 Shell Bitumen, through Shell Trading, can leverage their significant international trading expertise to create financial mechanisms that help reduce client exposure to price fluctuations. Commonly referred to as hedging, these mechanisms guarantee a future price for bitumen and are typically considered for large infrastructure projects only. Pricing mechanism options are generally agreed for weekly/monthly volume off-take over a fixed time period and include: - Fixed pricing
- Price moves with the market to an agreed maximum 'capped' or minimum 'floored' price level, outside of which the price remains fixed at the capped or floored level
With price risk management, customers know their bitumen costs in advance and can incorporate them in their bids without having to account for a risk premium. Or for tenders that customers have already won (i.e. on which they know exactly how much they can afford for their fuels) customers can monitor fixed price offers and buy when the price is in line with what they can afford to spend. Price risk management gives customers peace of mind. Supply contracts can be made for 1-36 months, on a minimum volume of 5,000 tonnes or 100 tonnes / month. For more information about hedging solutions contact your Shell Bitumen sales/technical contact. | 
