Study On Price Risk Management Of Imported Indonesian Steam Coal By A Company

With the global financialization,the financial attributes of commodities have become increasingly prominent.Most of the world’s top 500 companies use financial derivatives to manage commodities.Moreover,the information system of commodity trading and risk management,CTRM(commodity trading and risk management system),has been widely used in the world to help enterprises manage strategic objectives setting,commodity trading,risk response and effect evaluation.However,the domestic commodity enterprises have a shallow understanding of price risk management,low participation in the use of derivatives to diversify risk.Therefore,it is urgent to improve the level of price risk management of commodity enterprises,which can help them avoid or reduce price risk and achieve their business objectives.China is the largest importer of steam coal in the world.Importing coal has become an important way to adjust the domestic coal market,stabilize the price of coal and adjust the balance between supply and demand in the coal market.A company is a state-owned trading company.After nearly ten years of development,A company occupies an important position in the national import steam coal traders.In 2017,the company ranked tenth in the import trade of steam coal in China.Based on the theory of risk management and price risk management,this paper adopts the methods of literature research,field investigation and quantitative and qualitative analysis method.Firstly,it analyses the current situation of imported Indonesian steam coal trade of A company,identifies price risk factors such as supply and demand,purchase lead time,exchange rate,transportation,contract risk.Secondly,the risk matrix method is used to evaluate the identified price factors.Finally,through the results of the evaluation,the corresponding countermeasures are given,and price risk control is strengthened by improving the organizational structure of A company and improving information management.Through this study,we can see the importance of using financial derivatives to manage price risk in steam coal trade,and the necessity of establishing a standardized,refined and executable price risk management system for steam coal import trading enterprises.This study has practical reference significance for imported steam coal enterprises to carry out price risk management.