Research On Hedging Risk Management Of China's Steel Future

Steel has a wide range of uses,can be used to build roads,houses,manufacture,transport,etc.,in our country has played a important role in economic development,it reflect the level of our country’s development and comprehensive strength.Since2012,China’s iron and steel output,trade,consumption and other aspects are in the world’s leading position,but it doesn’t have this aspect of the pricing power.When the international financial crisis,steel prices will appear very big fluctuations,the relevant steel enterprises will suffer a huge impact,some enterprises will even face bankruptcy situation.Futures hedging and price discovery has a very powerful function,steel enterprises can use it to avoid the price volatility risk;Using its to formulate corresponding countermeasures in advance.Therefore,China must obtain the corresponding pricing power in the international steel enterprises can be sustainable development,which need a perfect,advanced,with international influence of steel futures market.First of all,this paper makes an in-depth analysis of the domestic and foreign steel market and summarizes the relevant factors that can affect its price in the industry chain,discusses the various risks existing in steel companies,and determines the internal and external risk factors of enterprises.Secondly,the case of steel futures contract is analyzed and studied for N steel enterprise.By exploring hedging strategies and risk communication,this document evaluates and resolves cases and identifies deficiencies in hedging plans.This document improves the previous hedging strategy and provides solutions or measures to improve the occurrence of these situations and optimize the overall situation.In this paper,main is to study N iron and steel co.,LTD.Steel hedge strategy,thus for iron and steel enterprise that can meet the needs of its actual development of scientific and reasonable opinions and suggestions,improve enterprise of iron and steel products hedging related concept,so that the business is a good way to avoid risk,to sustainable development.The innovation of this study is to study the whole process of corporate hedging and specific strategy,by studying their original strategy,so as to find the problems,and put forward specific solutions to solve these problems and how to put these strategies and the integration of enterprise’s actual operation.