PTA Builds Platform For Win-Win Industry Chain

It is understood that the trading company in the middle of the PTA industry chain is no longer a traditional low buy high trader, but through the supply chain management to serve the entire industry.

It is understood that the concept of warehouse receipt repurchase does not exist before, that is, in the past two years only gradually become popular in the market.

"This change is based on the continuous improvement of market understanding and participation in PTA futures."

Zou Jinlong said.

"Our subordinates have a leading logistics company in China. From capital, logistics to information, they can provide all-round services to the upstream and downstream industries, and of course, this is essential for the use of futures tools."

Chen Luwen said that for production enterprises, the time of production profit is very short, then it is necessary to sell large quantities of locked production profits to middlemen.

In supply chain management, futures provide risk hedging tools for trading enterprises. On the basis of effective risk management, they can help upstream and downstream optimize inventory structure and reasonably arrange production plans.

At the same time, the futures market makes the goods have financial attributes. On the basis of controllable cargo rights, through the purchase and sale of warehouse receipts and warehousing and pledge, it helps enterprises to reduce the capital cost of current positions.

In addition, trading companies can also act as "reservoirs" on the industrial chain to facilitate the purchase and sale of short and large quantities in the short term and downstream, so as to enable them to lock in or cash in profits in time.

In this process, trading companies also get corresponding profits based on supply chain services, so as to achieve a win-win situation.

In Xie Haisu's view,

Management is a very big concept. In price management, futures play an important role. Its main function is hedging and price discovery.

"When the forward price is right, the producer will carry out forward spot purchase and sale through traders, and traders will control the fluctuation risk by hedging.

Traders have ample funds to bear inventory and margin pressures, and manufacturers focus on the control of processing fees, which is a win-win outcome for both sides. "

"For us, hedging is only one aspect. At the end of trade, we also have a certain distribution capability. Through upstream and downstream integration, we can get goods directly from the upstream factories with a certain scale and send them directly to downstream factories.

First of all, the volume of trade is stable; secondly, there will be no centralized delivery or buying pressure.

Although there are certain reasons for hedging positions,

But through inventory management, futures and forward spot swap can be done, including the exchange of warehouse receipts and paper goods. This is also a flexible use of traders' futures warehouse receipts.

Dong Li, Yihui Resources Holdings Limited, said.

In addition to normal futures warehouse receipt pactions, warehouse receipt repurchase is also very useful in industrial supply chain management.

"Warehouse receipt repurchase is that when trading companies receive raw materials from the finished products or downstream factories of the manufacturing enterprises, they sell the hedging in the futures market, and when the upstream and downstream businesses want to buy back the supply of goods, the trading company replaces the previous short positions."

Zou Jinlong said that in this process, trading companies as a bridge of industrial chain, in fact, is to earn the basis.

He further said, if one day

The price is very high. The spot price is 5000 yuan / ton. For polyester factories, there will be some gaps besides normal contracts.

But they see the spot price higher, when the replenishment cost is too high, so they do not want to buy it again.

While the PTA factory sees that the willingness of the lower reaches is not strong, it may make a profit of 100 yuan per ton, but the price of 4900 yuan / tonne may be higher than the psychological expectation of the downstream.

But for traders, this time can be fully accepted, and then thrown directly onto the futures market.

When the PTA spot price falls to 4500 yuan / ton in the future market, it may hit some PTA manufacturers' cost lines, and they have no desire to sell.

But polyester factories see that raw material prices are so low that they have a strong desire to take delivery.

At this time, even if the trader sells 4550 yuan / ton, the polyester factory will have the power to buy. The trade association will smooth out the futures position in advance and sell it to the downstream factories.

In this process, the industrial chain upstream and downstream have their own advantages and achieve a win-win situation.