Sunday, December 22, 2013

Ore traders appeared in the crisis

Rely on the traditional way of trade to make money, does not sell high and buy low, but for the ore trade merchants, when there is a difference between buying and selling,RF/FF welding socket slip on flange so it's difficult to avoid price risk.But in an interview with reporters found that there have been an increasing number of traders, begin to use financial instruments to hedge risk.
For trade ShangWu after ray, really realize the function of futures, and earlier this year.He was at $150 a tonne, for 300000 tons of iron ore from Australia, when the ships is on his way to China, ore prices started to fall.At this time he felt the risk, quickly on the rebar futures made an empty list.Then iron ore prices fell to $127 a tonne, spot, but fortunately the short selling in the futures market to let him earn 200 yuan per ton on rebar, accounting down not only didn't lose money also made a lot of.
Shanghai yi complex investment company chairman Wu Fulei told reporters: at that time we have, this model (traditional trade) is crazy, almost everyone is in gambling market, our philosophy is we don't bet, basically we are forecasting a drop of may, we'll do the hedge, so that we can always maintain normal profits.
First futures trading let Wu Fulei tasted the sweets, then he formed his own professional financial team, started a new trade mode combined with spot trade.As October 18 listed on the domestic iron ore futures, futures market has formed a complete coal tar and steel plate, many traders have started to use financial instruments as a safe haven.
, said: shandong wanbao group chairman for China through the platform and the tools of technology futures, for better cost of steel lock, help steel mills to reduce costs, avoid risk.

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