Listed In The Past 10 Years, Eventually Won The Market Recognition Of Goods To Ease Spot Inventory Obvious

Zheng Shang Office

In the past 10 years, the awareness of spot companies has gradually increased their awareness.

PTA futures to ease the whole

What is the role of pressure and how to play an important role in the win-win situation of the industry chain?

In the past 3 years, the volume of PTA futures warehouse receipt has increased year by year.

In 2014, the warehouse receipt reached a maximum of 400 thousand tons and reached 800 thousand tons in 2015. Up to this year, the highest is around 960 thousand tons.

With the continuous improvement of market participation in PTA futures, futures warehouse receipts with the function of "reservoir" in the futures market are increasingly popular among all parties in the market. The large volume of futures warehouse receipts has become one of the focuses of the market.

The futures warehouse receipt is a physical delivery certificate issued according to the prescribed procedures by the futures exchange, which specifies the delivery warehouse in accordance with the stipulated procedures.

As a means of circulation, futures warehouse receipts can be used for the delivery of loans or futures contracts.

As of now, the PTA futures of Zheng Shang are using a general warehouse receipt, which means that the buyer can be opened and accepted as a bank book after the buyer gets the PTA warehouse receipt.

Cao Mingji, deputy general manager of Zhejiang Yisheng Petrochemical Company Marketing Center, told reporters that spot stock is the basis of futures warehouse receipts. The larger volume of futures warehouse receipts is related to excess capacity of PTA industry in spot market.

Although the inventory can be adjusted through the factory operating rate, there will still be a small number of on the way stock and safety stock of production enterprises.

In the period when PTA futures were not listed, stock wharf or factory warehouse became the object of market concern, and most of them were invisible inventory, so the market could not understand the actual supply and demand accurately and objectively.

Chen Luwen, assistant general manager of Xiamen Xiangyu logistics and commodity derivatives division, sees that the benefits of PTA futures warehouse receipts to the industry include reducing inventory holding costs, making it easier for production companies to pick up goods nearby, saving time and logistics costs, and gradually becoming dominant in industrial inventories, which helps to find prices on both sides of the market.

Xie Haisu, deputy general manager of the Trade Department of Limited by Share Ltd, Xiamen (600755, Guba) group, believes that the dominance of social inventories has brought great convenience to the production management decisions of the upper, middle and lower reaches, and the efficiency of inventory realisation and procurement has also been greatly improved. For the middle traders, the real supply and demand situation of the upper and lower reaches is conducive to making more precise judgments and decisions, and playing the role of pparent supervision and so on. Xie Haisu

Reporter survey found that in the PTA industry chain middle trading company, is not the traditional sense of "low buy high sell" traders, but to open up all aspects of the supply chain, for the whole industry chain win-win platform.

Besides the normal futures warehouse receipt paction, warehouse receipt repurchase business is playing a more and more important role in industrial supply chain management.

The so-called warehouse receipt repurchase, that is, after the intermediate traders pick up the raw materials of the finished products or downstream polyester factories of the PTA production enterprises, sell the hedging in the futures market, and when the upstream and downstream businesses have to buy back the goods, the traders in the middle of the market will further reduce the previous short positions.

"In short, as a PTA manufacturer, there is no shortage of goods in the upstream market, because the Central Trade Association catches up and digests the goods in time. For downstream polyester factories, when the price is low, they can buy goods in time to fill the gap of raw materials, and for traders themselves, they earn a certain price difference through hedging, and they also get profits."

Zou Jinlong, a futures analyst at the Ministry of chemical industry, Ltd.

In addition, Xie Haisu said that although the clothing trade enterprises in Jiangsu, Zhejiang and Shanghai consume more than 70% of China's PTA consumption every year, a large part of PTA's producers come from Hainan and Liaoning. In recent years, if there are extreme weather such as typhoons, they may cause up to a week or even half a month's suspension and outage. The tightening of spot leads to the rise of futures, which will bring a temporary impact to the market.

However, with the increasing number of delivery warehouses in Jiangsu, Zhejiang and Shanghai, the intermediate traders can play a bigger role in "bridging". Downstream enterprises can extract goods from the futures silos, which not only avoid risks in pit, but also save freight costs, and have achieved good results.