Author/Authors :
UÇKUN, Nurullah Eskişehir Osmangazi Üniversitesi - İktisadi ve İdari Bilimler Fakültesi, Turkey
Title Of Article :
AVOIDING PRICE RISK IN STAINLESS STEEL INDUSTRY: AN ANALYSIS OF THE AFFECTS OF CHROMIUM NICKEL CRUDE STEEL PRICES AND EUR/USD PARITY ON STAINLESS STEEL PRICE
Abstract :
It is not possible to take direct measures against consistently floating stainless steel prices by hedging through futures contrats since there is not an organized commodity exchange for stainless steel trade. This study aims to determine which factors and to what extend affect stainless steel price. The study will help stainless steel buyers in preparing financial programs in accordance with the purchase order timing and quantity. The study applies regression analysis to find out to what extend the crude steel, chromium, and nickel prices explain the price of stainless steel of 304 quality, mostly used in Turkey. According to the findings, independent variables crude steel, nickel, chromium prices and EUR/USD parity explain the dependent variable, stainless steel price by 88% and the model is statistically significant at signifance level of 5%.
NaturalLanguageKeyword :
Hedging , Commodity Exchange , Stainless Steel
JournalTitle :
Journal Of Social Sciences, Eskişehir Osmangazi University
