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Enuit Sees Metals Opportunity

Earlier this week, I spoke with Virgil Cai, the product development manager at Enuit about its metals’ capabilities. Enuit has apparently been hard at work bolstering the functionality for metals like Iron Ore and concentrates. It is also responding to trends in the metals market, he told me. “There is widespread uncertainty and volatility in the markets right now due primarily to the Russia-Ukraine war,” he said. “Add to that the ongoing COVID situation in China where lock downs continue to disrupt steel making and other activities.” Both ferrous and non-ferrous metals are seeing huge volatility and price movements. So, price risk is an area of interest and one in which Enuit has been working to deliver new capabilities.

In the price risk area, one of the things that Enuit has addressed is cash flow and how to break it down and re-aggregate so it can be better managed. “Iron Ore, for example, has so many moving parts and a systematic approach is needed. Now, users can break cash flows down into different components and they have the flexibility to decide how to break down the components and aggregate them later.”  As China is a key market for the iron ore business, he was also keen to point out that trading there operates differently to the rest of the world – they have different business processes. Enuit have built in the flexibility to cater for this in the solution, he told me. Enuit uses a finite difference engine to test sensitivities and help the user figure out their risk exposure for each component. He is also proud of how the solution handles financial and physical position, which he says is configurable and easy to use as well.

What excited Virgil the most seems to be that Enuit is moving its’ CTRM Solution (Entrade) to focus much more on the supply chain management side of metals. “Its capabilities to handle supply chain management in a granular fashion set it apart,” he claims. It utilizes activity data and event management to capture snapshots at every point through the supply chain like an ERP solution, he told me.  An all-new accounting engine means that everything can be accounted for properly. “The brand new supply-chain-management-compatible accounting module is now in production with a client,” he told me. “Every event through the life cycle is captured and properly accounted for and this ability actually helps on the trade execution side of things as well.”

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Meanwhile, he sees good demand in the market and especially for Steel. “Electrification is also helping to keep demand high as well as the Chinese COVID constraints around production so that the supply-demand balance is quite tight,” he said.