The influence of polyester international pricing has increased significantly

PTA futures is the first chemical product in my country's futures market and the first chemical product introduced to overseas traders. 2018 is a critical year for my country's futures market to "go global", and PTA futures successfully introduced overseas traders. This year, ZCE’s road to internationalization has also continued to advance, and the delivery business has continued to develop in the process, from the first overseas brand to generate futures warehouse receipts to bonded delivery, exploration of overseas warehouse establishment and delivery, etc. The "international style" of ZCE.

In the eyes of industry professionals, the mature PTA futures market has given the world a new understanding of China's polyester industry. In addition to "Chinese weaving", there is also the "Chinese price" as the weather vane of the global polyester industry.

In the international commodity trade, futures prices are one of the main pricing benchmarks, most of which are based on the futures prices of mature European and American exchanges. Some products of ZCE are constantly developing and opening to the outside world, especially the global unique products that are listed on the market. Some of them have obtained international pricing power, which has improved the overall international competitiveness of the industry. Among them, PTA is the most prominent. From the upstream point of view, China’s imports of PX in the past five years have been more than 10 million tons. With the gradual maturity of PTA futures, the price of PTA futures has become an important reference factor in the price negotiation of PX Asian contracts, and the initiative has begun to transfer to domestic PTA Enterprises are tilted; from the downstream perspective, 35% of the output of polyester bottle flakes in 2019 is sold abroad. Domestic manufacturers and foreign companies will unanimously refer to PTA futures prices when negotiating annual orders and contracts, avoiding vicious competition; November 30, 2018, As a specific product, PTA is introduced to overseas traders. At present, well-known international companies such as BP and Goldman Sachs have participated in PTA futures, and their international pricing influence will be further enhanced in the future.

On April 22, 2019, ZCE’s designated bonded delivery warehouse Zhangjiagang Free Trade Port Area Port Co., Ltd. accepted the delivery forecast of bonded warehouse receipts, and officially launched the bonded delivery business on May 2, 2019. The PTA bonded delivery business promotes overseas traders to participate in futures trading.

 At present, the proportion of foreign traders' transactions in the PTA futures market has reached 8%, and the business models of overseas PTA industry chain customers using PTA futures point pricing are becoming more and more mature.

After the introduction of foreign traders in PTA futures, some important foreign companies in the industry chain have gradually participated in the market in more ways, and the internationalization of PTA futures has been further enhanced. On February 14, 2020, ZCE added Zhuhai Bipi Chemical Co., Ltd. (hereinafter referred to as Zhuhai Bipi) as the PTA futures delivery warehouse, marking the gradual deepening of the internationalization of PTA futures trading and delivery.

It is understood that Zhuhai Bipi, as the holding company of BP, is one of the important producers of PTA with an annual production capacity of 2.35 million tons. ZCE has set Zhuhai Bipi as a PTA futures delivery warehouse to facilitate foreign companies to participate in the futures market, and will gradually drive other industrial customers in southern China to participate in PTA futures.

The relevant person in charge of the ZCE said that in recent years, ZCE has continuously optimized the PTA delivery system. With the efforts of all parties in the market, PTA futures trading positions have steadily increased. Next, ZCE will continue to closely follow the changes in the PTA spot industry pattern and the needs of industrial customers, continue to optimize the PTA futures delivery system, improve transparency, reduce delivery costs, and promote the use of PTA futures tools by global polyester companies.

In the polyester and textile industry chain, staple fiber, as the link between cotton and PTA, is closely related to the two varieties. The listing of staple fiber futures will provide more arbitrage opportunities for the polyester industry and cotton spinning industry. "Old and new" will help increase market activity and better and faster lead the staple fiber futures to mature.

Staple fiber futures will form an industrial hedging combination with the existing PTA futures. Investors can easily establish a staple fiber virtual factory on the futures market and flexibly expand or shorten fiber production profits. According to industry sources, staple fiber manufacturers can use staple fiber, PTA and ethylene glycol futures to lock in profits. For example, the short fiber processing fee appears at a certain time, combined with the company's production and marketing plan to buy raw materials and sell the short fiber to lock in profits, and the future saleable output can be divided into different contracts to futures to obtain relatively considerable hedging. profit.