DocumentCode
571360
Title
An Exploration on Cross Hedging Method of Chinese Steel Enterprises for Spot Iron Ore and Enlightenments
Author
Qiao, Han ; Mao, Yingming ; Liu, Xiang ; Zhao, Yingxue
fYear
2012
fDate
18-21 Aug. 2012
Firstpage
172
Lastpage
176
Abstract
In order to transfer the huge risk of iron ore spot market, to begin with, this paper analyzes the relationship between spot and future price of rebar and presents that rebar futures (RB) in Shanghai Futures Exchange (SHFE) can reflect concerning information efficiently. Secondly, based on the close relationship between SHEF RB settlement price and iron ore price, it attempts to hedge the risk in spot iron ore with RB futures. Besides, based on the study of this paper, it gives some recommendations.
Keywords
minerals; pricing; rebar; risk management; steel industry; stock markets; Chinese steel enterprises; RB futures; SHEF RB settlement price; Shanghai Futures Exchange; cross hedging method; iron ore price; iron ore spot market; rebar futures; spot future price relationship; Contracts; Economics; Educational institutions; Equations; Iron; Pricing; Steel; RB futures; cross hedging; steel enterprises;
fLanguage
English
Publisher
ieee
Conference_Titel
Business Intelligence and Financial Engineering (BIFE), 2012 Fifth International Conference on
Conference_Location
Lanzhou
Print_ISBN
978-1-4673-2092-4
Type
conf
DOI
10.1109/BIFE.2012.44
Filename
6305104
Link To Document