Recently, the data released by the China Interim Association shows that in 2021, the four major business indicators of the futures industry will all rise sharply, and the overall profits of 150 futures companies across the country will increase by nearly 60 percent year-on-year, reflecting the good development trend of the futures industry. At the same time, the overall profitability of the domestic chemical fiber industry in 2021 will be significantly improved compared to 2020. The futures market will significantly promote the development of the chemical fiber industry, profoundly changing the traditional trade form of the polyester industry, and effectively improving its pricing efficiency and risk management level. Hedging, basis trade, etc. have been deeply embedded in the daily production and operation of polyester upstream and downstream enterprises.
Today, 95 percent of PTA production enterprises and more than 80 percent of polyester enterprises have participated in futures. Domestic polyester industry enterprises represented by Hengli Petrochemical (600346) and Yisheng Petrochemical are rapidly becoming bigger and stronger, and they have obvious international competitive advantages. Internationally, BP, Glencore and Mercuria are increasingly More and more overseas industrial enterprises are also participating in the use of PTA futures. At the same time, the futures industry continues to improve and develop, deeply cultivate the polyester industry, enrich derivatives, innovate service models, build a "moat" for the polyester industry, and help the high-quality development of the chemical fiber industry.
The best "TA" is frequently praised by the industry
PTA futures are one of the earliest chemical futures listed in China. In recent years, the basis point price model has accelerated to mature. At present, more than 95 percent of the circulating goods in the PTA market are priced in the way of "futures plus basis". Affected by the market environment, polyester industry enterprises have a very high degree of participation in futures.
By the end of 2021, my country's PTA production capacity has increased by 7 times compared with the beginning of the listing of PTA futures in 2006, and the open interest of PTA futures has also increased from 100,000 lots to 2 million lots. According to data from the Zhengzhou Commodity Exchange, in 2021, the proportions of PTA and staple fiber legal person customers will be 70.52 percent and 61.80 percent , respectively, up 23.39 percent and 96.07 percent year-on-year. The participants in the futures market are also more diversified, and both upstream and downstream enterprises in the industry chain are participate actively.
It is worth mentioning that while the enthusiasm for participation in the polyester industry is high, the function of PTA futures has also been widely recognized by the market.
"For Hengli Petrochemical, PTA futures can be used as a sales tool. Actively participating in PTA futures can help companies lock in forward processing profits, and can also make PTA sales more flexible and avoid systemic risks. The company's sales are currently based on PTA futures. The price is based, and futures are used for cooperative hedging to lock in processing profits and avoid risks." The relevant person in charge of Hengli Petrochemical told reporters.
In 2021, PTA, MEG and other varieties have entered the stage of industrial integration andupgrading. Under the production cycle, the industry reshuffle is accelerated, and backward production capacity is constantly being eliminated, which will inevitably reduce the processing fee space. "In order to ensure normal operations and minimize losses, PTA companies seize the opportunity to sell PTA and buy raw materials in the changing market conditions to lock in processing fees. Hedge when processing fees are low to avoid excessive processing fees. Low prices will lead to losses and affect the normal operation of production units. When downstream demand deteriorates and the price of crude oil or upstream raw materials falls sharply, hedging with large trading companies can be used to avoid the loss of product price decline." The above-mentioned relevant person in charge said.
According to Liu Dewei, general manager of Xiamen International Trade (600755) Petrochemical Co., Ltd., in 2021, nearly 90 percent of enterprises in the polyester industry chain will actively participate in futures. The annual contract of sales in the fee model makes the cooperation between manufacturers and end customers more stable and flexible.
In his view, the most positive impact of the futures market on the polyester industry chain is that enterprises in the industry chain predict processing fees through effective price expectations, strengthen product forward sales, and then organize production to objectively pass business risks upstream and downstream. , completely changed the situation before 2020, in which the profits of foreign refining and chemical plants were bursting, and domestic PTA and downstream enterprises were struggling.
"Polyester factories use hedging to lock in processing profits, avoiding the loss of raw material prices and effectively adjusting the operating rate. Especially in the fourth quarter of 2021, when PTA and MEG spot fell sharply, the combination of futures and currents played a role in cutting peaks and flattening valleys. It has reversed the passive situation of losing half a year's profits in one month before 2018 in the polyester industry." Liu Dewei said that in addition, supply chain enterprises and traders participated in the futures market in large numbers, which also objectively played a role in balancing and regulating East China. And the role of warehousing in southern China and optimizing logistics.
Liu Dewei said that when the production capacity of the whole industry chain has increased by nearly 7 percent , the inventory of the whole industry chain has only increased by 2 percent , which is a good proof. The capital occupation of the entire industry chain and the reduction of financial costs have further stabilized the leading position of my country's polyester industry chain in the world.
Concentrate on Contributing Futures to the Chemical Fiber Industry
With the development of the futures market, futures business institutions continue to design effective "futures solutions" for enterprises, and many risk management companies have also transformed into new industrial service providers that provide comprehensive solutions. Industrial enterprises, contributing to the "power of futures".
The reporter learned that, as a service subject, Yongan Capital's performance in the polyester sector will increase in 2021, and staple fiber is the biggest bright spot. In 2021, the trade volume of Yongan Capital staple fiber will grow rapidly, increasing by 5 times compared with 2020.
"During the outbreak of the epidemic in some areas of Zhejiang at the end of 2021, Yongan Capital has fulfilled its responsibility to ensure supply for downstream factories, and helped staple fiber factories to lock in relatively high processing fees during the easing stage of the epidemic, stabilizing the entire staple fiber factory. Annual profit and production." Fei Yang, the current manager of Yongan Capital's staple fiber futures, said that due to the existence of the price point model after the cash, Yongan Capital can deliver PTA, MEG and other raw materials to the polyester factory in advance, when the epidemic affects logistics. , the polyester factory has already prepared enough raw materials, and in the process of raw material prices falling due to the epidemic, prices are set to further reduce their own costs, and then after the price of raw materials falls, the procurement costs of downstream factories are reduced in the form of secondary prices, which has played a role in The role of industrial "lubricants".
It is understood that in recent years, due to the disturbance of macro factors and the large fluctuation of raw material prices, the demand for hedging of polyester enterprises has increased. In response to these needs, Yongan Capital has made further innovations in its service model.
Fei Yang told reporters that on the basis of the traditional business models such as spot price, post price, and price lock, Yongan Capital has innovatively launched new business models such as locking corporate processing fees and trade with rights, which further stabilized corporate profits. Or let the company exchange a fixed premium for absolutely no risk in the form of options. These new business models can further promote the stable operation of polyester enterprises.
The purpose of futures business institutions is to serve the real economy, with research capabilities as the core, and to drive the development of comprehensive business. Among them, Tianfeng Futures has shown the characteristics of specialization and informatization in serving the polyester industry.
"At present, the polyester industry chain presents an integrated development pattern, and polyester industry customers have increased research needs for upstream crude oil, naphtha, PX and other raw materials. In order to better serve real enterprises, our research institute provides polyester industry customers with horizontal , vertical subject research services, and at the same time build a set of information industry data system to provide efficient information services for industrial customers' raw material stocking and inventory management." Tianfeng Futures analyst Liu Siqi told reporters that in 2021 Tianfeng Futures customers The scale of equity increased by 71 percent year-on-year, the number of PTA and staple fiber industry customers increased, and the proportion of PTA futures business increased.
In recent years, around how to better serve the polyester industry enterprises, the exchange is also working intensively: by closely tracking the spot market, fully understanding the needs of industrial customers in a timely manner, timely revising the rules and regulations, expanding the delivery brand and region, and truly realizing the "thinking enterprise" What to think, what is urgent for enterprises, and what is difficult for enterprises", break through obstacles in the delivery link, ensure smooth and unimpeded delivery, and play a special role in special times; continue to enrich the variety of the industrial chain and provide diversified products for upstream and downstream enterprises in the polyester and textile industry chain It also provides a variety of supporting services such as warehouse receipt financing.
"In the next step, ZCE will increase the research and development of PTA upstream and downstream PX, bottle flakes, filament and other futures varieties, enrich the financial hedging tools of industrial chain enterprises, help smooth the domestic circulation, and continue to carry out industrial services and market cultivation. Support enterprises with risk management needs to use futures tools to stabilize production and operation in a direct or indirect way, and help ensure supply and price.
