#United States #CME Group #Scottsdale #Flack Global Metals #Turkish scrap

Flack Global Metals Executes First Turkish Scrap Options Contract

On April 8, 2025, Flack Global Metals (FGM), an industrial firm specializing in manufacturing, distribution, and capital markets, announced a significant milestone in the metal trading sector. The company has taken a pivotal role as a counterparty for the inaugural Turkish scrap options contract introduced by the CME Group, a leading marketplace in derivatives trading.

This groundbreaking contract symbolizes a crucial development in the global trading of recycled scrap metals, a key component in steel production. Earning its 'Turkish' designation from the source of price discovery, this contract stands out as a vital tool, facilitating effective risk management and providing hedging capabilities essential for participants in the ferrous metals sector.

Brad Clark, the Vice President of Capital Markets and Metal Trading at Flack Capital Markets, expressed enthusiasm regarding this contract, stating, "We are pleased to be involved in getting this contract off the ground, and it further cements our status and reputation in providing robust risk management tools to the steel industry." His affirmations reflect the confidence and experience of FGM in the evolving complexities of metal trading, particularly through Flack Capital Markets, renowned for possessing the most sophisticated capital markets desk in the ferrous metal industry.

The innovation is timely, following the firm's recent accomplishments, including engagement in the first European hot-rolled steel options trade and the first Busheling Ferrous Scrap Futures contract. These achievements underline FGM’s commitment to driving advanced risk management and hedging techniques, solidifying its status as an industry innovator.

Jin Hennig, the Managing Director and Global Head of Metals at CME Group, acknowledged the industry's evolving needs by stating, "Recycled scrap metals are a vital component of steel production, and our clients continue to ask for additional flexibility to hedge their exposure effectively. We are pleased to see participation in our new Turkish scrap metal options, which will provide the ferrous supply chain with even more tools for managing their price risk." This collaboration with CME Group is anticipated to empower players within the ferrous metals supply chain, providing diverse and flexible alternatives for managing price risks associated with market volatility.

Flack Global Metals prides itself on a comprehensive approach to the steel trading ecosystem. Its operations, which span across raw steel procurement to finished product sales, integrate multiple essential divisions. These divisions effectively collaborate to de-risk the steel supply chain, ensuring clients can confidently navigate market fluctuations.

Headquartered in Scottsdale, Arizona, FGM operates on a global scale, with branches in major cities including Atlanta, Chicago, Cleveland, London, and Lugano. By leveraging proprietary hedging strategies and market intelligence, Flack Global Metals adeptly manages price volatility, empowering its customers with cutting-edge solutions tailored to their needs.

As FGM ventures deeper into innovative trading solutions such as the Turkish scrap options contract, it not only reinforces its standing in the metals trading sector but also sets a precedent for future developments in risk management and hedging. This significant step forward in the steel industry showcases FGM’s dedication to pioneering methodologies that support sustainability and efficiency while addressing the challenges faced by market participants in today's dynamic commodity landscape.

In conclusion, the launch of this Turkish scrap options contract by Flack Global Metals signifies its commitment to enhancing the trading environment for recycled metals. By facilitating this crucial contract in partnership with CME Group, FGM demonstrates its foresight and expertise in navigating the complexities of modern metal trading, portraying a future ripe with opportunities in the global ferrous metals market.