Scrap Hedging

Hedge the Zinc in Your Scrap

Know your zinc recovery percentage from physical assay reports, then hedge that metal content on the LME using Novaex — from new zinc offcuts at 95%+ to galvanizer's dross at 55-70%.

By Novaex Team

Zinc Scrap Hedging

Zinc scrap comes from diverse sources — galvanizing plant dross, die-casting rejects, old zinc sheet, and production offcuts — each with very different zinc recovery profiles. The hedging principle is the same: determine the recoverable zinc from your assay, then sell the equivalent LME zinc lots to lock in the base price.

Recovery-Based Hedge Sizing

Enter your zinc recovery % from assay reports — whether it's 95% new zinc offcuts or 55% galvanizer's dross — and Novaex calculates the exact LME lots needed to hedge the metal content.

Grade-Aware Positioning

Zinc scrap recovery varies widely by source. Track hedge positions for old zinc, new zinc, die-cast scrap, and dross separately, each calibrated to their assayed zinc 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 zinc.

Integrated Position Management

Track your physical zinc 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 Zinc Scrap With Novaex?

Purpose-built tools for galvanizers, die-casters, and recyclers who need to hedge the zinc content of their scrap and dross.

Accurate Hedge Ratios

Hedge the actual zinc content, not the gross scrap weight — critical for dross where recovery can be as low as 55%.

Multi-Grade Tracking

Manage positions across old zinc, new zinc, die-cast, and dross with source-specific recovery rates.

Real-Time MTM

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

Margin Management

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

Frequently Asked Questions

Hedge Your Zinc Scrap Exposure

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