PTFE, PFA, FEP, PVDF Fluoroplastic products industry experts
Point price model effectively improves the efficiency of the plastic industry.
Classification:
Industry dynamics
Author:
PTFE tube little sister
Source:
PTFE tube little sister
Release time:
2015-06-27
Visits:
The plastic chemical futures market is currently listed in the linear low-density polyethylene (LLDPE), polyvinyl chloride (PVC) and polypropylene (PP) three varieties of in stock market size, commodity rate is high, so that it has a good foundation to carry out futures trading. With the enrichment of plastic futures varieties and the formation of industrial risk aversion chain, the market function has been brought into full play, and the attitude of in stock entity enterprises towards the futures market has experienced wait-and-see, learning, and participation in the formation of their own business models and trading strategies. The maturity of futures tools has witnessed the mature development of Dalian plastic futures market, and also reflects the effective docking of industry and finance.
At the "2015 China Plastics Industry Conference" recently held in Chengdu, Sichuan, Wang Xiaofeng, general manager of the research department of Broad Petrochemical Co., Ltd., said that the good use of the functions of the plastic futures market has effectively improved the efficiency of industrial operations, and the models for enterprises to use futures have become increasingly rich.
Wang Xiaofeng said that Broad's use of futures tools has gone through a process from passive participation to active participation. After LLDPE futures were listed in the big trading house in 2007, enterprises mainly hedged through futures delivery, and the use of futures was in the "embryonic stage". After 2009, with the enrichment of futures varieties, enterprises began to actively participate in the futures market, adopting various modes such as futures arbitrage, basis difference trading and cross-variety trading, enterprises use futures to enter the "business model" stage. After 2014, enterprises began to use futures tools to innovate business models, through over-the-counter trading, external inventory management and other models to help enterprises expand their living space.
The understanding of futures tools and the richness of business models have also changed with the development and improvement of the plastic futures market, and the functions of futures varieties have effectively promoted each other. Enterprises have also formed a business model suitable for their own use of futures, and effectively used it, and achieved better results. effect. "The use of futures by enterprises has shifted from profit-oriented to service industries." Wang Xiaofeng said. Among them, thanks to the effective convergence of futures and cash prices, the operation mode of the combination of futures and cash has become one of the core modes mainly used by enterprises. The reporter learned that the enterprise uses the better variety of period and present linkage to study and judge the market trend. Such as the LL1501 contract in last year's "11" long holiday at the end of the first working day, the in stock stabilized, the downstream replenishment transaction is good, but the futures price appeared a large decline, so that the downstream procurement enthusiasm dissipated, in stock also began to follow the futures price decline, futures prices led the in stock trend. Later on December 11-12 LL1501 contract price experienced two days of stabilization, the downstream replenishment expectations are strong, the in stock market procurement efforts increased on the 15th, pushing up the in stock, futures prices follow the in stock rise, reflecting the in stock market on the futures drive.
In addition to the traditional model, the futures "point price" model has also begun to affect the plastic market order model. Wang Xiaofeng said that in 2014, the price of raw crude oil fell sharply, but the decline in corporate order prices was small, downstream products were more profitable, and futures prices were more in stock discounted. At the same time, downstream factories basically stopped using recycled materials and bought new materials instead of recycled materials. Enterprise demand was further enlarged, while inventory was very low during the same period, and downstream buyers had the motivation to rebuild inventory. Based on this background, Broad Petrochemical began to conduct spot price operations on the PP1501 contract to help the plant lock in downstream orders in advance. On the one hand, the use of the "point price" model is the enterprise as a link, which facilitates downstream delivery and promotes the effective convergence of futures and cash. On the other hand, the "point price" model improves the downstream pricing ability and increases the enthusiasm of buyer enterprises to participate in the futures market, and the shift from the "in stock price product" model to the "futures price order model" will expand the voice of the previously relatively weak downstream buyer enterprises and further improve market efficiency.
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