FCStone - Commodity Risk Management : Energy - Construction
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  Energy
Energy - Construction

In the construction industry, the price of energy input costs are heavily dependent upon the supply, demand and the particular markets in which you purchase. The asphalt, heavy construction and aggregate industries are open to the volatile commodity pricing of several energy inputs: liquid asphalt, diesel fuel, natural gas, propane, gasoline, waste oils and other fuels. Trying to manage these commodity price risks in the construction industry becomes an extremely complex process. The price you pay for these commodities makes it difficult to create project bids, manage budgets and ultimately secure margins. When a company does not actively manage these price risks, exposure can negatively impact bottom-line profitability.

FCStone works with many companies in the asphalt, heavy construction, and aggregates industries -- producers, suppliers, and contractors -- to manage their energy price risk. Our customers in these industries have realized that there are innovative ways to manage the price volatility to better match their budgets, and ultimately secure positive margins for their business.

FCStone offers unique market intelligence and innovative financial solutions to address commodity price volatility. Our consultants have significant risk management experience and can make important contributions to your organization. Through the Integrated Risk Management Program (IRMP), FCStone provides companies with the solutions, tools and platforms necessary to meet budgets, stabilize input prices and secure margins. With the non-exchange traded market for energy products, our extensive proprietary databases and detailed historical knowledge provide you with a tremendous competitive advantage and measurable bottom-line results.