ESSAR STEEL ALGOMA HEADLINESSteel Producers /
Essar Steel Algoma
Algoma to Use Planalytics GasBuyer to Manage Natural Gas Price Risk
Oct. 6, 2006 Oct. 6, 2006 — Planalytics, Inc. announced that Algoma Steel Inc. has licensed Planalytics(R) GasBuyer(SM), a natural gas hedging and risk analysis platform. Algoma Steel will use the GasBuyer to identify opportunities to purchase its natural gas at lower prices.
The GasBuyer combines live NYMEX data with Planalytics' advanced price-analysis models and predictive technologies to evaluate market conditions and determine if natural gas is undervalued or overvalued. The GasBuyer makes this determination, up to a year in advance, by projecting how price movements will be influenced by:
- Fundamental factors — demand, inventory levels, etc.
- Technical analysis — support and resistance levels, etc.
- Trading dynamics — open interest, spread positions, etc.
- Future weather conditions
Based on its comprehensive market view, the GasBuyer suggests when hedging actions should be taken because prices are low or when hedging actions should be avoided because prices are too high. The GasBuyer helps companies cope with the extreme volatility of the natural gas market and make hedging decisions that proactively manage costs and price risk. Planalytics does not buy or sell gas, rather, it provides independent, unbiased guidance.
Companies can customize the GasBuyer by choosing specific hedging approaches, decision-making time intervals and buying rules. The GasBuyer can be used for any volume of gas and supports both physical and financial transactions, including forward buys, strips, futures, options, swaps, etc.
Algoma Steel is an integrated steel producer based in Sault Ste. Marie, Ont. Revenues are derived primarily from the manufacture and sale of rolled steel products including hot and cold rolled steel and plate.
Planalytics supplies Business Weather Intelligence(SM), actionable information companies utilize to understand and optimize the impact of weather—one of the most volatile of all external factors—on their business.