Building Certainty

Lock in Prices

Reduce Risk

Protect Profit

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  • Cement: a global industry trapped in the past

    Cement is one of the most used materials on the planet, but its market is unpredictable. Transportation bottlenecks, shipping delays, and geopolitical events disrupt cement availability. A single supply chain shock can drive up prices, delay projects, and destabilise the market.

  • 01

    Price Volatility

    Fluctuations in energy costs, raw material prices, and global events make cement pricing unpredictable. Contractors are forced to take on massive financial risk, often leading to insolvency when costs spiral out of control.

  • 02

    Fragile Supply Chain

    Due to reliance on raw materials, logistics, and global economic shifts. Disruptions like fuel price spikes, labor shortages, and transportation delays can cause bottlenecks, impacting production and costs.

  • 03

    Regulation and Carbon Costs

    Governments across the globe are implementing carbon taxes, trade tariffs, and new sustainability policies. These regulations drive up production costs and compel suppliers to rethink their business models.

  • Hedging in other Sector

    Industries like agriculture, aviation, and manufacturing use financial tools to protect against price swings. These strategies reduce risk, stabilise costs, and improve profitability—construction can do the same.

  • 01

    Manufacturing protects Margins

    Manufacturers secure profits using bulk purchasing, supply contracts, and hedging strategies. Without risk management, raw material price swings could disrupt operations.

  • 02

    Agriculture Lock in Prices

    Farmers use futures contracts to stabilize prices for wheat, corn, and soybeans, ensuring predictable revenues despite supply chain and weather disruptions.

  • 03

    Aviation locking in fuel prices

    Airlines hedge jet fuel prices using futures and options contracts, protecting against oil price fluctuations. This ensures ticket prices stay stable and prevents financial shocks.

  • 04

    Finance hedging market risk

    Banks and investors use options contracts to hedge against currency fluctuations, stock market changes, and interest rate volatility, providing financial stability in uncertain markets.

  • What is the current process in cement

    Cement buyers rely on outdated pricing models, exposing them to sudden cost spikes and uncertainty. Without effective price risk management, supply chain disruptions and price swings threaten profitability.

  • 01

    Spot Price

    Most cement transactions happen at daily market prices. Buyers risk sudden price surges that make projects unviable, while sellers face fluctuating demand, making it harder to plan production efficiently.

  • 02

    Fixed Contracts

    Buyers lock in prices for a set period, but contracts rarely match the full project timeline. When costs rise unexpectedly, suppliers absorb the risk or renegotiate terms, creating instability across the supply chain.

  • 03

    Forward Contracts

    Forward contracts allow buyers to secure cement at a fixed future price, but these agreements are complex, require negotiation, and lack a standardised marketplace, limiting accessibility and adoption.

  • 04

    No-Premium Options

    Some agreements allow buyers to lock in prices without full commitment, but they don’t fully hedge against extreme price swings. Sellers remain exposed to uncertain demand, limiting their ability to optimise production.

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