Qingdao Huayicheng Li Feng: Short fiber futures help state-owned enterprises get out of business difficulties

At the PTA and short fiber sub-forums of the 2021 China (Zhengzhou) International Futures Forum, Qingdao Huayicheng Materials Co., Ltd. (hereinafter referred to as Qingdao Huayicheng ) General Manager Li Feng said that the listing of short fiber futures has brought new benefits to chemical fiber manufacturers and textile companies across the country, but also brought new challenges to the traditional trade model. Based on this, Qingdao Huayicheng has Relying on short fiber futures, we focus on the operating pain points of state-owned enterprises and state-owned enterprises, provide them with personalized services, and help state-owned enterprises develop steadily.

“For example, the quality of the staple fiber products of a state-owned enterprise operated by our company as an agent is relatively stable and has a good reputation among users. Textile companies in Shandong and Hebei guaranteePolyester yarn’s dyeing, strength, neps and other indicators are stable. When using polyester staple fiber, most of them will use 2-3 brands. Mark. Due to the stability of product quality and regional advantages, textile companies in Shandong and Hebei will generally give priority to using this state-owned brand. After the listing of short fiber futures, delivery brands such as Huahong and Sanfangxiang are priced in the futures market. Under the promotion of Sinopec, customers can purchase at low prices. Because state-owned brand products are non-deliverable brands, they do not participate in the futures market, and the market sales price is based on Sinopec’s weekly guide price to guide sales. During a period of time, the product loses its price Competitive advantage.” Li Feng said.

In fact, when short-fiber futures plummeted in March and April this year, the point-price transaction prices of chemical fibers from private enterprises such as Huahong and Sanfangxiang were about 200 yuan/ton cheaper than those of state-owned brand products. Li Feng said that textile companies have reduced the number of state-owned brand products purchased due to higher raw material costs. We are facing the loss of customers using state-owned brand products, and it is difficult to complete the number of contracts signed every month.

“Based on this situation, we actively communicated with downstream cotton spinning mills. After understanding the reasons clearly, our company successively brought us and cooperation partners in mid-April based on market conditions, customer demands and analysis of market price trends. All contracts signed by state-owned enterprises in May were hedging, and the basis price difference of state-owned enterprise brand products was implemented to customers. Customers can purchase the brand at the price of private enterprises in the same period, which not only stabilized the previous old users, but also developed new customers. Li Feng said .”

In addition, Li Feng said that since the point-price sales model benefits downstream customers, the monthly contract volume signed with cooperative state-owned enterprises cannot meet market demand. On the premise of completing the contract volume, we will buy out Tianhua’s supply from cooperative state-owned enterprises for 300 yuan per month. —500 tons, put on the market through a point-price model, which not only solved the price needs of downstream customers, but also improved the market competitiveness of its product prices. At the same time, it overfulfilled the contract volume with cooperative state-owned enterprises, with an overfulfillment rate of 60%.

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