Timely Adjustment Of PTA Spot Pricing Model Is The Best Policy.

The greater the capacity and the greater the responsibility, the move of big brother undoubtedly affects the nerves of the PTA market.

From the market price to the pricing mechanism, Yisheng Petrochemical's recent moves in the spot market have been carefully considered.

It is understood that since 2013, Yisheng Petrochemical has made a series of measures for PTA pricing in the spot market.

For example, in the past three years, the annual overhaul plan "limited production and insured price" has been frequently thrown out, and the alliance has mastered PTA supply and selling.

Shipping cash and other cash flow strategies.

For the change of pricing mode, Yisheng Petrochemical Related personages also explained in the sub forum of the Eleventh Shenzhen international futures conference.

"In the market with controllable supply and demand, our enterprises need to maintain a stable price range acceptable to all sectors of the industry."

Yisheng Petrochemical responsible person said, at this time need a pair.

The supply pattern and the influential market players in the spot make the correct guidance to the spot price. "The price corresponding to the processing price of Yisheng Petrochemical quoted price is not high in the current PTA market, in fact, it is also suitable for the current PTA market to go inventory and low efficiency production environment".

Speaking of Yisheng Petrochemical's series of measures, Wu Wen Hai, who has been in the spot market for many years and is responsible for the nine investments, believes that Yisheng Petrochemical's strategy in the spot market can be divided into two stages.

"Before 2015, there was an absolute price, and the market price fell below the psychological bottom line. Yisheng Petrochemical pushed prices up and down through various ways; since 2015, the price of oil has collapsed and the cost competition with the partners has been needed.

The price will be converted into a very cash flow, so that cash flow can be maintained in its own state of tolerance.

He said, in fact, Yisheng Petrochemical has different operation methods at different stages, and it also changes in time.

It is worth mentioning that in the process of pricing, the pricing mode of PTA contract goods has gradually changed.

Reporters learned that with the gradual expansion of PTA production capacity, the phenomenon of PTA oversupply is more serious.

In order to strive for a more flexible and equitable pricing model for raw materials, the polyester plant has gradually reduced its contracted volume with the PTA factory contract. Instead, it hopes to increase its purchase quantity in the spot market through its own market, which has brought uncertainty to the production and operation of PTA plant.

"In order to improve the proportion of contracted products between downstream polyester enterprises and PTA plants, the PTA factory represented by Yisheng Petrochemical has always wanted to firmly grasp the pricing power in the spot market."

Wang Guangqian said that this has the concept of PTA cost pricing in May 2014, the main port price quoted in January 2015 and the purchase price and the intermediate price introduced in November.

"For PTA enterprises, Yisheng Petrochemical can effectively stabilize the spot market price, help settle the price at the end of the month in a reasonable value range, and ensure the cash flow of PTA enterprises, which is conducive to the steady operation of PTA enterprises.

But for the downstream polyester enterprises, Yisheng Petrochemical indirect supporting market behavior virtually raised the production cost of polyester enterprises.

In the background of PTA enterprise's own finished product inventory pressure and low price push, the price of raw materials will erode the cash flow of some polyester enterprises.

Wang Guangqian said.