铁矿石市场地金融化演变和我国企业地应对之策.docxVIP

Abstract In 2010, the three big iron ore mines implemented quarterly pricing mechanism to instead of the traditional annual price, which begun from the year 1980. Just a few months later, they forced clients to accept a new index pricing mechanism again. With the high reliance on the three mines, Chinese steel enterprises only could accept it passively and had no rights to deny. Because of the increasingly high price of the iron ore, the profits of Chinese enterprises fall sharply. Indexation pricing makes iron ore show a growing number of financial attributes. The financial groups hide behind the three big mines created lots of financial derivative instruments, such as iron ore swap, to manipulate prices and make profits. As a result, the financialization is inevitable. Faced with the new business environment, Chinese enterprises will be washed out if they can only make profit by the traditional way like buy low and sell high. Therefore, how to survive in the competition, how to use financial derivatives to avoid risks, has become the main problems need to solve in front of Chinese steel enterprises. In order to make Chinese steel enterprises have more competitive advantages, this paper describes the origin of the iron ore pricing mechanisms and takes Singapore Exchanges iron ore swap as an example to teach the Chinese enterprises how to use the financial derivatives and provide them an arbitrage model. Most importantly, there are lots of actual cases in this paper and Chinese steel enterprises can know more about the financial derivatives’ advantages and disadvantages and get new management ideas through the analysis of them. The new innovation is bound to create new problems. It is especially important to avoid risks while using the financial derivatives, because of the high risk, leverage and complexity. So this paper will propose countermeasures from both enterprise and steel industry’s view to strengthen Chinese enterprises’ competitiveness and promote the he