June 27, 2018 China Plastics Industry Conference to be held in Hangzhou, the guests were on the recent development characteristics of China's plastics industry and future trends in the discussion. Experts said that in 2017 the plastics industry generally good run, but by the crude oil and coal rising raw material costs, ban imports of waste plastics, overcapacity and other comprehensive factors, further exacerbating market volatility. more enterprises to actively carry out the transformation and upgrading, changing risk management ideas and initiative to use plastics futures market risk management tools.
Futures prices have won industry recognition
Chen Wei Industrial Division Director DCE in his keynote address pointed out that since 2007, LLDPE, PVC and PP futures DCE has in the market, has become the world's largest plastics futures market for hedging industrial customers and pricing provides an effective tool in 2017, LLDPE, PVC and PP plastic three varieties of volume (unilateral, the same below) total 157 million hand, 14.3% of the total volume of DCE which, PVC futures trading volume, daily both positions were 39 million hand, 111 700 hand, an increase of 247%, 56% currently the proportion of plastic enterprises to adopt Basis trade in spot trading in more than 70%, the futures price has won industry recognition.
Delivery terms, 2017 LLDPE, PP and PVC deliveries were 70,570 tons, 47,860 tons and 59,110 tons, stable and smooth delivery process. Up to now, the three major plastics futures delivery warehouse to expand to 30, covering North, East, South, Southwest Other regions.
It is worth noting that in recent years, PVC futures market transactions have increased significantly, mainly due to the brand delivery system implemented in 2015. In 2017, PVC futures added registered brands approved by the two markets in Erdos, Inner Mongolia and Tangshan Sanyou, effectively expanding. Delivery range. Currently PVC futures have 13 registered brands including one exemption-free brand. '2017 PVC futures hedging efficiency reached 92%, and current price correlation reached 0.96, which is in line with the implementation of the registered brand system. Not open. 'Chen Wei introduction.
To promote the use of futures by industrial clients, DCE has organized large-scale industrial conferences and trainings in recent years including EDP training in the chemical industry. As futures are recognized by more and more industrial customers, they participate in the plastics futures industry. The number has increased year by year, and futures have penetrated into the management of the entire plastics industry chain. In 2017, 7953 industrial customers participated in plastics futures, a record high. The volume of industrial customers accounted for 23.6% and 47.7% respectively. , year-on-year increase of 2.2%, 0.7%.
According to relevant market participants, the fundamentals of domestic PE and PP markets have changed in recent years, domestic PE and PP capacity have maintained double-digit growth rates for many years, overseas gas chemical capacity has increased, and non-mainstream imports in Iran, Nigeria, and the United States have been low. The price advantage influxed into the domestic market. In addition, due to policy factors, China will gradually stop importing waste plastics, which will help increase the domestic price of recycled plastics and drive up the cost of the entire plastics industry.
Continue to optimize the contract system
In order to adapt to the changes in the spot market and further serve the customers in the plastics industry, Dashang will continue to optimize the contractual system and further reduce the cost of industrial hedging. First, optimize the delivery system for PVC futures brand. Strengthen brand management, dynamically adjust the delivery brand, and commission inspections each year. The agency tests the registered brand products in the market, and the test results serve as an important basis for whether or not to retain the registered brand, so as to establish a market-based dynamic adjustment mechanism. At the same time, the scope of exemption-free brands should be appropriately expanded to facilitate the convenience of futures delivery. It promotes the delivery brand system to LLDPE, PP varieties, and implements the exemption inspection system for mainstream brands that are recognized in some markets. The delivery brand is determined by the exchange based on the relevant delivery brand system. The third is the pilot trader exemption inspection system, and the exchange is certified according to relevant rules. Traders registered brands, certified brands can implement exemption. Fourth, to adapt to changes in the spot pattern, plans to increase Beijing and other places as a delivery area. Fifth, the iron ore futures operating on the maturity of the norms of the traders factory system, in the plastic futures The market promotes the construction of traders' factory warehouses, perfecting the delivery Cutting system. Sixth, it promotes continuous contracts and is active in recent months. It sets up warehouse receipt service providers on plastics futures, encourages customers to participate in recent month contract transactions, and improves corporate hedging efficiency.
While promoting the optimization of the contract system, DCC will continue to promote the construction of the OTC market, continuously optimize the upgrade transaction and clearing platform, develop more index products, encourage the promotion of point trade, OTC options and OTC swap business; Develop more new varieties, such as promoting the listing of ethylene glycol futures, researching styrene, benzene and other upstream raw materials and low-density polyethylene, high-density polyethylene and other more finished product varieties, to provide a more complete and rich future for the plastics industry Variety system.