Scrap Hedging

Hedge the Copper in Your Scrap

Know your copper recovery percentage from physical assay reports, then hedge that metal content on the LME using Novaex — from Bare Bright at 99%+ to #2 Copper at 96%.

By Novaex Team

Copper Scrap Hedging

Copper scrap — whether it's Bare Bright, #1 Copper (Berry/Candy), #2 Copper (Birch/Cliff), or Millberry — is ultimately recoverable copper metal. The hedging challenge is straightforward: determine the copper content from your assay report, then sell the equivalent LME copper lots to lock in the base price.

Recovery-Based Hedge Sizing

Enter your copper recovery % from assay reports — whether it's 99% Bare Bright or 96% Birch/Cliff — and Novaex calculates the exact LME lots needed to hedge the metal content.

Grade-Aware Positioning

Different copper scrap grades have different recovery profiles. Track hedge positions for #1 Copper, #2 Copper, Millberry, and insulated wire separately, each calibrated to their assayed metal content.

LME Contract Selection

Match your hedge to your processing timeline — Cash, 3M, or monthly prompts out to 15 months. Novaex shows the contract structure so you align the hedge with when you'll sell the recovered copper.

Integrated Position Management

Track your physical copper scrap holdings alongside LME hedge positions in one view — unified P&L, real-time MTM, and margin visibility on every position.

Platform Benefits

Why Hedge Copper Scrap With Novaex?

Purpose-built tools for scrap dealers, smelters, and recyclers who need to hedge the copper content of their scrap holdings.

Accurate Hedge Ratios

Hedge the actual copper content, not the gross scrap weight — avoiding over-hedging that creates unnecessary margin exposure.

Multi-Grade Tracking

Manage positions across Bare Bright, #1 Cu, #2 Cu, and Millberry with grade-specific recovery rates.

Real-Time MTM

Mark-to-market your LME hedges against physical scrap in real time — see your net exposure at any moment.

Margin Management

Monitor margin requirements on your LME copper hedges with alerts before calls hit.

Frequently Asked Questions

Hedge Your Copper Scrap Exposure

Calculate recovery-based hedge sizes, place LME hedges, and manage copper scrap positions in real time.