PTA: Groping For Futures Operation Paths Suitable For Enterprises

It is understood that as the largest and influential PTA manufacturer, Yisheng Petrochemical has been groping for its futures operation mode since PTA futures went public.

"For Yisheng petrochemical, it is not too long to participate in futures trading from scratch."

Yisheng Petrochemical responsible person said, as a private enterprise,

It is impossible to ignore futures. Since we have this platform, we should learn and make good use of it so as to support "umbrella" for business operation.

Anyway, Yisheng Petrochemical's position of "backbone" in the PTA spot market can not be shaken.

In addition, in the futures market, "big brother" also showed the "leading effect", and achieved the two markets of spot and futures, both hands must be hard.

Since its listing in December 18, 2006, PTA futures have played an increasingly important role in serving the real economy. Price discovery and hedging have been fully realized. PTA futures prices have become a barometer of the chemical fiber raw materials market.

Yisheng Petrochemical Company is one of the early PTA factories involved in futures. With the acceleration of its understanding of the internal mechanism and function of futures market and the rapid improvement of liquidity in the futures market, enterprises began to gradually increase the intensity of hedging operations, and successfully made use of futures market to sell hedging, which made a great contribution to the smooth operation of enterprises.

In the following years, Yisheng Petrochemical increased its investment in the futures market and hedged its futures market as much as possible. The annual hedging volume accounts for about ten percent of the annual capacity. It has stabilized the spot business through the futures market operation, and has played an important role in the development of the industry.

"For PTA manufacturing enterprises, they often face the risk of falling PTA prices. Therefore, such enterprises mainly sell hedging.

At the same time, production enterprises can also buy and guarantee delivery in the main contract in the near future under the condition of low spot processing fees.

Small devices can reduce the operating rate and replenish the supply of PTA devices by futures delivery, thereby reducing the loss of PTA spot.

The person in charge said that the time for enterprises to intervene in futures is generally judged through comprehensive macro and industrial trends in the future, and combined with the production and operation of enterprises themselves.

In addition to bringing futures hedging into operation, Yisheng Petrochemical also introduced the spot price model.

It is understood that the point price mode refers to the upstream enterprises selling futures forward contracts in advance (downstream polyester production enterprises bargain buying futures contracts). When the spot trading is done, the buyers and sellers determine the price by futures plus plus discount.

After confirmation, the futures market will be closed.

According to the futures price, calculate the price of the emerging goods, for example, the 1505 contract price is 5200 yuan / ton, and the cost of the seller's interest and delivery cost is calculated according to the seller's spot price, and the price of the goods is reported to the customer. The purchaser can complete the spot price from the futures market within the prescribed time limit.

In fact, point price mode is the extension of hedging.

"Through the point price, PTA production enterprises and polyester factories can determine the final trade settlement price based on the futures price with a high degree of marketization."

The above official said, for production enterprises, the spot price mode can lock its sales price, and then lock in profits, making its insurance effect better, and the base risk is minimized.

In addition, even if the production enterprises pfer the pricing power to the market, they can still protect their interests by determining the premium and premium based on the spot market and their own conditions.