Hedging The Optimization Strategy Of JT Copper Tube Company

With the deepening of the socialist market economy, the situation of the globalization and internationalization is becoming more and more clear, the competition of the industry is becoming increasingly fierce. In the face of the industry competition, at the same time copper processing enterprises also must have to face the enterprise management risk which brought by the severe fluctuation of copper price since the 2008 financial crisis. In order to occupy initiative in business activities and reduce the influence to the enterprise caused by the copper prices volatility, the copper processing enterprises choose to use the hedging instruments to avoid the impact on enterprise brought by copper prices fluctuations.This paper expounds the development process of hedging theory and the importance of hedging to the development of the enterprise, then combs the hedging strategies and business processes of JT copper tube company, analyzes the risk exposure, and points out all sorts of problems that need to be award of in the actual business of hedging, and further studies the hedging strategy and optimization scheme in order to help the future hedging business of JT copper tube company and provide the guidance and reference for the hedging business of other copper processing enterprises.