PTA Futures: A "Fire" In Winter

Since the bottom rally in November 5th, the price of PTA main contract has risen to 5918 yuan / ton.

With the rising prices, the volume and position of PTA futures have increased strongly.

In November 19th, PTA futures reached a record high of nearly 1 million 430 thousand hands, and turnover exceeded 3 million.

For PTA futures such market activity, Jiangsu Changle Fiber Technology Co., Ltd. two trade manager Wu Wenhai admitted that in the past market is indeed very difficult to see.

What changes have taken place in the market behind the leap of PTA futures volume?

"In October, when the price of PTA fell sharply to its lowest level in 5 years, the market divergence increased.

Downstream polyester demand continues to improve, and efficiency has reached the best level in nearly three years, which makes polyester enterprises' willingness to buy insurance packages increased.

Wu Wenhai frankly, in the case of polyester profits, the PTA price of 6000 yuan / ton is very attractive for PTA consumer enterprises to buy insurance.

It is understood that polyester consumption has been good since October, and profits are also good.

"In the situation that the market is expected to continue to be good later, the polyester factory buys futures, which can avoid the risk of the rapid rise in the PTA price and lock the profits ahead of time."

Galaxy futures analysis normal Jinsong think.

"Since the pre PTA futures price continues to be on the spot, plus the profits from the existing polyester production is better, some enterprises are not excluded from buying and maintaining value in advance and locking up procurement costs in advance."

Relevant personnel of a chemical fiber enterprise in Zhejiang said to the futures Daily reporter.

After the establishment of PTA production alliance in May this year, limited production and insured price led to a shortage of market supply. PTA once appeared a phenomenon hard to find.

"Downstream

Frequent problems of shortage of raw materials, which prompted polyester enterprises to change their business ideas, began to look for PTA sources in the futures market, buying hedge and enthusiasm warming up.

The 1501 contract is approaching, and the market is worried that the PTA plant will limit production again.

In order to prevent the situation of "no rice pot" in the late stage, it is also necessary for the polyester enterprises with production orders to buy hedging in the futures market ahead of time, and do some virtual inventory management.

In addition, it has been in the market.

PTA companies may also be buying hedge.

"International crude oil prices have fallen by nearly 30% since June, and PTA raw materials PX also fell below the 1000 dollar / ton integer mark, and the lowest four us new year low to 990 US dollars / ton."

Wang Guangqian, a futures analyst at Soochow, believes that in the face of such cheap raw materials, the PTA plant may use PTA futures to buy and hedge the raw materials so as to prevent late oil prices from going up sharply and driving up costs.

At the same time, several major PTA factories in China will cut production in December, and the PTA production load will probably decrease to near 60%.

"Some PTA factories may use the PTA futures market to buy hedging and pick up goods when the period price is lower than the spot, so as to hedge the production loss caused by the December parking inspection."

Wang Guangqian analysis said.