Research On Futures Hedging Of Steel Product In Beijing Shougang Alliance Of Xingang Science&Trade Co.,Ltd (BSAX)

Bigger price fluctuation of non-ferrous metals has appeared since2008due to the economy crisis. Meanwhile, the trade and export policies are adjusted constantly by the state in order to limit the over-investment of steel branch, which restrains the rapid growth of steel branch to some degree. BSAX mainly works on steel products processing whose cost and profit are highly influenced by the price fluctuation of steel products, 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 steel hedging of BSAX.(2) Aimed at the major affairs of BSAX, the factors influencing the price of steel product, including demands, supply, exports, macro-economy, stocks, costs etc are analyzed in detail.(3) The general situation, organization structure, operation and achievement of BSAX are briefly introduced in this thesis, and the feasibility and the necessity of steel hedging are analyzed.(4) The detailed scheme of steel hedging of BSAX is promoted, and the detailed content involved in the scheme are discussed, including the amount, investment, risk control, cash apply of the steel hedging etc. Finally, the practical cases of steel hedging are illustrated in the thesis.