Research On Futures Hedging Of Aluminum In Huaxinda Corporation Of Aluminum Product

Bigger price fluctuation of non-ferrous metals has appeared from 2002 due to the economy influences domestic and aboard. The production of electrolytic aluminum has increased gradually from 2003 and doubled several times in recent years. The production of electrolytic aluminum reached 12.56 million tons in 2007. Meanwhile, the trade and export policies are adjusted constantly by the state in order to limit the over-investment of electrolytic aluminum, which restrains the rapid growth of electrolytic aluminum to some degree. Huaxinda Aluminum Corporation mainly works on aluminum product processing and often purchases electrolytic aluminum from the market, whose cost and profit are highly influenced by the price fluctuation of electrolytic aluminum, so some methods must be found to avoid the risks.The main research works in this thesis are as following:(1) The general situation and progress of futures market domestic and aboard are sketchily introduced, and the concept, general theory, methodology, aim and influencing factors of hedging are emphasized, which provides theoretical basis to the aluminum hedging of Huaxinda Aluminum Corporation.(2) Aimed at the major affairs of Huaxinda Aluminum Corporation, the factors influencing the price of electrolytic aluminum, including supply-demand, supply, electricity price and import/export taxes of alumina, economic cycle, micro-economy, stocks, US dollar, foreign exchanges etc are analyzed in detail.(3) The general situation, organization structure, operation and achievement of Huaxinda Aluminum Corporation are briefly introduced in this thesis, and the feasibility and the necessity of aluminum hedging are analyzed detailedly.(4) The detailed scheme of aluminum hedging of Huaxinda Aluminum Corporation is promoted, and the detailed content involved in the scheme are discussed, including the amount, month, investment, price target, technical analysis, hold store risk assessment, cash apply of the aluminum hedging. Finally, the practical cases of aluminum hedging are illustrated in the thesis.