News summary
Luoyang Molybdenum subsidiary IXM fully hedging strategy responds to market concerns about COMEX copper short orders lossesnftrevolandcomDoubts, emphasizing that risks are controllable, and at the same time reminding the spot market of the risk of closing positions.
Newsletter text
Luoyang Molybdenum subsidiary IXM effectively hedges price risk
Recently, in response to market rumors about IXM's short orders in the COMEX copper market, Luoyang Molybdenum Industry clarified through an announcement that its wholly-owned subsidiary IXM, as an important global commodity trader, implements 100% hedging operations on all metal trade and strictly manages price risk.
IXM does not engage in speculative trading and risks are controllable
The announcement further stated that the transactions IXM engages in are diversified hedging and arbitrage strategies, the risks are completely under control, and it has not participated in any form of speculative activity.
Metal traders operate routinely, and market participants analyze risks
Market analysis pointed out that holding short positions is one of the regular trading strategies of metal traders, especially when market prices are expected to fall, hedging by selling futures contracts to reduce spot market risks.
Hedging strategies reduce operational risk, but require careful management
However, unexpected large price increases may cause short positions to face losses, so IXM needs to pay extra attention to risk management when holding short positions.
Traders keep inventory and pay attention to delivery risks
The market reminds traders that they should have regular inventories to deal with the risks brought by price fluctuations. If there are not enough futures delivery products, they may face the risk of being forced into positions.
The risk of COMEX copper tight positions has eased and the market has stabilized
According to analysis, the COMEX market spread has returned to normal levels, the risk of forced positions has been significantly reduced, and the market has gradually stabilized.
IXM has stable performance and a mature risk control mechanism
As the world's third largest non-ferrous metals trader, IXM has a mature risk control mechanism and can effectively respond to market risks. Last year, the trade volume of concentrate products and refined metal products was significant, with net profit reaching 910 million yuan.
Luoyang Molybdenum's share price suffers, but its financial position is solid
Despite the impact of market news, Luoyang Molybdenum's share price has recently fallen, but the company's financial situation is stable and it has the ability to cope with market fluctuations.
Different reasons for short positions and different coping strategies
The market notes that IXM's short position encounter is different from Qingshan Group's short position event. IXM's response strategy focuses on risk control and hedging strategies.
Market dynamics and the importance of counterparties
Market participants remind that paying close attention to market dynamics, diversifying investments and selecting reliable counterparties are the key to reducing investment risks.
COMEX copper inventories fall, and the market may continue to be strong
Experts analyze that the decline in COMEX copper inventories and transportation problems may cause copper prices to remain strong unless there are changes in the market or policy interventions by exchanges.
Market advice should be treated with caution, and spot tension has not eased
The market advises investors to be cautious about this because the spot tension has not yet been completely alleviated and it will take time to replenish the supply.