Fujian'S First "Mask Option" Landing

Since the outbreak of the new crown pneumonia, the demand for respirators has increased rapidly, and respirators have become one of the most urgent protective devices. The main raw materials of medical masks are polypropylene, and the price fluctuates greatly. Manufacturers are faced with the risk of raw material prices.

In response to Fujian's anti epidemic appeal, in January 23, 2020, the Xiamen Mei run nonwoven Limited by Share Ltd, which had already been on holiday, made an emergency plan to arrange overtime masks during the Spring Festival. At present, Xiamen Mei run can produce 500 thousand to 1 million masks a day. For Xiamen Mei run, the price of polypropylene, which is the main raw material of its production, has a great impact on the production cost of the company. At present, the stock of raw materials is relatively tight, and is facing the risk of declining profitability due to the rise in polypropylene prices.

Having learned of this situation, Xingxian Futures Co., Ltd., a wholly owned subsidiary of Xingxian Risk Management Co., Ltd., responded positively to the call for financial assistance in the medium term, and played its own professional advantages. It jointly made a PP2005 leveling Asian call option with a price of 7038 yuan / ton for the Xiamen fair, which was jointly established by the Xiamen branch of Xingye Securities Co., Ltd., with a scale of 300 tons, which is equivalent to 40 million guarantees. The raw material cost of the respirator.

The over-the-counter option can be understood as an insurance. When the purchase price exceeds the agreed standard (i.e. the right price), it is compensated by risk management. When the purchase price is lower than the agreed standard (i.e. the right price), the enterprise itself has no losses, and the price of raw materials also lowers the cost of production and stabilizes the production expectation.