Commodities

Coverage

KYOS CCA covers a wide range of commodities. With in-depth market knowledge KYOS analyses what products can be traded, and which products are optimal to use in sourcing strategies. Besides well known products as power, brent and CO2 there is a variety of derivatives available on the market. Examples include various plastics, metals, naphta and diesel. Linking sourcing strategies to tradable products leads to lower risk and reduced costs.

Understanding relationships

KYOS CCA applies advanced econometric tools to generate realistic Monte Carlo simulations of prices and spreads. We include volatilities, correlations and the innovative concept of co-integration. We have published about these concepts in leading academic journals and implemented them for day-to-day use at our energy customers. We have specific expertise in correctly capturing the price interactions, for example between oil and oil derivatives, CO₂ and electricity prices, oil and natural gas prices, and among metals and plastics. This is relevant in many risk calculations, including the assessment of oil-indexed gas contracts.

Exchanges

KYOS CCA covers a wide range of exchange-traded and over-the-counter commodities:

• Metals: aluminium, copper, nickel, lead, zinc, tin and steel  
• Precious metals: platinum, palladium, gold and silver
• Plastics: high density polyethylene (HDPE), linear low density polyethylene (LLDPE), polypropylene (PP), low density polyethylene (LDPE), polyethylene terepthalate (PET)
• Energy: natural gas, electricity, coal, carbon 
  
• Oil & distillates: WTI, brent, OPEC basket, naphtha, gasoil, fuel oil, jet fuel, diesel, asphalt and bitumen
• Petrochemical: olefins – polyethylene and polypropylene (plastics) and aromatics – toluene, benzene, xylene (solvents)