Research On The Futures Hedging Of Steel Enterprises In China

Deepened with the development of global economy, and enterprise scale and quantity increase gradually, the enterprise will be likely to face more challenge from external environment, but also inevitably under the big swings in commodity prices could produce risk. Our country is the world’s largest producer of steel and steel products and consumer, steel and steel products over the years since the average yields are close to 600 million tons, up and down the number of steel and steel products consumption in our China is about 50% of the proportion of global consumption. But we know that the supply of raw material, the related steel production enterprise’s output, steel output how many inventory, the supply of steel and the current state of micro and macro economic situation, etc., in a way that will greatly affect the price of steel, so there are many factors impact on steel prices.Since October 2008, the global financial crisis, the happening of the corresponding sharp fluctuations in commodity prices, inevitably to the real economy caused quite heavy, in our country, a big Bob steel related enterprises loss serious the crisis. But, we think, if in the domestic steel futures market, so many steel companies can take advantage of the market for hedging operation at the time, so the development of enterprises must be long-term, sustainable, progresses day by day. In march of 2009, China has launched a very significant steel futures, very strategic long-term vision. But in the real economy in the second half of 2011, unfortunately being attacked by the European debt crisis once again, the market price of the commodity corresponding steeply. Some steel enterprises in the use of a debt crisis of steel futures hedging effect greatly avoids the raw material and finished product price fluctuations caused by the huge steel, more clear for steel enterprises for hedging the significance of the steel. But due to the lack of steel futures varieties, on some steel enterprises to form the restriction, the steel companies of the spot price risk exposure, and paid a heavy economic loss.This paper mainly introduces the steel enterprises involved in hedging in the futures market solutions. And as a reference, this paper puts forward the futures hedging in China’s steel enterprises how to develop the method. Steel enterprises both in how market condition under different areas or sales can get considerable economic income. And steel enterprises in the field of hedging put forward the corresponding countermeasure, to better play to the functions of the futures market, improve efficiency, and hope can on steel enterprise continuous development.