A Brief Study On Use Of The Hedging Of Risk Management In Kunming Iron And Steel Company

Steel is the world’s second largest commodity after crude oil varieties. It is an indispensable part of the infrastructure industry. In China steel industry is an important pillar. Iron and steel industry development, greatly influenced the development of national economic construction. Steel chain covers a very wide range of iron and steel enterprises in the production and operation of the Central Standing Committee by the prices of raw materials and finished products brought about by unpredictable fluctuations in the price of risk. Future as hedging tools has been in copper, aluminum and other non-ferrous metal trading is effectively applied. With the March 27,2009 steel futures in Shanghai Futures Exchange’s successful listing of the iron and steel enterprises with new hedging tools and business ideas.Steel futures hedging for the exploration of the role of enterprise risk management, this paper summing up the experience in steel futures on the basis of success stories, and actively explore Kunming Iron and Steel steel futures hedging on the role of risk management. Kunming Iron and Steel from the further strengthening of risk management tools, this paper proposes a system of Kunming Iron and Steel Futures preliminary ideas, Kunming Iron and Steel to explore the use of hedging and operational processes, and by simulating the effectiveness of the hedge was assessed.Kunming Iron and Steel Research hedging of risk management role in helping to improve the level of risk Kunming Iron and Steel, will help present a new business methods and ideas, more conducive to business efficiency of expression.