Innovative model serves the industrial chain and promotes the steady development of the chemical fiber industry
Recently, data released by the China Medium-Term Association shows that the four major operating indicators of the futures industry have increased significantly in 2021, and the overall profits of 150 futures companies across the country have increased by nearly 60% year-on-year, reflecting the good development trend of the futures industry. At the same time, the overall profit of the domestic chemical fiber industry in 2021 has improved significantly compared with 2020. The futures market has played a significant role in promoting the development of the chemical fiber industry, profoundly changing the traditional trade form of the polyester industry, and effectively improving its pricing efficiency and risk management level. Hedging, basis trading, etc. have been deeply embedded in the daily production and operation of polyester upstream and downstream enterprises.
Today, 95% of PTA production companies and more than 80% of polyester companies have participated in futures. Domestic polyester industry enterprises represented by Hengli Petrochemical (600346) and Yisheng Petrochemical have rapidly become bigger and stronger, and have obvious international competitive advantages; internationally, BP, Glencore and Mercuria are increasingly More and more overseas industrial enterprises are also participating in the use of PTA futures. At the same time, the futures industry continues to improve and develop, deepening the polyester industry, enriching derivatives, innovating service models, building a “moat” for the polyester industry, and assisting the high-quality development of the chemical fiber industry.
The best “TA” is frequently praised by the industry
PTA futures is one of the earliest chemical futures products listed in China. In recent years, the basis spread model has accelerated and matured. Currently, more than 95% of the goods in circulation in the PTA market are priced using the “futures + basis” approach. Affected by the market environment, polyester industry companies are highly involved in futures.
As of the end of 2021, my country’s PTA production capacity has increased seven times compared with the beginning of PTA futures listing in 2006, and PTA futures positions have also increased from 100,000 lots to 2 million lots. Data from the Zhengzhou Commodity Exchange shows that in 2021, the positions held by PTA and short-fiber legal persons accounted for 70.52% and 61.80% respectively, a year-on-year increase of 23.39% and 96.07%. The participants in the futures market are also more diversified, with both upstream and downstream enterprises in the industrial chain participate actively.
It is worth mentioning that while the enthusiasm for participation in the polyester industry is rising, the function of PTA futures has also been generally recognized by the market.
“For Hengli Petrochemical, PTA futures can be used as a sales tool. Active participation in PTA futures can help companies lock in forward processing profits, make PTA sales more flexible, and avoid systemic risks. The company’s sales are currently based on The PTA futures price is mainly determined, and futures are used for cooperative hedging to lock in processing profits and avoid risks.” The relevant person in charge of Hengli Petrochemical told reporters.
In 2021, PTA, MEG and other varieties have entered the stage of industrial integration and upgrading. During the production cycle, the industry’s shuffle is accelerating, and backward production capacity is constantly being eliminated, which will inevitably reduce the processing fee space. “In order to ensure normal operations and minimize losses, PTA companies seize the opportunity to sell PTA and buy raw materials during changes in market conditions to lock in processing fees. Hedging is performed when the processing fee level is low to avoid excessive processing fees. Low prices lead to losses and affect the normal operation of production equipment. When downstream demand deteriorates and the price of crude oil or upstream raw materials drops sharply, hedging can be avoided by cooperating with large trading companies to avoid losses from product price drops.” said the above-mentioned person in charge.
According to Liu Dewei, general manager of Xiamen International Trade (600755) Petrochemical Co., Ltd., in 2021, nearly 90% of companies in the polyester industry chain will actively participate in futures, and some companies that are good at research have begun to combine the futures prices of raw materials PTA and ethylene glycol. By locking in annual sales contracts with the processing fee model, the cooperation between manufacturers and end customers is more stable and flexible.
In his view, the most positive impact of the futures market on the polyester industry chain is reflected in the fact that industry chain companies predict processing fees through effective price expectations, strengthen forward product sales, and then organize production, objectively shifting operating risks to the The upstream and downstream transmission has completely changed the situation before 2020 in which “foreign refining and chemical plants were experiencing overwhelming profits, while domestic PTA and downstream companies were struggling.”
“Polyester factories use hedging to lock in processing profits, avoiding losses from falling raw material prices and effectively adjusting operating rates. Especially when the spot prices of PTA and MEG fell sharply in the fourth quarter of 2021, the combination of futures and spot prices has played a significant role in cutting prices. The role of peaks and valleys has reversed the passive situation of losing half a year’s profits in one month in the polyester industry before 2018.” Liu Dewei said that in addition, supply chain companies and traders participated in the futures market in large numbers, which objectively also played a role in balancing and the role of regulating warehousing and optimizing logistics in East and South China.
Liu Dewei said that while the production capacity of the entire industry chain has increased by nearly 7%, the inventory of the entire industry chain has only increased by 2%, which is good evidence. The reduction of capital occupation and financial cost of the entire industry chain has further stabilized my country’s polyester industry chain’s leading position in the world.
Working together to contribute futures power to the chemical fiber industry
With the development of the futures market, futures operating institutions continue to design effective “futures plans” for enterprises, and many risk management companies have also transformed into new industrial service providers that provide comprehensive solutions. and other models of service industry enterprises, contributing “expectations””Strength”.
The reporter learned that as a service entity, Yongan Capital’s performance in the polyester sector has increased in 2021, among which short fiber is the biggest highlight. In 2021, the trade volume of Yongan Capital Staple Fiber has grown rapidly, increasing five times compared with 2020.
“During the outbreak of the epidemic in some areas of Zhejiang at the end of 2021, Yongan Capital fulfilled its responsibility to ensure supply for downstream factories, and during the epidemic mitigation stage, it helped short fiber factories lock in relatively high processing fees and stabilized the short-term supply chain. The profit and production of the fiber factory throughout the year.” Fei Yang, the short fiber futures manager of Yongan Capital, said that due to the existence of the futures price point model, Yongan Capital can deliver PTA, MEG and other raw materials to polyester factories in advance. During the impact of the epidemic, During the logistics process, the polyester factory had already prepared enough raw materials, and was conducting price points when raw material prices fell due to the epidemic to further reduce its own costs. After the raw material prices fell, it used secondary price points to reduce the procurement costs of downstream factories. , playing the role of “lubricant” in the industry.
It is understood that in recent years, affected by disturbances from macro factors and large fluctuations in raw material prices, the demand for hedging from polyester companies has increased. In response to these needs, Yongan Capital has made further innovations in its service model.
Fei Yang told reporters that based on the traditional futures spot price, post-price, lock-in and other business models, Yongan Capital has innovatively launched new business models such as locking corporate processing fees and rights-inclusive trade, further stabilizing Corporate profits, or allowing the company to exchange a fixed premium for absolute risk-free through options. These new business models can further promote the stable operation of polyester companies.
Futures operating institutions aim to serve the real economy, take research capabilities as the core, and drive comprehensive business development. Among them, Tianfeng Futures has shown the characteristics of specialization and informationization in serving the polyester industry.
“At present, the polyester industry chain presents an integrated development pattern, and polyester industry customers have increased research demands for raw materials such as upstream crude oil, naphtha, and PX. In order to better serve entity enterprises, our research institute provides services for the polyester industry Customers provide horizontal and vertical subject research services, and at the same time build a set of information industry data systems to provide efficient information services for industrial customers’ raw material stocking and inventory management.” Liu Siqi, an analyst at Tianfeng Futures, told reporters that in 2021 Tianfeng Futures The scale of wind futures customer equity increased by 71% year-on-year, the number of PTA and short fiber industry customers increased, and the proportion of PTA futures business increased.
In recent years, the exchange has also been focusing on how to better serve polyester industry enterprises: by closely tracking the spot market, fully understanding the needs of industrial customers in a timely manner, timely modifying rules and regulations, expanding delivery brands and regions, and truly realizing “Think about what the enterprise thinks, be anxious about the enterprise’s concerns, and solve the enterprise’s difficulties”, break through obstacles in the delivery process, ensure smooth and unhindered delivery, and play a special role in special times; continuously enrich the varieties of the industrial chain, and provide upstream and downstream enterprises in the polyester and textile industry chain Provide a diversified portfolio of risk management tools, as well as a variety of supporting services such as warehouse receipt financing.
“In the next step, ZCE will increase the research and development of futures products such as PX, bottle flakes, and filament upstream and downstream of PTA, enrich financial hedging tools for industrial chain enterprises, help smooth the domestic cycle, and continue to carry out industrial services and Market cultivation supports enterprises with risk management needs to directly or indirectly use futures tools to stabilize production and operations and help ensure supply and stable prices.” said the relevant person in charge of Zhengzhou Commodity Exchange.
AAA
Disclaimer:
Disclaimer: Some of the texts, pictures, audios, and videos of some articles published on this site are from the Internet and do not represent the views of this site. The copyrights belong to the original authors. If you find that the information reproduced on this website infringes upon your rights and interests, please contact us and we will change or delete it as soon as possible.
AA
