The Community for Technology Leaders
2012 Fifth International Conference on Business Intelligence and Financial Engineering (2012)
Lanzhou China
Aug. 18, 2012 to Aug. 21, 2012
ISBN: 978-1-4673-2092-4
pp: 172-176
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.
INDEX TERMS
Iron, Steel, Contracts, Economics, Equations, Educational institutions, Pricing, cross hedging, RB futures, steel enterprises
CITATION

H. Qiao, Y. Mao, X. Liu and Y. Zhao, "An Exploration on Cross Hedging Method of Chinese Steel Enterprises for Spot Iron Ore and Enlightenments," 2012 Fifth International Conference on Business Intelligence and Financial Engineering(BIFE), Lanzhou China, 2012, pp. 172-176.
doi:10.1109/BIFE.2012.44
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