Research On Hedging Strategy Of Steel Futures In M Steel Company

With the rapid development of China's economy,as an indispensable part of China's economic development,the development of steel industry has been playing an important role.However,in recent years,the whole iron and steel industry has encountered development difficulties,such as overcapacity,environmental pollution,and excessive market price fluctuations.Domestic iron and steel enterprises are facing huge losses.Local iron and steel enterprises choose various ways to maintain their own development,such as choosing futures to hedge against market risks,and the state has timely launched supply side reform As a steel enterprise,how to make full use of futures hedging tools to improve its production and operation has become a very important topic.This paper studies the current situation of hedging business of M company.Through the analysis of previous cases and interviews with experts,it finds out the existing problems of M company in the four aspects of the whole hedging strategy front-end Market Research and judgment,middle-end scheme formulation,back-end operational risk,and system and evaluation.Through the analysis and research of these problems,the real dilemma and crux of M company in the whole process of hedging strategy are clarified,and the part that must be improved in the previous hedging strategy is found,and the solutions or improvement measures are put forward for this part of the problem,and the whole hedging strategy is optimized,so that M company can make better use of futures hedging Tools to achieve stable operation and sustainable development.At the same time,this paper forecasts the optimized hedging strategy in the case,through the analysis and summary of its actual operation effect in the prediction case,the optimized hedging strategy achieves the expected effect.Compared with the previous hedging strategy,it is closer to the actual situation of production and operation of M company,more scientific and perfect to solve the risk problems encountered in production and operation of M company,more It has completely achieved the goal of hedging,effectively improved the company's profit,improved the production and operation strategy of M company,and really played a key role in the stable operation and sustainable development of the company.Through the analysis and research of this paper,we come to the conclusion that:M company must make better use of futures hedging tools,combine its own development with hedging concept,make the most effective hedging strategy which is most in line with the needs of enterprise operation,and improve it continuously,so as to avoid production and operation risks and stabilize the enterprise Purpose of operation.