Make good use of steel futures to enhance risk resistance

Galaxy futures Vehicle Red Cloud Wang Mingyi Zhou Weijiang Iron and steel industry is an important pillar industry of national economy, it involves a wide range of industries, high industrial relevance and consumption, and plays an important role in economic construction, social development, fiscal taxation, national defense construction and stable employment. To help the steel industry survive the economic crisis, the State Council unveiled the plan for adjustment and revitalization of the steel industry.　　Almost at the same time, China Securities Regulatory Commission approved Shanghai Futures exchange listed trading of steel futures, varieties including rebar and wire. As we all know, the futures market has the function of hedging and price discovery.　　Steel industry combined with steel futures listed, it can not only effectively help the steel production enterprises to lock down the production cost, realize the expected profit, avoid the sharp fluctuation risk of steel price, but also help to accelerate the structure adjustment of the steel industry, promote the industrial upgrading and realize the goal of promoting the smooth operation and healthy development of the steel industry in the national planning. China is a big country of steel production and consumption, the production of crude iron 13 consecutive years in the world first. Since entering the new century, China's iron and steel industry has grown rapidly, with annual growth of 21.1%. 2008, crude steel production reached 500 million tons, accounting for 38% of global production, direct export of 60 million tons of crude iron, accounting for World trade volume 15%. However, in the second half of the 2008 since the crisis, not only the overall profit of China's steel industry declined sharply, but also the adverse situation of the whole industry losses.　　According to the China Iron and Steel Industry Association released 71 large and medium-sized steel Enterprises data show: 2008 years, the overall loss of 47.99 billion yuan, the same period last year to achieve a profit of 32.09 billion yuan; Through careful study of the causes of the overall loss of steel industry, in addition to overcapacity, innovation is not strong, weak resource control and other reasons, but also with the lack of risk hedging mechanism, steel enterprises can not pass the risk of falling prices in a timely manner closely related.　　As the capital market, the futures market is an efficient and transparent market established by the Government according to the principle of "openness, fairness and impartiality", which can be used to arrange production and lock production cost to realize the expected profit. In the face of this once-in-a-century financial crisis, the steel industry only to face the crisis, the Rapids Yong Jin can successfully saved the profit. By participating in the steel Futures, iron and steel enterprises are not only helpful to enhance their ability to resist risks, but also to carry out the adjustment and revitalization of the steel industry, accelerate the optimization and upgrade of the iron and steel industry, enhance the international competitiveness of the enterprises and build the Chinese steel power.