Affected by the COVID-19 epidemic, the mismatch between the upstream and downstream industries has led to a significant increase in PTA spot market inventory recently, and manufacturing companies are facing greater sales pressure. At this time, some companies use the risk management function of the futures market to convert spot inventory into futures warehouse receipts and sell them in far months, which not only solves the inventory problem, but also effectively alleviates financial pressure.
Data show that as of March 4, PTA futures warehouses and effective forecasts totaled 650,000 tons, and the volume of warehouse receipts increased by 289.2% compared with February 3. On March 6, the Zhengzhou Commodity Exchange issued an announcement to add temporary storage points to the designated PTA delivery warehouse Pinghu Huarui Storage Co., Ltd.
In this regard, industry insiders believe that the surge in PTA futures warehouse receipts in the past month is mainly due to companies registering goods as far-month futures when inventory pressure in the spot market is high and storage capacity is insufficient. Warehouse receipts are used to alleviate the spot sales pressure of production companies. This shows that PTA industry chain companies have a relatively mature understanding and application of the futures market. When the industry encounters a “black swan” event, they can flexibly use a variety of means to adjust production and operations.
Analysts believe that PTA spot companies have a good market foundation for using futures warehouse receipts for inventory management. First, since the listing of PTA futures 14 years ago, the participation rate of industrial customers has steadily increased, and the industry has a better understanding of the functional role of varieties. It is relatively in place; secondly, Zhengzhou Commodity Exchange has implemented the universalization of PTA futures warehouse receipts based on its spot circulation habits, which has greatly promoted the circulation of PTA warehouse receipts. Therefore, in recent years, PTA futures warehouse receipts have become an effective reflection of spot inventory, and also fully reflect the financial attributes of physical commodities converted into property certificates.
In response to the actual needs of spot companies using the futures market for inventory management during this epidemic, ZCE has taken multiple measures to provide relevant delivery services to meet the warehousing needs of industrial customers. . At present, Zhengzhou Commodity Exchange has mobilized and coordinated 19 PTA futures delivery warehouses to carry out warehousing, scanning and transmission of application materials to ensure business operation efficiency.
In order to provide delivery services during the epidemic prevention and control period and meet the risk aversion needs of the PTA spot industry, ZCE promptly formulated corresponding measures to ensure the normal operation of the warehouse receipt business.
First, coordinate the delivery warehouses to carry out delivery work. Zhengzhou Commodity Exchange promptly completed the epidemic prevention and control investigation of the delivery warehouses and the time for resumption of work and production, and sent the “Designated Delivery Warehouses (Factories) During the Epidemic Period to Carry out Related Businesses in an Orderly manner” “Requirements”, assist the delivery warehouse in warehousing, transfer of warehouse receipt registration application materials, etc., as well as delayed circulation of storage fee invoices.
The second is to fully guarantee the delivery warehouse capacity. In order to meet the warehousing needs of industrial customers, a PTA delivery factory was added in a timely manner. The warehousing link is avoided when the factory warehouse receipt is generated, improving the efficiency of warehouse receipt generation.
The third is to increase temporary inventory points. Due to changes in spot inventory, the volume of PTA futures warehouse receipts has significant cyclicality. Zhengzhou Commodity Exchange has actively explored new models and added temporary inventory points to ensure the PTA futures delivery base and meet the warehousing needs of some industrial customers. The fourth is to add inspection-free brands to reduce the cost of warehouse receipt generation.
Industry insiders believe that as the first chemical product to be listed in the domestic futures market, PTA futures is the first in China to achieve full coverage of futures options, domestic and overseas, on-site and off-site, and is highly compatible with futures and spot prices. Chemical varieties. PTA futures trading positions are high, warehouse receipts are well circulated, and market functions are effectively functioning. During the period of resumption of work and production, the PTA futures market fully embodies price discovery and other functions. Production companies expand sales through the circulation of warehouse receipts, and downstream polyester companies establish virtual inventories. Raw materials have been prepared to help the polyester industry chain achieve stable operations.
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