On October 12, with the approval of the State Council and the approval of the China Securities Regulatory Commission, short fiber futures were officially listed for trading on the Zhengzhou Commercial Exchange, with the trading code PF. The benchmark price of the first batch of five listed contracts was 5,400 yuan/ton.
Short fiber is an important raw material for my country’s textile and apparel industry. plays an important role in total fiber production. my country is also the world’s largest short fiber producer and exporter, with export destinations covering more than 100 countries and regions.
In recent years, due to the impact of multiple factors such as the economic operating cycle, raw material costs, changes in supply and demand structure, and export situations, short fiber prices have fluctuated more frequently. Staple fibers are mainly sold using the spot sales model, and prices follow the market. Industrial enterprises face certain price risks, which is not conducive to the stable operation of the industry. There is an urgent need for industrial chain companies to use financial instruments to manage market risks.
Since the cost of PTA raw materials accounts for 62% of the total cost of short fiber, after the Zhengzhou Commercial Exchange listed PTA futures in 2006, short fiber manufacturers can use PTA futures Avoid the risk of price fluctuations of major raw materials. However, companies lack effective forward price guidance and hedging tools on the sales side. Listed short fiber futures provide forward price guidance for the market, which is conducive to guiding industrial enterprises to purchase and sell rationally, improve the ability of industrial enterprises to resist risks, and promote industry stability. develop.
The listing of short fiber futures will help improve the futures variety system of the polyester industry chain and meet the risk management needs of upstream and downstream enterprises; at the same time, it can bring into play the agglomeration effect of varieties and improve futures market services. The level of polyester industry and textile industry will further enhance the global competitiveness of domestic polyester staple fiber enterprises.
The reporter learned that staple fiber has the characteristics of marketization and high standardization, easy implementation of warehousing and quality inspection, and sufficient market supply for delivery, which meets the basic conditions for futures trading. . There are 34 domestic short fiber manufacturers. Products of the same specifications from different companies are highly homogeneous. Companies mainly adopt a sales strategy that follows the market, with full price competition and a large spot market. The delivery target of short fiber futures is 1.56dtex×38mm spinning staple fiber that meets the national standard of high-quality products. Calculated based on the 2019 production data, all products circulating in the market can meet the delivery standards, and the theoretical delivery volume is about 2.92 million tons. At present, my country’s polyester staple fiber production capacity continues to expand, and the number of products available for delivery is expected to continue to increase.
As of October 9, 2020, the average spot price of direct-spun staple fiber CCF is 5,435 yuan/ton, with a basis difference of 35 yuan/ton, which is basically in line with market expectations. The recent spot price has fluctuated in the range of 5,300-5,500 yuan/ton, and the listed benchmark price is basically consistent with the current average spot price.
The published short fiber futures contract rules are highly consistent with PTA, which is conducive to the development of PTA and short fiber arbitrage. In addition, short fiber futures implement factory and brand delivery, which can reduce the risk of warehousing deterioration, ensure the quality of delivered goods, and eliminate enterprises’ concerns about receiving goods.
Industry insiders believe that after the listing of short fiber futures, manufacturing companies can avoid raw material and product price risks at the same time and lock in processing profits. Through cross-variety arbitrage of PTA-short fiber, a virtual factory can be established to earn processing profits, so that the price difference between the two can be stabilized at a reasonable level. Short fiber and cotton are both textile and apparel raw materials. The listing of short fiber futures can further increase the internal linkage of upstream textile products, enrich the path options for price risk avoidance of textile and apparel enterprises, and provide help for the stable development of the industry.
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