Research On Risk Management Of Nickle Purchase Based On Futures Hedging In B Company

With the development of the financial market,more and more companies take part in it,carry out hedging through financial derivatives such as futures and options,avoiding price risk,smoothing costs and ensure profits.Although stainless steel and new energy battery industries started late in China,they paid no less attention to the futures hedging of nickel than some other traditional industries.However,many companies have also exposed many problems in the process of participating in hedging,which not only can not hedge effectively,the risk can not be controlled,but also cause financial losses.This paper takes Company B as an example,analyzes the current situation and risks of nickel raw material purchase based on the characteristics of the company’s industry and its own character,proposes a hedging business plan suitable for the company’s daily operations,identifies and evaluates the price and inventory risks that arise in the hedging process,and effectively controls them to improve the rationality,scientificity,and risk management level of the company’s hedging operation.This paper studies using documentary research,case analysis and data analysis methods.First of all,through a comprehensive study of the relevant documents on risk management and hedging at home and abroad,conduct a basic method of hedging combining technical and fundamental analysis.Using case analysis and data analysis method to analyze the data of nickel spot price and futures price from January 2019 to November2022,which turn out to be highly related,then calculating the optimal hedging ratio,and design the ideas and schemes of B Company’s hedging work.Based on the production and purchasing plans,empirical analysis was conducted on the long and short hedging of nickel,and performance evaluation and comparative analysis were conducted.The results showed that both long and short hedging can effectively control the risk of nickel raw material purchase.Furthermore,refine hedging process to dynamically manage the inventory of nickel raw materials.Finally,conduct safeguard measures in the actual situation of the company to make sure the hedging operation goes smoothly.