Hedge the Aluminum in Your Scrap
Know your aluminum recovery percentage from physical assay reports, then hedge that metal content on the LME using Novaex — from Taint/Tabor at 95%+ to Zorba at 85-92%.
Aluminum Scrap Hedging
Aluminum scrap — whether it's Taint/Tabor, Zorba, or alloy secondary materials — contains recoverable aluminum metal. The hedging principle is straightforward: determine the aluminum content from your assay report, then sell the equivalent LME aluminum lots to lock in the base price for the recoverable portion.
Recovery-Based Hedge Sizing
Enter your aluminum recovery % from assay reports — whether it's 95% Taint/Tabor or 88% Zorba — and Novaex calculates the exact LME lots needed to hedge the metal content.
Grade-Aware Positioning
Aluminum scrap recovery varies significantly by grade. Track hedge positions for Taint/Tabor, Zorba, alloy scrap, and other secondary materials separately, each calibrated to their assayed aluminum content.
LME Contract Selection
Match your hedge to your processing timeline — Cash, 3M, or monthly prompts out to 15 months. Align the hedge tenor with when you'll sell the recovered aluminum.
Integrated Position Management
Track your physical aluminum scrap holdings alongside LME hedge positions in one view — unified P&L, real-time MTM, and margin visibility on every position.
Why Hedge Aluminum Scrap With Novaex?
Purpose-built tools for scrap processors, shredding units, and secondary smelters who need to hedge the aluminum content of their scrap.
Accurate Hedge Ratios
Hedge the actual aluminum content, not the gross scrap weight — critical for mixed grades like Zorba where recovery can vary 85-95%.
Multi-Grade Tracking
Manage positions across Taint/Tabor, Zorba, alloy scrap, and other grades with grade-specific recovery rates.
Real-Time MTM
Mark-to-market your LME hedges against physical aluminum scrap in real time — see your net exposure at any moment.
Margin Management
Monitor margin requirements on your LME aluminum hedges with alerts before calls hit.
Frequently Asked Questions
Hedge Your Aluminum Scrap Exposure
Calculate recovery-based hedge sizes, place LME hedges, and manage aluminum scrap positions in real time.