How To Play An Important Role In The Win-Win Situation Of The Industry Chain Is The Focus Of PTA.

Trading companies in the middle of the PTA industry chain are no longer the traditional "low buy high sell" traders, but to open up all links of the supply chain and build a platform for the win-win of the whole industry chain.

Besides the normal futures warehouse receipt paction, warehouse receipt repurchase business is playing a more and more important role in industrial supply chain management.

The so-called warehouse receipt repurchase, that is, after the intermediate traders pick up the raw materials of the finished products or downstream polyester factories of the PTA production enterprises, sell the hedging in the futures market, and when the upstream and downstream businesses have to buy back the goods, the traders in the middle of the market will further reduce the previous short positions.

PTA has been listed for nearly 10 years, and the recognition of spot enterprises has gradually increased, from initial ignorance or even exclusion to the recognition and active participation of today.

What is the role of PTA futures in relieving the stock pressure in the whole market? How to play an important role in the win-win situation of the industry chain? In the past 3 years, the volume of PTA futures warehouse receipt has increased year by year.

In 2014, the warehouse receipt reached a maximum of 400 thousand tons and reached 800 thousand tons in 2015. Up to this year, the highest is around 960 thousand tons.

So-called

It is a physical delivery certificate issued by the futures exchange which specifies the delivery warehouse in accordance with the prescribed procedures and meets the quality stipulated in the contract.

As a means of circulation, futures warehouse receipts can be used for the delivery of loans or futures contracts.

Up to now, the PTA futures of General Administration of commerce are using general warehouse receipts, which means that the buyers get them.

After the warehouse receipt, you can deposit the currency as if you had the bank passbook.

Cao Mingji, deputy general manager of Zhejiang Yisheng Petrochemical Company Marketing Center, told reporters that spot stock is the basis of futures warehouse receipts. The larger volume of futures warehouse receipts is related to excess capacity of PTA industry in spot market.

Although the inventory can be adjusted through the factory operating rate, there will still be a small number of on the way stock and safety stock of production enterprises.

In the period when PTA futures were not listed, stock wharf or factory warehouse became the object of market concern, and most of them were invisible inventory, so the market could not understand the actual supply and demand accurately and objectively.

Assistant to general manager of logistics and commodity derivatives division, Xiangyu, Xiamen

It seems that the advantages of PTA futures warehouse receipts to the industry include reducing inventory holding costs, making it easier for production enterprises to pick up goods nearby, saving time and logistics costs, and gradually becoming dominant in industrial inventories, which is helpful for price discovery on both sides of market supply and demand.

Xie Haisu, deputy general manager of Limited by Share Ltd Trade Department of Xiamen China World Trade Center Group believes that the dominance of social inventories has brought great convenience to the production, operation and management decisions of the upper, middle and lower reaches, and the efficiency of inventory realisation and procurement has also been greatly improved. For the traders in the middle market, the real supply and demand of the upstream and downstream businesses are conducive to making more precise judgments and decisions, and playing a pparent role in supervision.

"In short, as a PTA manufacturer, there is no shortage of goods in the upstream market, because the Central Trade Association catches up and digests the goods in time. For downstream polyester factories, when the price is low, they can buy goods in time to fill the gap of raw materials, and for traders themselves, they earn a certain price difference through hedging, and they also get profits."

Zou Jinlong, a futures analyst at the Ministry of chemical industry, Ltd.

In addition, Xie Haisu said that although the clothing trade enterprises in Jiangsu, Zhejiang and Shanghai consume more than 70% of China's PTA consumption every year, a large part of PTA's producers come from Hainan and Liaoning. In recent years, if there are extreme weather such as typhoons, they may cause up to a week or even half a month's suspension and outage. The tightening of spot leads to the rise of futures, which will bring a temporary impact to the market.

However, with the increasing number of delivery warehouses in Jiangsu, Zhejiang and Shanghai, the intermediate traders can play a bigger role in "bridging". Downstream enterprises can extract goods from the futures silos, which not only avoid risks in pit, but also save freight costs, and have achieved good results.