Baosteel to launch financial derivatives for 2025

Baosteel (SSE:600019) announced its plans to engage in financial derivatives trading for 2025 to hedge against foreign exchange and commodity price volatility. The program focuses on mitigating risks associated with its import and export activities, as well as raw material procurement. The approved trading will cover a range of currencies including CNY, USD, EUR, JPY and AUD, alongside interest rates, and commodities like iron ore (up to 8 million tons), fuel oil (100,000 tons), hot-rolled coil (3.76 million tons), nickel (3,000 tons), coking coal (1.333 million tons), coke (90,000 tons), zinc (108,000 tons), tin (2,961 tons), copper (1,200 tons), manganese silicon (19,000 tons), silicon iron (10,760 tons), and thermal coal (155,000 tons). The board of directors approved the derivatives strategy. The company will use its own funds, and not raise additional capital. To manage risks, Baosteel will adhere to strict risk control measures, and separate execution from management oversight.