Study On Raw Material Purchasing Cost Control Of AL Stainless Steel Corporation Based On Hedging

With the rapid development of China's economy and the continuous improvement of people's living standards,stainless steel has been widely used in various fields of industry and life because of its good corrosion and heat resistance,and it has become an important raw material.In recent years,the quantity of stainless steel in China has been increasing and the quality has been improving continuously.China has become the largest stainless steel manufacturer and consumer in the world.Because the raw material purchasing of stainless steel manufacturer needs a lot of money,and the raw material purchasing cost accounts for a high proportion of the production cost,the fluctuation of its price brings huge risks to the normal operation and management of enterprises,so it is very necessary to control the raw material purchasing cost.This paper chooses AL stainless steel company as the research object from the perspective of hedging.Firstly,based on the research of hedging concept and theory,raw material purchasing cost control theory and risk minimization hedging model,the mechanism of hedging on raw material purchasing cost control of stainless steel manufacturer is qualitatively analyzed.Secondly,the composition of the company's raw material purchasing cost,the current status and problems of the purchasing cost control are analyzed in detail,and the necessity of hedging for the raw material purchasing is demonstrated.Through detailed comparative analysis of purchase price and price fluctuation data of AL stainless steel company's main raw materials,two kinds of raw materials,nickel and copper,were selected for hedging.Using the minimum risk hedging model and real raw material purchase cases,this paper puts forward the implementation plan and business process of the enterprise's raw material hedging of nickel and copper,and also analyses the business risk and puts forward the corresponding control methods.Empirical research shows that AL stainless steel company can effectively control the purchase cost of raw materials by hedging nickel and copper.This paper has reference significance for stainless steel manufacturer to carry out raw material purchasing hedging business.