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PVC Futures Companies Are Preparing To Fight For It.

2009/5/22 15:53:00 42128

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Recently, as the leading enterprise of chlor alkali industry, chlor alkali chemical announcements, the board of directors decided to participate in the PVC futures hedging business of the Dalian commodity exchange, and approved the PVC futures trading organization and risk management and control system, organizational structure and hedging position (with no more than 70% of the PVC spot volume), and authorized the general manager to operate.

Chlor alkali chemical believes that the introduction of PVC futures will pform the competition of PVC production enterprises from the original single spot market pattern to the two market competition of spot and futures.

Companies actively carry out PVC futures hedging business, as an effective tool for enterprises to control risks, so as to enhance the company's ability to resist market risks and stabilize price cyclical shocks.

According to information from the big business center, the PVC futures market was first scheduled for May 25th.

According to statistics, there are 143 PVC production enterprises in China, of which 21 are listed companies in Shanghai and Shenzhen stock exchanges.

With the launch of PVC futures, related enterprises are ready to fight for futures.

Chlor alkali chemical industry is typical.

Public information shows that PVC resin is the main product of chlor alkali chemical industry, including three series of SPVC, PPVC and special resin, and the total capacity of resin is 470 thousand tons / year.

At present, the sales price of common PVC resin and paste resin is the highest in the domestic industry, and it plays a guiding role in the whole chlor alkali industry in China.

The PVC futures contract of the big business establishment is made of GS5 grade one, corresponding to the two brands of chlor alkali chemical SPVC series S1000 and M1000. According to statistics, the average annual output of the company in three years is nearly 90 thousand tons.

If the company produces resin according to the SG5 standard level, its capacity can reach 300 thousand tons. In the spot market, the price of calcium carbide method is generally lower than that of ethylene resin 200 yuan / ton, but the standard and contract do not use premium to reflect the price difference of different process routes.

At this point, chlor alkali chemical industry has a price disadvantage.

The turbulent international economic environment makes enterprises eager to avoid risks.

It is understood that, after the outbreak of the international financial crisis last year, crude oil prices plummeted and China's export environment deteriorated and other factors, which brought great impact to China's synthetic resin industry. The price of PVC dropped from 9000 yuan / ton in July 2008 to 4900 yuan / ton in November, and then rose with the rise of demand and crude oil prices.

In this round of price fluctuations, spot businesses and traders can not avoid risks, and they are trembling with fear in the process of operation.

Li Jun, general manager of chlor alkali chemical industry, once said, "in the time of the current financial crisis spreading and the international financial derivatives market structure is undergoing a major adjustment, the state will seize the opportunity to actively promote the development of the domestic futures market, so as to enhance the voice of domestic commodities in the international market."

Zhang Wenlei, Deputy Secretary General of chlor alkali Association of China, said that the listing of PVC futures would be a better hedging variety. After the PVC futures were listed, on the one hand, the long-term price discovery function of the futures market would enable the whole industry to carry out structural adjustment in a guiding way; on the other hand, the hedging function of the futures market could help enterprises get through the downturn stage of the market, thus stabilizing the industrial structure and making the whole PVC industry develop smoothly, healthily and continuously.

Guo Qingren, chairman of Xinjiang Tianye Group, believes that China is the first producer of PVC in the world and the largest consumer country. However, due to the fragmented small businesses, the pattern of production and trade has not yet been formed.

After the listing of PVC futures in big business, China will have the right to speak in international pricing of PVC.