Spot export volume hit a new high in the first half of the year, and more overseas companies participated in PTA futures
Adjustments to trading margin standards and price limits during Labor Day 2021
Since this year, my country’s PTAexports have shown a sharp increase. From January to May, my country’s PTA export volume reached 1.117 million tons, a year-on-year increase of 233.07%. At the same time, the PTA futures market is becoming increasingly attractive to foreign investors, and the international influence of PTA futures is increasing day by day.
Increase in export volume may become the norm
Data released by China Customs shows that in February and March this year, my country’s PTA exports reached 196,600 tons and 338,700 tons respectively, setting new record highs and much higher than the average monthly export level of 70,600 tons in 2020. From January to May this year, my country’s PTA export volume reached 1.117 million tons, a year-on-year increase of 233.07%.
The reason why my country’s PTA exports have increased significantly this year is partly due to changes in market supply and demand, and partly because the container and shipping logistics cycles have lengthened, which has intensified the demand of overseas companies.
China Base Group actively participates in the PTA export business. “PTA exports have the characteristics of ‘big demand, urgent goods, and high requirements’. PTA has dozens or even hundreds of cabinets for packing and warehouse space requirements, which requires exporters to have strong box-finding and booking capabilities. .” Dong Li, general manager of China Base Ningbo Polyester Division, said that since the end of last year, in the global shipping market, overseas companies often face the situation that goods cannot arrive on time, which has also given rise to more urgent orders. Although the profits are considerable, it also places higher demands on the exporters’ shipping schedule coordination and logistics and packaging capabilities.
Dong Li further said: “Before the May Day holiday, overseas companies’ enthusiasm for purchasing PTA continued to rise, and most of them were mainly for direct needs of downstream factories. At the same time, affected by the continued spread of the epidemic in the international market, the demand for foreign petrochemical equipment Construction starts have been at a low level, but the end demand market is gradually recovering.”
In this regard, GF Futures analyst Zhang Xiaozhen said that PTA devices in some countries and regions were affected by factors such as force majeure and low processing fees, and there were more maintenances in the first half of the year. Among them, from February to April, INEOS, Hanwha and other equipment were inspected; in May, Taekwang, Reliance and MCPI were inspected. Affected by multiple factors, the global market demand for my country’s PTA has increased significantly in the past few months.
From the perspective of export trade regions, before March, my country’s PTA export growth mainly came from India, Brazil and South Asia; after March, due to the gradual recovery of PTA devices in these countries and regions, the PTA market in the international market The gap turned to Europe and the Middle East.
Industry insiders generally believe that as my country’s PTA supply continues to increase, the cost-effectiveness and quality advantages of domestic PTA continue to improve. In the medium to long term, my country’s PTA export volume will increase or Become a norm. However, some people in the industry believe that although the increase in my country’s PTA export volume may become a norm, it remains to be seen whether it can continue to maintain high export volume.
Overseas companies are more enthusiastic about purchasing
The increasing enthusiasm of overseas enterprises to purchase domestic PTA will also lead to more overseas traders participating in the PTA futures market.
Since PTA futures was introduced to overseas traders in 2018, overseas petrochemical companies, PTA production companies and polyester companies can use the PTA futures market for hedging or arbitrage. PTA futures prices have not only become the “wind vane” for prices of related products in my country, but have also attracted close attention from companies in related industries in European and American countries and regions.
Dong Li said that when overseas companies discuss business with domestic companies, they will mention whether they can use a method to benchmark the settlement price of PTA futures, instead of blindly referring to the prices of consulting agencies such as ICIS and Platts. The quotation strategies of some bottle tablet companies in the EU market have also changed since the second half of 2019. “Previously, the procurement of forward raw materials needed by the European market mainly adopted the ‘fixed price’ method. However, after the introduction of my country’s PTA futures to overseas traders, the price and supply of forward raw materials in the European market can be locked from the futures market, and the forward quotation It’s starting to catch on,” he said.
At the same time, the export order prices of many polyester short fiber companies in my country will also be determined based on the upstream raw material prices and downstream demand for short fiber when signing the order.
“Currently, overseas polyester companies play a role in hedging and locking in profits through the indirect participation of traders or exporters.” Dong Li introduced that more and more overseas companies are beginning to understand and participate in PTA futures In the market, the pricing of the international polyester industry chain will gradually shift from reference to PTA monthly settlement prices to reference to PTA futures prices.
According to Pang Chunyan, an analyst at SDIC Essence Futures, the market influence of PTA futures internationalization will grow with the increase in PTA spot exports. With the deepening of internationalization, the mode of purchasing PTA by overseas enterprises will gradually expand from the simple spot market to the futures market. The futures market will become an important channel for overseas enterprises to purchase PTA, and will even become an important channel for overseas customers to arrange production and operation plans. important reference. Hedging and investment in my country’s PTA futures marketThe price discovery function will be better reflected in the global market.
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