Research On Futures Hedging Of Steel In Xinganglian Corporation Of Steel Product

Since2008, due to the influences of international financial crisis, the price of iron&steel products appeared severe flactuation. Steel output of China continuous enlarge and its rude steel output had reached567.8million tons in2009. Since june2008, the price of steel products began to decrease from the top, iron&steel industry faces margins lower risk and return assets of reducing risk. Avoid risk is more urgent requirement, Stock value change risk is big, Decision-making become so difficult. Make more competitive. The characteristics of steel products market turnover is big. Deal with the relationship between the seller and the buyer is more important than consumer market, more durableThis paper mainly reseach as fellow:(1). An overview of the foreign and domestic futures market and the development of basic situation.Introduced the concept of hedging futures, hedging the basic theory and basic methods of hedging, hedging purposes, the influence factors of hedging. This paper provides the theoretical basis for steel product business in Xinganglian company.(2). In connection with mainly business of Xinganglian company, this paper analysis the element to effect the price of steel product in detail, including the price of steel supply, cost, the impact of the economic cycle, the macroeconomic effects, inventory, the dollar and the impact of foreign exchange etc..(3). This paper analysis the basic situation and the hedging of feasibility analysis. Introduces the basic situation of the company, organization structure, assets and business performance. Analysis on XGL Co. of steel hedging feasibility analysis.(4). This paper introduce the proposal of steel product hedge in detail, operational method, cost control method and risk prevention in SGXGL Co.