The Research Of Iron & Steel Enterprise Take Use Of Derivative To Solve Iron Ore Pricing Model

Iron ore,as one of the most important raw materials for iron & steel industry, the price variation is focused by all market participants, and it directly affect the vital interests of all related parties. Since 2003, China’s iron ore importing ranked first one in the world, however, regard to international iron ore pricing model, our iron and steel enterprises are always in a passive position. It impact China’s iron & steel industry development, even seriously affect the development of the national economy. First of all, this thesis will analyze status quo of iron ore supply in recent years; basis in the of international iron ore supply & demand, and iron ore pricing model development, try to dig out some internal factors and predict the development trend in the future of it; in addition, the thesis will also elaborate the status of China’s iron and steel industry at present, and analyze deep-seated reasons of that, meanwhile raise the question; what’s more, this paper will focus on introducing some variety popular financial derivatives in the international market at present, will discuss and research how to combine current iron ore pricing model with derivative hedging and arbitrage.Try to take use of it to solve above problems; last but not least, based on above research results, the thesis, will try to give some positive suggestions and recommendations to domestic iron & steel enterprises for the iron ore pricing model.