Sansteel MinGuang to launch futures hedging program

Sansteel MinGuang Fujian (SZSE:002110) announced its plan to initiate futures hedging operations, primarily to stabilize earnings by hedging against price fluctuations in raw materials and steel products. The total investment in the program will not exceed RMB 300 million in margin deposits. At no point shall the total contract value exceed RMB 1.5 billion. The hedging activities will be confined to futures contracts traded on domestic exchanges related to the company's existing production, including products like rebar, iron ore, coking coal, and others. The board of directors approved the plan on February 18, 2025, with an effective period of 12 months, during which the limit can be recycled. The company emphasized that these are hedging operations, not speculative ones. The strategy focuses on covering short positions when inventory is high and facing selling pressures, or taking long positions when raw material inventories are low and supply concerns exist. The program will utilize Sansteel MinGuang's own funds, rather than raised capital or bank credit.