Risk management for pipe suppliers

Experts in the industry said that due to the more complex and severe external environment, the overall effective demand for structural steel pipe is relatively weak, resulting in the industry transformation and upgrading facing greater pressure, economic efficiency increase difficulty. However, with the increasing variety of steel industry chain futures, it will further help the industry risk management. Shi hongwei, director of the metallurgical industrial economic development research center, said in his speech that the steel industry is an important pillar industry of the national economy, providing a lot of materials for China’s infrastructure construction, but also a traditional industry. The steel industry needs transformation and upgrading, including not only the upgrading of environmental protection, equipment and product quality, but also the upgrading of the steel industry ecosystem. The combination of industry and finance is an important part of the steel industry upgrading. Therefore, it is necessary to promote the combination of industry and finance and accelerate the innovation of the combination of industry and finance.

China steel industry association, deputy director of the financial assets DiaoLi pointed out that this year import and export are decreased, steel prices fluctuate narrowly, and energy conservation and emissions reduction index continues to improve, but at the same time facing declining capacity release faster, steel pipe suppliers benefit is obvious. Looking ahead to 2020, the external environment will become more complex and severe, the effective demand for steel is generally weak, and the steel industry will face great pressure in transformation and upgrading. The prices of iron ore, scrap steel and coking coal, as well as environmental protection operation costs and logistics costs will remain high, making it difficult to improve the economic benefits of the steel industry.

Cheng weidong, director of the industrial development department of dazhong, pointed out that the risk of commodity price volatility exists objectively. With the development of China’s futures market, the role of derivatives in risk management has become more and more obvious. High-quality economic development requires the derivatives market.The function of price discovery and risk management in derivatives market can not only reduce the uncertainty in the production of square steel pipe and operation of enterprises, but also improve the efficiency of resource allocation.

After nearly 30 years development in China, the varieties of derivatives market system is increasingly perfect, derivatives market is steadily growing. For the steel industry, it has been listed rebar, iron ore, ferrosilicon, ferromanganese, stainless steel and other 10 varieties. Round steel pipe, soldering iron and other varieties are also actively planning; iron ore option listing step is getting closer and closer.

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Post time: Nov-03-2020
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