Latest / The Buyer's Side with Fexingo: Procurement, Sourcing, and B2B Purchasing Decisions
How a Buyer Used Option Contracts to Lock in Steel Prices
Episode 69 of The Buyer's Side with Fexingo digs into a powerful but underused procurement tool: option contracts for commodity price hedging. Lucas and Luna break down how a mid-sized manufacturer's procurement team bought call options on hot-rolled coil steel in early 2025, locking in a ceiling price while preserving upside if prices fell. The result: when steel surged 28 percent after a major blast furnace outage in Q3 2025, the company saved $4.7 million versus spot purchases. Lucas explains how the options worked mechanically, why the finance team initially balked at the…
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