ZW Group Using Strategy Of Hedging

Over past decades, with the prosperity of the world economy and a rapid growth of Chinese economy, there is large demands in copper. so most of copper enterprise expanded the products capacity,it led to copper price has always kept in high level, and there is a big price risk on the copperplate purchase and copper line sales for enterprise, they urgently need to seek a way to avoid the price risk.This paper analysis the risks on both materials supply and sales products of ZW groups’copper unit, based on company operation situation and industry competitiveness environment,it introduces copper unit take different hedging strategies depend on differences from pricing way pricing schedule and pricing market,and aims to take further optimized method on all kinds of hedging performance.through analysis inherent risks of future market, it points out that copper unit face the risks when they operate hedging and comes up with some solutions to guarantee the risk prevented at the same time. it reflects copper unit take advantage of spot market and future market, exert the financial and commodity’s nature of copper to realize the long_time operating sustained.