The first short fiber futures contract PF2105 successfully completed delivery

Recently, the first short fiber futures contract of Zhengzhou Commodity Exchange, PF2105, successfully completed delivery. According to the reporter’s understanding, a total of 11,930 warehouse receipts were registered for short fiber futures, and some warehouse receipts were canceled before delivery. In the end, a total of 4,896 warehouse receipts participated in the first delivery, with a delivery volume of 24,480 tons, including 95 tons for rolling delivery and 24,385 tons for centralized delivery. Units participating in the delivery include Jiangyin Hongkai Chemical Fiber, Zhejiang Sibang Industrial, Yongan Capital and other factories. At this point, the first short fiber futures contract has completed the entire transaction and delivery process, laying a solid foundation for the stable development of short fiber futures.

All parties are fully prepared to ensure smooth delivery

On October 12, 2020, short fiber futures were listed on the Zhengzhou Commercial Exchange. Short fiber futures have been running smoothly in the past six months since they were launched, with high market attention. The average daily trading volume and average daily open interest reached 260,000 lots and 160,000 lots respectively, showing high activity. The correlation between the main contract and the spot price reaches 0.92, the futures and spot market has a high degree of fit, and the price discovery function works well. Zhengzhou Commodity Exchange continues to carry out various forms of market cultivation activities, and has held online and More than 10 offline market training sessions were held, with a total of more than 16,000 people trained. The structure of the short fiber futures market continues to be optimized, with corporate customers accounting for more than 60% of positions, and manufacturing companies, trading companies, and processing companies deeply participating.

Short fiber futures adopt a factory-wide delivery method, which on the one hand helps reduce delivery costs and improve delivery efficiency; on the other hand, it ensures the quality of the delivered goods and reduces storage deterioration risks and ensure delivery quality.

It is understood that before the first delivery month, the Zhengzhou Commodity Exchange took multiple measures to ensure smooth delivery channels: First, it introduced traders’ factories and set the delivery locations to Jiangyin, Xiaoshan, and Changle areas, which not only solved the problem of non-standard delivery The problem of factory warehouse brands being difficult to deliver has effectively revitalized the social warehouse resources in Jiangyin, Xiaoshan and Changle areas; secondly, 6 short fiber delivery brands have been expanded to provide more brand choices for pickers; thirdly, 14 more stores have been added The short fiber delivery factory will expand the credit warehouse receipt quota of 130,000 tons, further expand short fiber futures delivery channels, and fully tap the market delivery potential; fourth, conduct online and offline rule training for market participants, quality inspection agencies, and delivery factories. Standardize the delivery process and promote the efficient operation of warehouse receipt registration, cancellation and delivery links.

Short fiber manufacturer Jiangyin Hongkai Chemical Fiber participated in the first delivery of short fiber futures as a seller. “Thanks to the timely guidance and service of Zhengzhou Commercial Exchange, our participants quickly became familiar with the relevant operating procedures. In addition, Zhengzhou Commercial Exchange conducted many investigations into the problems encountered after the listing of short fiber futures, and analyzed the problems encountered by factory warehouses. Only by patiently answering and guiding the questions raised, the company can successfully complete the final delivery.” Hu Xinmin, the company’s relevant person in charge, said, “In order to ensure the smooth progress of the first delivery, we have improved the transaction methods, funds, warehousing, Full preparations have been made in terms of product quality, product inventory, and related talent training.”

As a factory warehouse, Zhejiang Sibang Industrial also made full preparations before delivery. “For the first delivery of short fiber futures, safety comes first.” Ren Qifeng, the company’s business manager, said that in order to ensure the delivery and delivery capabilities of the factory, the company found a number of third-party warehouses with good qualifications and had the goods shipped before registering the credit warehouse receipt. It is stored in a third-party warehouse to ensure that the goods are available, the goods are stored in a good environment, and the delivery is smooth.

The reporter learned that during the delivery process, some short fiber factories were less willing to issue warehouse receipts due to their own storage capacity and financial problems. As a bridge connecting the futures market and upstream short fiber factories, risk management companies play an important role. “The risk management company has a letter of guarantee that can be used, which can replace the factory’s warehouse receipt to a certain extent and solve the delivery problem. The risk management company is familiar with the delivery business, and some businesses such as cash in advance, post-price point, and pending orders can also be very good. We will advance accordingly,” said Fei Yang, current manager of polyester futures at Yongan Capital.

“Compared with other polyester varieties, the process of generating short fiber warehouse receipts is clearer.” In Fei Yang’s view, since it is delivered by the entire factory, the channels for generating warehouse receipts are controllable, and the short fiber warehouse receipts generated are The brand is also controllable. “If there is a quality problem, the responsibility is relatively clear, and when canceling the warehouse receipt, the holder can choose different brands and different regions for cancellation, which better solves the problem of warehouse receipt standardization.”

Improve corporate satisfaction and actively explore new models of risk management

According to a reporter from Futures Daily, after the listing of short fiber futures, through continuous learning and exploration, most industrial enterprises have gradually accepted this new tool and began to use short fiber futures to hedge risks.

According to Pang Chunyan, analyst at SDIC Anxin Futures, after short fiber futures are listed, traders’ experience in participating in other chemical futures can be directly applied to short fiber futures. “The performance of manufacturing companies is relatively conservative, but from the perspective of industry development prospects, the short fiber industry will face the centralized commissioning of large-scale equipment in the future, and supply and demand will shift from tight to surplus. Manufacturing companies must…��Be prepared for the challenge. ”

In Hu Xinmin’s view, short fiber futures provide futures traders with the opportunity to purchase spot goods for hedging in the futures market, and then sell at a fixed price when the basis returns. It also provides short fiber factory product inventory futures opportunities. Hedging, cash hedging of raw material procurement by downstream enterprises and cash hedging of short fiber processing costs provide good operational opportunities.

According to reports, at the beginning of the listing of short fiber futures, the basis fluctuated between -600 yuan/ton and 300 yuan/ton, and there were good opportunities for spot operations. After the Spring Festival, as the price of short fiber surged and fell back, futures prices adjusted rapidly, and the processing difference of short fiber disk fell from a high of more than 2,000 yuan/ton, which was a good opportunity for manufacturing companies to sell hedging. “Since the end of April, short fiber spot prices have risen at a premium to futures. For downstream processing companies, purchasing short fiber through futures channels can reduce raw material procurement costs.” Pang Chunyan said.

“Most of our transactions with polyester companies adopt futures price point, post-point price and other models, and futures pricing has become the mainstream.” Fei Yang said that Yongan Capital has signed processing fee lock-ins with a number of short fiber factories. The contract has achieved good results in stabilizing enterprise production.

“The delivery process is smooth, and the spot price has effectively returned, giving traders great confidence in basis trade.” Ren Qifeng said that with the increase in basis traders, short fiber factories and downstream yarn mills have begun to accept basis trades. Price purchasing and selling model.

“At present, the basis of short fiber is weak, and it is safer to do spot futures trading. The conventional operating idea of basis traders is to build a position at a low price difference when the market rises, and ship after the basis strengthens when the market falls. “In Ren Qifeng’s view, through the combination of futures and cash, traders have effectively optimized the inventory and profits of the upstream and downstream of the industrial chain, creating value for the industry.

Respondents generally believe that with the increase in market participants in the future, industry chain companies will further improve their understanding and application capabilities of short fiber futures, and the operation of short fiber futures will be more stable, with its price discovery and hedging functions It is expected to be better played.

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