The Metals Agency receives approval for export credit insurance

The Metals Agency, San Francisco, has been approved for export credit insurance through JPMorgan Chase and the Export-Import Bank of the United States.

Aldo Jordan, the company’s founder and CEO, says this is the first time The Metals Agency has secured bank-backed export credit insurance, adding that the move reflects how the business is evolving.

“The biggest driver is the rising value of the commodities we trade,” he says. "When you are working with metals like copper, aluminum and stainless steel, price moves can be significant, and that makes strong credit protection much more important.

“The other factor is that this is not something you put in place overnight. Export credit insurance goes through a detailed bank and underwriting process, and it can take time to structure properly. It is also still a specialized area, so not every financial institution is set up to move quickly in this space.”

Jordan says The Metals Agency was fortunate to work with JPMorgan Chase and the Export-Import Bank of the United States. “Having the right banking relationships made a real difference in getting this done.”

The Metals Agency’s goal was to help make export credit insurance more available to companies that might not otherwise have had access to it.

“Traditionally, export credit insurance has been more accessible to larger companies, while many smaller and midsized participants in the scrap metal industry have had limited access to this kind of protection,” Jordan says, adding that it provides added confidence that payment is protected in the event of a default by an overseas buyer.

“Defaults are still relatively rare, but they do happen, and the value of a single shipment today can be substantial. For example, one container of No. 2 copper can be worth roughly $250,000 in the current market. At those values, even one disrupted transaction can have a meaningful impact.

“This kind of insurance gives scrap metal traders the ability to grow sales volumes and pursue international business with greater confidence, knowing they have an added layer of protection in place."

Obtaining export credit insurance enables The Metals Agency’s customers to benefit by having access to new markets and new consumers, he says, while adding a risk management tool to protect the payment side of an international transaction.

“That added protection can make it easier for customers to do business directly with end consumers in new markets around the world while also improving confidence around liquidity and cash flow,” Jordan adds. “At the end of the day, it is about helping our customers pursue more opportunities with greater security.”

Jordan says exports account for more than 70 percent of The Metals Agency’s overall business. “We expect that share to grow as export credit insurance gives more suppliers the confidence to access international markets directly and do business with end consumers overseas.”

Jordan concludes, “As metal values rise and global trade becomes more complex, having the right credit protection is no longer a luxury—it is part of doing business responsibly.”