Zhengzhou Commodity Exchange adds a new short fiber delivery brand, further expanding the supply of short fiber deliverables

On March 9, the reporter learned from the Zhengzhou Commodity Exchange that recently, “Xinfengming (Zhonglei)” of Huzhou Zhonglei Chemical Fiber Co., Ltd. became a new designated short fiber delivery product of the Zhengzhou Commodity Exchange. brand. So far, the number of short fiber futures delivery brands of Zhengzhou Commodity Exchange has increased to 14, and the proportion of delivery brand production capacity in domestic production capacity has increased to 66%.

Since its launch in 2020, short fiber futures have been operating smoothly, futures and spot prices are closely integrated, futures functions have been effectively exerted, and industry participation and recognition have continued to increase. Among them, delivery has become one of the biggest highlights since the listing of short fiber futures, with a total of 50,000 lots delivered, equivalent to 250,000 tons of spot goods. In the past three years, market trading volume has steadily expanded, and industrial customers’ participation in short fiber futures delivery has further increased. In 2022, the average daily turnover of short fiber futures was 274,800 lots, and the average daily position was 452,100 lots. Legal person customers accounted for 89% of the positions. Short fiber manufacturers, which account for about 50% of the total domestic production capacity, use futures to hedge risks.

The delivery brand system will be implemented when short fiber futures are launched. Zhengzhou Commodity Exchange has added 13 delivery brands in three batches. The delivery brands correspond to enterprises with an annual production capacity of more than 5 million tons. It is reported that Huzhou Zhonglei, a manufacturer of short fiber products under the “Xinfengming (Zhonglei)” brand added by Zhengzhou Commercial Exchange, is a holding company of Xinfengming Group Co., Ltd. The company’s short fiber project will start construction in 2020 and be put into production in November 2021.

“The brand awareness of enterprises with futures delivery qualifications in the industry will be improved.” Zhang Sixi, assistant to the president of Xinfengming Group, said that after “Xinfengming (Zhonglei)” became the delivery brand of Zhengzhou Commodity Exchange, the market The influence will be further enhanced. For downstream enterprises, the short fiber received for delivery will also have morequality guarantee.

Jiang Shan, deputy general manager of Fujian Jinsha Port Textile Co., Ltd., said that the exchange has strict quality control over short fiber delivery products and controls risks during the delivery process to ensure the normal operation of the delivery process. The addition of a new short fiber delivery brand will bring the futures market closer to the spot market, give full play to the functions of the futures market, and better serve the short fiber industry.

“For traders, we have always hoped that more factories will participate in the futures market, especially factories with production capacity. We also expect more delivery brands to participate in futures delivery, enrich the inventory structure, and meet different needs. The differentiated individual needs among yarn mills also provide greater attraction for traders to participate in futures delivery.” said Hong Weihuang, general manager of Xiamen Guomao Petrochemical Polyester Department.

The relevant person in charge of Zhengzhou Commodity Exchange said that as more and more futures brands participate in delivery, the transaction costs of the short fiber futures market are gradually reduced, upstream and downstream enterprises can participate more conveniently, and the futures function will be used more effectively.

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