The hottest steel hedging is favored by builders,

2022-08-17
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Steel hedging is favored by builders: the first "eat crabs"

"in the past, steel mills and steel traders hedged in the futures market. Now our builders are also going to enter the futures market for hedging." Zhang Xiaofang, the head of a construction company in Shenzhen, told futures that he would be the first builder in Shenzhen to "eat crabs". According to reports, Zhang Xiaofang has undertaken several construction projects. Only Shenzhen Shajing Tianhong Mall (11.15,0.18,1.64%) under construction needs nearly 10000 tons of steel. "In the past, steel was purchased from steel traders only when the construction site needed steel. But this method is like gambling. Steel prices fell and earned, and rose and lost. Sometimes within a month, tens of thousands of tons of steel are common in the market. There are two kinds of ball screws and trapezoidal screws, with fluctuations of several million yuan, and the cost is difficult to control"

at present, many steel production enterprises and trading enterprises regard futures as an important risk control tool for enterprises, and have obtained good benefits from it. In the process of dealing with these steel enterprises, Zhang Xiaofang realized that rebar is the construction material that has the greatest impact on the company's operation, and the cost of rebar can be locked through rebar futures contracts; In addition, the existence of leverage mechanism can also reduce the amount of funds. "This will be of great help to the operation of the company". However, many builders have expressed doubts about how to evaluate whether hedging has earned or lost

"to evaluate hedging, we need to combine futures and spot accounts." Huang Fulong, a researcher of CSI futures metals, explained that the essence of hedging is to stabilize the business performance of enterprises. He hoped that the purchase of experimental machines should be carefully re selected. The evaluation standard should be whether it can effectively help enterprises lock in costs and stabilize profits. It should not be based solely on the profits and losses of futures or spot accounts. Quilting machine

it is understood that the current rebar futures contract price is about 3600 yuan/ton, while the spot price of tertiary rebar in South China is about 4000 yuan/ton. "I think the price of 3600-3 is expected to be 700 yuan/ton by the end of 2018 or the beginning of 2019, and nearly 10000 tons of rebar will be required on the construction site in the next year, so I am ready to buy hedging in the futures market in the near future." But Zhang Xiaofang is a little uncertain. Is it the right time to buy now? What should we pay attention to after buying

in this regard, wangpengfeng, manager of the steel Department of China International Futures, said that in November, railway and infrastructure projects will start one after another, and the downstream demand for steel will be released. In addition, near the end of the year, the increased willingness of downstream demanders to prepare goods will also support the steel price. Now it is a better time to hedge the purchase of rebar

"the time to buy hedging has come, but investors should be aware that any type of futures trading is risky before carrying out relevant operations." A futures person emphasized that the margin system can reduce the amount of funds, but when the market changes greatly, if the vast majority of funds in the enterprise margin account are occupied by trading margin, and the trading direction is opposite to the market trend, additional margin will be required

"in addition, futures contracts have a term, and they face delivery when the contract expires. We should fully consider the delivery risk." Li Qibao, steel analyst of Changjiang futures, added that the demand for rebar on the construction site is a continuous process, and there may be the need to move the warehouse. When necessary, we should make a warehouse moving plan in advance to reduce the losses caused by the warehouse moving

source: Futures

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