On August 10th, the "Jinshan Liquor-Industrial Risk Management (Online) Forum", supported by the Zhengzhou Institute of Commerce and jointly organized by Jinshan Chemical Group and Zhongyuan Futures, was successfully held. This is also the first time that the soda ash industrial base has carried out market training activities. At the meeting, taking into account the situation of serving the real economy since the listing of soda ash futures, Jinshan Chemical Group shared its experience in participating in futures. The guests at the meeting fully discussed current hot issues in the soda ash industry. From the perspective of participation, the market has a high degree of attention, with 1,800 people watching online.
Futures Daily reporter learned that since the soda ash futures were listed on the ZCE on December 6, 2019, they have been operating relatively smoothly, with good price discovery functions and active customer participation in the industry chain. The delivery of the soda ash futures contract in 2009 is imminent. The number of registered warehouse receipts and effective forecasts exceeds 9,000, which is equivalent to more than 180,000 tons of soda ash spot. Enterprises in the industry chain have significantly increased their awareness of using futures market tools to help production and operation.
In order to promote the coordinated development of the spot market in the soda ash and glass industry chain, and the deep integration of industry and finance, Jinshan Chemical Group gives full play to its leading position in the industry and the advantages of the ZCE industrial base to build a bridge between the futures market and the physical industry and plan a series of Industry chain training activities, this forum is the first phase of a series of activities.
"Through excellent upstream and downstream industrial enterprises to share their own models, mechanisms and experience, to help solve the problems that industrial enterprises may encounter in the process of participating in futures, so that more industrial enterprises can learn and use futures tools." Jinshan Chemical Group Futures Department The person in charge Yao Long told a reporter from the Futures Daily.
According to Yao Long, since the beginning of this year, due to the substantial increase in soda ash production capacity, the superimposed epidemic has caused a shrinking demand on the side and the price of soda ash has fallen sharply. The production and operation of enterprises have been greatly impacted, which has increased the difficulty of enterprise risk management. Soda ash production companies represented by Jinshan Chemical Group and Yuntu Holding Group actively use futures tools for hedging to ensure the stability of the industry's supply chain.
"The risks of soda ash enterprises this year are mainly concentrated in three aspects: raw materials, inventory, and prices. Individually operating spot products also face exposure risks. Enterprises need to establish a correct understanding of soda ash futures, and effectively classify, identify and manage risks." Yao Long said , In the specific operation, soda ash companies need to pay attention to the quantity and price, and grasp the opportunity.
"This meeting is a meeting of spot industry veterans and futures trading experts to answer the problems encountered by companies using the futures market for risk management. At the same time, they will discuss how soda ash futures will serve entity companies in the future, and participate in futures for upstream and downstream companies in the soda ash industry chain. It has brought some help and reference." Zhou Tao, an analyst at Centaline Futures, said that as the co-organizer of this conference, Centaline Futures will continue to actively promote upstream and downstream companies in the industry to understand and participate in the futures market, and assist industrial bases in jointly promoting the construction of the futures market. , To promote futures market price discovery and risk management functions to better play.
The relevant person in charge of the ZCE said at the meeting that the industrial base is an important starting point for ZCE to serve the real economy. He hopes that through the construction of the industrial base, the demonstration and driving role of the cooperative units will be fully utilized to promote the high-quality development of related industries.
"The soda ash industry base assumes the responsibility of the exchange to cultivate industries and serve entities. We are obliged to guide upstream and downstream enterprises in the industry chain to actively participate in the futures market, rationally use futures tools, and escort the stable operation of enterprises." Yao Long said that in the future, enterprises will Continuously improve the cognition and ability of all aspects of futures business, cultivate professional talents, build bridges and ties between enterprises, promote in-depth exchanges and communication between industries and upstream and downstream enterprises in the industry chain, and do a good job in market cultivation and service. The stable operation of the enterprise is escorted.
Source: Chemical Network
