Having been deeply involved in the industry for 15 years, what has changed in PTA futures?
You are wearing a windproof and warm winter clothing, you are holding a cup of sweet and warm milk tea in your hand, and you are wearing a pair of comfortable sneakers on your feet… You may never imagine that they may all use an upstream raw material, which is PTA.
As an important bulk textile raw material, PTA is closely related to the daily life of the public.
On December 18, PTA futures celebrated its 15th anniversary. Over the past 15 years, PTA futures has accompanied the rapid development of my country’s PTA industry and is integrated and symbiotic with the industry.
Over the past 15 years, my country’s PTA self-sufficiency rate has increased from less than 50% to 100%. While the polyester industry has achieved great development, its dependence on foreign raw materials has gradually decreased, the competitiveness of the polyester industry chain has significantly enhanced, and the degree of “integrated” development Keep deepening.
Over the past 15 years, PTA futures has also become stable and mature in the process of optimization and upgrading of the service industry and stable operation of enterprises.
“PTA futures prices are not only the pricing benchmark for my country’s PTA spot trade, but also gradually become an important pricing reference for international trade of upstream and downstream products.” The person in charge of a large chemical fiber company in Zhejiang told reporters.
PTA period-to-date correlation coefficient
Regularly up to 0.99
PTA futures was listed on the Zhengzhou Commodity Exchange (hereinafter referred to as “Zhengzhou Commodity Exchange”) on December 18, 2006. It is the first chemical product in my country’s futures market and a unique futures product in the world.
After 15 years of careful cultivation, the trading scale of the PTA futures market has steadily expanded, the price discovery function is good, and it has been deeply integrated with the development of my country’s polyester industry. In the functional evaluation of futures products organized by the China Securities Regulatory Commission, PTA futures has ranked first among chemical products and among the forefront of industrial products in the country for many years.
The futures-to-spot correlation coefficient is an indicator for judging the consistency of futures and spot price trends of a variety. The closer the value is to “1”, the more consistent the price trends are.
The correlation coefficient of PTA futures has remained at 0.99 all year round. It can be said that PTA futures prices accurately, comprehensively and truly reflect the supply and demand situation and changing trends of the industry.
On the one hand, PTA futures can guide the production and operation activities of enterprises in the polyester industry chain. On the other hand, it also provides favorable conditions for enterprises to carry out hedging and other operations through the futures market.
According to statistics, there are currently about 20 PTA manufacturers in my country, 16 of which have participated in PTA futures trading. Their combined production capacity accounts for approximately 93.59% of the country’s total PTA production capacity. Among the top 20 polyester companies in terms of production capacity, 18 have participated in PTA futures trading, and their combined production capacity accounts for approximately 67.47% of the country’s total polyester production capacity.
Judging from the actual market situation, the PTA futures delivery layout also shows the remarkable feature of highly coordinated matching with the industrial supply and demand pattern.
From the upstream supply side, in the Qiantang River Estuary area, whose polyester production capacity accounts for about 40% of the country’s total polyester production capacity, there are 9 PTA futures delivery warehouses such as Lingang Logistics and Ningbo Yisheng PTA futures delivery factory.
From the downstream demand side, all 20 PTA delivery warehouses are located in Jiangsu, Fujian and Zhejiang provinces, which account for 84% of the country’s polyester staple fiber production capacity.
The person in charge of a large polyester company said: “The PTA warehouse receipt is a universal warehouse receipt. With the warehouse receipt, you can pick up the goods at any delivery warehouse with a warehouse receipt. Compared with traditional spot procurement, the warehouse receipt model can save logistics costs. , effectively promote the expansion of trade radius and market circulation circle from regional markets to the whole country, thereby improving the efficiency of spot trade and circulation.”
Hengli Petrochemical, Hengyi Petrochemical, and Yisheng Petrochemical are all large-scale chemical fiber companies that are rapidly growing bigger and stronger, and have established strong international competitive advantages. Over the years, they have actively participated in the PTA futures market, carried out hedging and other operations, and comprehensively managed corporate business risks.
Hengyi Petrochemical stated that the hedging investment business carried out by the company for the purpose of hedging is closely related to the company’s daily operating needs. It has strengthened risk management and control and is conducive to improving the company’s ability to withstand market risks.
The person in charge of another polyester company told reporters that the market transparency of futures varieties in the polyester industry chain is high, transactions are active, and transaction prices and settlement prices can fully reflect the fair value of derivatives. By carrying out hedging business with futures products such as PTA, the company can make full use of the hedging function of the futures market to better avoid risks caused by price fluctuations of raw materials and products and reduce the impact on the company’s production and operations.
“PTA futures prices are highly correlated, which is due to the in-depth participation of industry chain companies.” The relevant person in charge of Zhengzhou Commodity Exchange said.
Change at home and abroad
Industrial chain trade pricing method
Over the past 15 years, PTA futures have profoundly changed the traditional trade form of my country’s polyester industry, changed the trade pricing methods of the upstream and downstream of the industrial chain, and effectively improved pricing efficiency and risk management levels.
The reporter learned that before the listing of PTA futures, PTA pricing was dominated by several large domestic PTA production companies. The companies announced the settlement price of the contract goods for the month based on the spot transactions at the end of the month, and then announced the settlement price.��The influence of PTA futures prices in domestic and foreign markets; we will continue to carry out industrial services and market cultivation to support companies with risk management needs to use futures tools to stabilize production and operations directly or indirectly to help ensure supply and stable prices. “The above-mentioned person in charge of Zhengzhou Commercial Exchange said.
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