PTA: Alleviating the contradiction between supply and demand, the “regulator” function of the delivery warehouse is highlighted
Adjustments to trading margin standards and price limits during Labor Day 2021
PTA Since its listing, with the gradual expansion of production capacity and increasing delivery volume, especially affected by the COVID-19 epidemic in 2020, PTA inventory has surged. The number of PTA futures warehouse orders hit a new high since its listing. This year’s PTA futures January contract once again saw huge deliveries, setting the largest delivery volume for a single PTA futures contract in the past four years. Nowadays, more and more companies are involved in the delivery process, and adjusting inventory through futures delivery has become the consensus of PTA companies. As an important service carrier in the delivery process, delivery warehouses also play an active role, and providing innovative services has become the focus of each delivery warehouse.
Since being approved to become the designated PTA delivery warehouse of Zhengzhou Commercial Exchange in March 2015, through years of efforts, Zhangjiagang Free Trade Zone Foreign Investment Service Co., Ltd. (hereinafter referred to as the foreign service company), a subsidiary of Zhangjiagang Bonded Technology (Group) Co., Ltd. With differentiated management, high-quality services, and innovative measures, it won the honorary title of “Designated Excellent PTA Delivery Warehouse in 2017” and was also approved as the first temporary storage point of Zhengzhou Commercial Exchange designated PTA delivery warehouse in Zhangjiagang City in 2020; since 2017 Since then, Foreign Service Company’s PTA warehouse receipt registration volume has ranked first in the country’s third-party warehousing warehouse receipt registration volume for many consecutive years.
For excellent delivery warehouses, what are the secrets to providing good delivery services? To this end, a reporter from Futures Daily interviewed Qian Weifeng, general manager of Foreign Service Company.
Futures Daily: How do you view the positioning of the delivery warehouse itself and what role does it play in serving the real economy?
Qian Weifeng: Delivery is an important link in futures trading. As the delivery location for futures contracts to perform physical delivery, the delivery warehouse is a futures service institution that provides delivery services and generates standard warehouse receipts for futures types to enter the physical delivery link. It plays a “lubricant” role in serving the real economy. The delivery warehouse can also become a “reservoir” for commodities, especially during the period of mismatch between upstream and downstream supply and demand, effectively alleviating the contradiction between supply and demand.
Foreign Service Company was established in August 1998. Its registered place is in Zhangjiagang Free Trade Zone, with a registered capital of 467 million yuan. It is the first listed company in Zhangjiagang City – Zhangjiagang Bonded Technology (Group) Co., Ltd. (hereinafter referred to as Bonded Technology Group) ) subsidiaries.
At present, the company’s storage capacity is close to 200,000 square meters, mainly storing Class C and II goods, such as PTA, cotton, cotton yarn, etc. The cargo trade in the warehouse accounts for about 90%. PTA supply mainly covers the demand in East China, including downstream factories around Zhangjiagang and Jiangyin, such as Sanfangxiang, Jiangyin Huahong, etc. The transportation distance is within 20 kilometers, with low transportation cost and high efficiency. It can effectively meet regional demand; it can be transferred and transported to downstream factories in Xiaoshao area of Zhejiang through the bonded port terminal of the group subsidiary, such as Tongkun, Xinfengming, etc., effectively alleviating the regional supply shortage.
Futures Daily: Based on the changes in the PTA market and industry characteristics, let’s talk about how the delivery warehouse can help PTA industry companies solve their own needs, and how to drive industry entities to avoid risks?
Qian Weifeng: The most important demand of enterprises participating in futures delivery is periodic storage capacity needs, which can be used for hedging or rapid withdrawal of funds to reduce operating risks. As a delivery warehouse, we need to provide sufficient storage capacity to ensure futures delivery.
Generally, companies will participate in delivery under the following circumstances: As for PTA production companies, when the processing fee is more appropriate, the processing fee will be locked in by establishing a position on the futures market, and part of the position will be delivered on the market. In addition, when inventory pressure is high, such as during the epidemic last year, part of the spot position can be hedged through market selling, and part of the spot position will also enter delivery. PTA companies are relatively large in scale, so their demand for delivery storage capacity is greater than that of general trading companies. However, for companies through disk delivery, the payment collection cycle is slower. Based on this point, some PTA factories will sell spot goods directly to futures merchants and let futures merchants register for warehouse receipt delivery, thereby withdrawing funds earlier and transferring PTA companies’ demands for storage capacity to futures merchants. This is because This is also reflected in the PTA delivery in 2020.
Futures Daily: At present, adjusting inventory through futures delivery has become the consensus of PTA companies. What do you think about this? What role does the delivery warehouse play in special times? How to ensure the supply of goods from upstream and downstream? How is this achieved?
Qian Weifeng: Huge deliveries of PTA often occur during periods of capacity expansion, severe oversupply, and massive inventory backlogs. PTA futures have become an important sales channel for manufacturing companies.
By selling hedging through PTA futures, you can lock in sales profits while completing inventory sales, which is helpful for enterprises to arrange future production. At the same time, PTA warehouse receipts can be transferred, pledged, used as margins, and discounted as margins, etc. , to achieve the purpose of capital return, greatly reducing the financial pressure on production enterprises.
For downstream polyester companies, there are sufficient PTA warehouse receipts in a large number of delivery warehouses in consumption areas, just like “the family has more than enough food, and the heart is not panic”, it can reduce its own standing inventory and reduce the amount of PTA warehouse receipts.There is light raw material inventory pressure and financial pressure, and there is no worry about losses from falling inventory prices. When out of stock, buy spot goods first. If you cannot buy spot goods, you can also go to the delivery warehouse to cancel the warehouse receipt to meet production needs.
Delivery warehouses mainly play a role in alleviating the contradiction between upstream and downstream supply and demand. When upstream manufacturers have excess supply and downstream manufacturers are temporarily unable to digest it, they can register warehouse receipts, store the goods in the delivery warehouse, and lock in processing profits. In special circumstances, such as extreme bad weather, the delivery schedule of the upstream PTA factory is affected and the downstream supply cannot be supplied in time. The downstream company can cancel the warehouse receipt in the delivery warehouse to ensure stable production.
PTA products have the characteristics of standardized quality and centralized demand, which determines that PTA warehouse receipts have very good circulation and practicality, and also promotes the PTA delivery warehouse to better play the role of “reservoir” and “reservoir”. “regulator” function.
Futures Daily: What work has the delivery warehouse done to ensure the smooth progress of the delivery process? What kind of services are provided to PTA industry customers?
Qian Weifeng: Futures play an important role in the entire social economy. As an important service link in the delivery of commodity futures, delivery warehouses must ensure smooth delivery and safety of goods. Therefore, we feel a great responsibility and are proud to serve the real economy.
In order to provide delivery-related services, we mainly focus on the following three aspects:
First, with the care and support of Zhangjiagang Free Trade Zone and Bonded Technology Group, Foreign Service Company has continuously strengthened communication and exchanges with Zhengzhou Commercial Exchange, learned about the latest policies, delivery dynamics, etc. at the first time, and established an in-depth cooperative relationship .
Second, from a management perspective, we organize all employees to conduct futures delivery business learning to gain an in-depth understanding of delivery rules and business processes to ensure smooth delivery; in accordance with Zhengzhou Commodity Exchange delivery rules and dry bulk warehousing business processes, combined withQuality management system and safety production standardization construction requirements, formulating all-round systems such as operating procedures, cargo rights control and safety production, to ensure the safety of the delivery environment and goods.
Third, through effective communication, close contact, coordination and real-time feedback with customers, terminals, logistics and other parties, we provide industrial customers with high-quality services that are “worry-free, secure and comfortable”. For example, we will track the arrival information of goods in advance and coordinate the warehousing of goods, so that customers do not need to connect multiple lines; for customer needs, we promptly evaluate and provide effective feedback; at the same time, we have also created a system that can provide Zhengzhou Commercial Office and customers with Video surveillance with 24-hour query service.
Futures Daily: In your opinion, what changes have occurred in the warehouse itself after becoming a delivery warehouse? How will PTA delivery services be further optimized in the future?
Qian Weifeng: Since Foreign Service Company became the designated PTA delivery warehouse, it has improved the warehouse’s brand image, customer trust and industry competitiveness, and also played a positive publicity role for Bonded Technology Group.
As we all know, Zhengzhou Commodity Exchange has strict screening standards for setting up delivery warehouses. Therefore, if a delivery warehouse is approved, the market recognition will be higher; compared with spot warehouses, customers can rationally use futures tools to transfer warehouses according to market changes. Internal spot goods are registered as warehouse receipts, which improves flexibility and effectively reduces market risks and logistics costs. Therefore, customers are more sticky to the delivery warehouse.
In addition, due to the rapid changes in the market and the regulatory requirements of all parties, delivery warehouses must constantly be exposed to new knowledge, such as smart logistics construction, etc., constantly innovate ideas during learning, and constantly optimize services during exploration, so as to ensure the growth of enterprises. There’s more space, too.
In recent years, with the care and support of Zhengzhou Commercial Exchange, Bonded Technology Group has vigorously promoted the comprehensive transformation of traditional logistics into smart logistics, and has successively created version 1.0 of the smart logistics service platform – the online warehousing smart logistics service platform and version 2.0 – Jiangsu Jiaotong Network has realized online delivery, online payment, and receipt and payment synchronization of ethylene glycol, diethylene glycol, methanol, PTA and other varieties; at the same time, in April 2021, it was the first cooperation platform of Shanghai Clearing House and was newly launchedCommodity spot clearing business, successfully established a multi-bank delivery payment and settlement system, and realized version 3.0 of the group’s bulk commodity smart logistics service platform.
At present, Bonded Technology Group is vigorously implementing the “two-wheel drive” development strategy, and traditional logistics and smart logistics go hand in hand and develop together. As an important pillar of the group’s main dry bulk logistics business, the foreign service company will adopt the development model of “leverage, value-added, and expansion”. On the one hand, it will make full use of the group’s resource advantages such as terminals, trade and platforms to accelerate its external expansion layout. Expand the scale, volume and variety of warehousing; on the other hand, accelerate the pace of smart warehousing construction, actively innovate business models, strengthen integrated development with Jiangsu Jiaotong Network, and carry out PTA “easy delivery” and “chain delivery” businesses. In addition, we will actively promote the construction of intelligent warehousing and assist Zhengzhou Commodity Exchange in building a smart supervision platform for delivery warehouses.
In the future, focusing on the goal of Bonded Technology Group to build a “first-class smart logistics operator for bulk commodities”, Foreign Service Company will continue to improve the service level of PTA delivery warehouses and provide customers with more “safe, reliable, fast and convenient, and diverse functions” value-added services, improve customer satisfaction, better play the role of the “reservoir” and “regulator” of the delivery warehouse, and help the stable operation of PTA futures.
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AAAImprove customer satisfaction, better play the role of the “reservoir” and “regulator” of the delivery warehouse, and help the stable operation of PTA futures.
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.
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