China's Steel Enterprises To Participate In Steel Hedging Problems And Countermeasures

Rapid Development of the Futures industry in China, the relationship between the bulk of the people's livelihood strategies and commodity futures has been international practice. Faced with the enormous fluctuations in material prices, especially in October 2008 ,the financial crisis intensified,The great damage on the real economy. In China, due to huge fluctuations in the prices of raw materials that causes a large number of steel companies have been in losses. Enterprises take full advantage of the futures market to hedge operations, for their own long-term, healthy and stable development has played a positive role. The national strategic vision from the introduction of steel futures in due course, of great significance. I learn from the pre-closed steel futures market in our country lessons, combined with companies involved in the issue of exposed steel futures to study how the health of steel enterprises, and actively use the futures market, and effective risk management, and put forward specific proposals and strategy.I stand on the management's point of view, starting from the theory with practice, first of all the steel from the theory of hedging in the futures business concepts, principles and principles of analysis of foreign and domestic steel futures launch of the status quo. The article then analyzes the key steel enterprises in the actual operation of the many problems that exist for these issues recommendations for improvement. Finally, I made three business strategies of the hedge, combined with a metal Co., Ltd. Taizhou Jiesing reported examples of hedging process described in detail in order to give our country's steel business from the decision-making reference.