The Hedging Solution Of Z Lead-Zinc Production Company

In 2018,the prices of lead and zinc have increased significantly compared with 2015.Due to global geopolitical and other factors,the macro-environment has become more complex,and the demand for hedging by lead-zinc companies has increased.Large lead-zinc companies have supporting futures business units and mature futures and spot risk management systems,which have a certain amount of participation in overseas or domestic futures trading,futures companies and other financial institutions are more difficult for large-scale enterprises to conduct business;domestic small and medium-sized lead-zinc companies general lack of international vision of enterprises,lack of response to the international macro and upstream and downstream emergencies,but also require futures companies and other institutions to provide more professional support and help.Therefore,under the current economic background,how to design a hedging program for medium-sized lead-zinc companies is of great significance.On the one hand,it helps companies to compete for costs and benefits while at the same time seeking lower profits for excess profits.On the other hand,it is also a futures service.The important composition of the entity helps the futures company to better gain market share.In view of this,during the process of designing a hedging program for a state-owned medium-sized lead and zinc producer Z,the author first conducted a comprehensive analysis of the lead,zinc,and silver markets under the new economic environment,stating that lead and zinc were sold at the beginning of the year.It is more appropriate to maintain value,and to design the annual hedging plan for lead and zinc respectively.It is also considered that due to uncertainty in the production of silver and the price at the beginning of the year is relatively low,it is advisable to conduct trades at the middle of the year.As for the monitoring of hedging,the author focuses on the characteristics of the lack of understanding of the foreign market by companies that are familiar with the domestic market,selecting LME futures premium/monthly monthly structure,LME inventory abnormality monitoring,LME category warehouse concentration reporting,and LME position concentration,the inter-market arbitrage between SHFE and the LME market,help companies monitor changes in foreign markets and allow companies to adjust hedging or spot trading plans to reduce losses when sudden changes occur in foreign markets.This article emphasizes that the designed hedging program should be operational,so that companies that are not familiar with the futures market can also be aware of their own costs,benefits,and risks at a glance.Through quality services,they try to minimize the risks that companies face when they choose the machine and choose the time.In the process of designing the project,it is necessary to fully communicate and communicate with the enterprise to help the company deal with the risks and opportunities brought about by unexpected events,and to use better services to enhance the customer's identity and stickiness.The innovation of this paper is to fill the gaps in the design of domestic hedging programs for medium-sized lead-zinc production comapnies under the new economic environment.The program has strong operability and has certain reference value for similar medium-sized lead-zinc production companies and futures companies..