Research On Hedging Risk Management Of Steel Enterprises

Nowadays,the development of steel enterprises are faced with hitherto unknown difficulties,in the emerging industry rapid development,the benchmark of backward production capacity of steel industry will undoubtedly become the main subject to the inventory to the production capacity,steel enterprises are under great economic pressure and price risk,Shanxi Haixin,Heilongjiang Xilin steel enterprises as layoffs bankruptcy,under this background,there were part of steel enterprises use hedging to avoid price risk,but Futures Hedging improperly may cause the enterprise to suffer greater losses.In this paper,the hedging risk management of steel enterprises as the starting point,study on the current situation of hedging and risk problems in China’s steel enterprises,and design a risk management framework.Through the research of hedging on the steel enterprise benchmarking,design suitable framework for large steel enterprise hedging risk management to hedge risk,control in advance to lock in profits or losses,to provide effective suggestions for steel enterprises to obtain the considerable development under the current Supply-side reform.This paper introduces the theory of hedging and risk management at home and abroad,discusses the concept and basic principles of hedging,the concept of risk management,processes and methods.On this basis,the paper expounds the hedging risk of China’s steel enterprises,and analyzes the current situation.As the most important part of this paper,the author according to the hedging S steel enterprise,designed the hedging framework of Steel Corp,including the design of hedging risk management framework and risk management information system,integrating the various modules of risk control effectively.The last part of this paper put forward the main conclusion,and put forward four policy suggestions of risk management and hedging of China’s steel enterprises.