Research On Risk Management Of Steel Enterprise Projects Based On Hedging

Iron and steel industry is the important foundation of the national economy industry,is to realize the industrialization of supporting industry in China,is an integral part of the infrastructure.In the country of global crude steel production capacity in recent years,China's crude steel production has been in the position of the number one in global crude steel production.At the same time,the domestic iron and steel enterprises because of the country's demand for its downstream end strict regulation of the real estate industry,in a very difficult situation.In this particular case,the iron and steel enterprises urgently need a new safety tools to meet production risk in the project.And the price discovery function of futures markets is unique and the risk aversion function,gives a new iron and steel enterprise safety channelThis paper introduces the basic theory of risk management,this paper expounds the project risk identification and response,the relevant concepts of the evaluation,and describes the related concepts of hedging theory.In this paper,from A steel company received B to start construction order,detailed in A steel company in the production program,and the current situation of production and operation of risks and difficulties,through identify and evaluate the potential risk factors in the project,project risk management theory as the starting point,combining with the characteristics of the project,specific and puts forward some measures for dealing with project risk,especially how to reasonable use futures as A tool for hedging to deal with the raw material inventory depreciation risk,improve the competitive ability of the enterprise itself.In the concrete project of using case analysis,this paper USES the method of project risk management related analysis,targeted policy are proposed according to the project risk characteristics,introduces the use of futures hedging method to deal with the risk of stock price.Based on the project risk management as the research basis,through the risk analysis and identification,put forward concrete project,the risk of and put forward the risk countermeasures and the suggestion,make the iron and steel enterprises to realize its use futures hedging to evade risk of price fluctuation is very feasible and effective,promote the enterprises to actively participate in futures markets and active,to improve their market competitiveness.