Case Study On The Hedging Of Purified Terephthalic Acid Futures In HY Company

China’s chemical industry has a huge annual output value and plays a pivotal role in the national economy,but the concentration of enterprises in the chemical industry is not high and most of them are small and medium-sized companies.The change of the price of chemical raw materials has a great impact on the business performance of chemical enterprises.The use of hedging to lock the cost of raw materials or the price of finished products is an effective way for enterprises to deal with price risks,but at present,many enterprises are not mature enough to use the hedging strategy.Many scholars at home and abroad study hedging strategy,and the theoretical effect is very good,but its strategy model considers many factors,and the practicability for small and medium-sized enterprises is not strong.Therefore,it is of great practical significance to study the hedging strategy which is close to the actual operating conditions of small and medium-sized chemical enterprises in China and has strong applicability.Article according to the actual situation of HY company and the basic principle of hedging of HY company is currently using purified terephthalic acid(PTA)(hereinafter referred to as the PTA)hedging strategy analysis,and find out HY company by means of simulated operations in through the futures market to carry out hedging business strategy,to market,some problems of the operating costs,etc.Through the analysis and research of these problems,combining the hedging and enterprise risk management theory,the basis change and inventory management of the hedging theory,according to the actual operating conditions of HY company and the PTA futures contract market trend characteristics,To the company through the futures market to carry out hedging business to put forward the improvement strategy and targeted opening and closing scheme,stop loss scheme and adverse price changes in response to the measures.At the same time,this article through to the improvement of hedging strategy and strategy of the company’s existing in the cost of capital,hedging effect of contrast,found that improvement of hedging strategy to achieve the better effect of hedging,and the more close to the actual situation of production and operation of the company,from the aspects of hedging business more perfect the company’s production and business operation strategy,effectively improve the company’s business performance,It can play a positive role in the stable operation and sustainable development of the company.The main contributions of this paper are: To chemical enterprise in the PTA spot products and its corresponding futures contracts for hedging strategy analysis and research of the business,and in combination with the related hedging theory and enterprise actual situation proposed on the basis of the basis change,the improvement of inventory management strategy,and also proposed according to the specific futures varieties kaiping positions and stop solution accordingly.It not only improves the company’s means to avoid the risk of adverse price changes,but also improves the effect of its hedging business.The hedging strategy research in this paper is to select small and medium-sized enterprises in the chemical industry as the case,so most of the small and medium-sized enterprises in the industry can also,according to their own actual situation and risk exposure,on the basis of HY company to establish hedging strategy thinking process to establish a suitable hedging strategy.