With the approval of the State Council and the approval of the China Securities Regulatory Commission, PTA and methanol options were listed on the Zhengzhou Commodity Exchange on December 16. At present, PTA futures has achieved internationalization, and methanol futures will also actively start to introduce overseas traders. The introduction of PTA and methanol options will help promote the high-quality development of my country’s energy and chemical industry.
Cheng Xin, deputy director of the Futures Supervision Department of the China Securities Regulatory Commission, read out the relevant approval at the listing ceremony. After the listing ceremony, ZCE held a symposium on how PTA and methanol futures and options serve the real economy. The participating industrial companies exchanged and discussed how PTA and methanol futures and options can promote industry development and corporate risk management.
Industry insiders believe that the listing of PTA and methanol options marks another important step in the development and transformation of Zhengzhou Commodity Exchange, further consolidating Zhengzhou Commodity Exchange as the company with the richest varieties and the most complete tools The dominant position of the textile product derivatives trading center is also conducive to accelerating the formation of a pricing structure in which “global methanol looks to China, and Chinese methanol looks to Zhengzhou”.
Xiong Jun, Chairman of Zhengzhou Commodity Exchange, said at the listing ceremony that as “price insurance” tools, PTA and methanol options can complement the advantages of related futures varieties after they are listed, which is beneficial to Form a more reasonable futures price, promote the improvement of the market structure of Zhengzhou Commercial Exchange, enhance market service capabilities, and better meet the personalized and diverse risk management needs of entity enterprises.
“Carrying out PTA and methanol options trading can build a comprehensive and multi-level hedging for enterprises The system is conducive to enhancing the industry’s ability to resist risks and development resilience, and assisting the high-quality development of the energy and chemical industry.” Li Bin, vice president of the China Petroleum and Chemical Industry Federation, said that during the critical period for China’s petroleum and chemical industry to achieve high-quality development, Facing the complex and ever-changing market situation, the risk management systems of industries such as PTA and methanol urgently need to be further enriched and improved.
It is understood that PTA is a chemical product based on petroleum and is also the main raw material for chemical fiber. It connects the petrochemical industry and the textile industry, two important pillar industries of the national economy. Methanol is not only a basic chemical raw material, but also an emerging clean energy, involving many industries and fields such as energy, building materials, medicine, etc. my country’s PTA and methanol production capacities account for approximately half and 60% of the world’s total respectively, and both production and sales rank first in the world.
Zhengzhou Commodity Exchange launched PTA futures and methanol futures in 2006 and 2011. After the listing, the market functions of these two types gradually came into play. About 90% of PTA manufacturers and trading companies. About 80% of large-scale polyester companies use PTA futures to carry out hedging operations. Major methanol production companies and downstream methanol-to-olefins companies, and more than 90% of trading companies also actively participate in the futures market. The basis spread has become The main method of spot market pricing and trading. At the same time, the internationalization of PTA futures has been successfully launched, with overseas traders participating in an orderly manner, and the global influence of futures prices further enhanced.
The functions of PTA and methanol futures have been recognized by the industry. Li Bin said: “As my country steadily moves towards becoming a powerful country in the energy and chemical industry, energy and chemical futures varieties represented by PTA and methanol operate smoothly and orderly. As my country’s unique futures varieties, they play an important role in stabilizing enterprise production and preventing market risks. It has played a significant role in improving the market operation efficiency, stabilizing the expected profits of enterprises, promoting the horizontal expansion and strengthening of the industrial chain as well as the vertical extension and integration, and enhancing the international competitiveness and influence of my country’s PTA and methanol industry.” He said that he hopes that the general public On the basis of establishing and improving relevant internal control systems, industrial enterprises should understand, master and use new options tools, and actively explore new ways and models of risk management. The Petrochemical Federation will also work with Zhengzhou Commercial Institute to cultivate the market and promote the stable operation and effective function of PTA and methanol options.
Xiong Jun said that the next step of Zhengzhou Commercial Exchange is to do a solid job in market promotion and cultivation based on the needs of physical enterprises and market operation conditions, and continuously optimize relevant product rules and regulations. Continue to improve the market maker mechanism, actively guide domestic and foreign related industrial chain enterprises to use the futures and options market, give full play to the functions and roles of the futures and options market, and better assist the transformation and upgrading of the real economy.
The second is to put the prevention and control of market risks in a more important position, strengthen the monitoring and control of market operations, improve the risk research and judgment working mechanism and risk disposal plans, and resolve potential risks in a timely manner , to promote the smooth operation of the market. Adhere to supervision in accordance with laws and regulations, severely crack down on various violations of laws and regulations, and maintain market fairness and justice.
The third is to accelerate product and business innovation, launch options such as rapeseed meal, promote the listing of the first energy and chemical ETF, and promote the introduction of more qualified futures varieties such as methanol to overseas traders. Continuously improve the product tool system, continue to expand opening to the outside world, and strive to make new and greater contributions to serving the real economy, serving national strategies, and accelerating the construction of a modern economic system.
So far, Zhengzhou Commodity Exchange has listed 4 commodity futures options, making it the futures exchange with the most listed commodity futures options in China. Zhengzhou Commodity Exchange’s sugar options and cotton options were listed in 2017 and 2019 respectively. Since the listing of sugar and cotton options, the market has operated stably, the scale has continued to expand, and investors have entered the market in an orderly manner.��The price is reasonable and effective, the effect of serving the real economy is beginning to show, and the market is showing a good development trend. As of November 30, the total trading volume of Zhengzhou Commodity Exchange options this year was 9.583 million lots (unilateral, the same below), and the average daily position was 209,000 lots, an increase of 124.5% and 79.7% respectively compared with the same period last year. </p
