Polypropylene, polyvinyl chloride and linear low-density polyethylene options were listed simultaneously on the Dalian Commodity Exchange on the 6th. This is the first listing of plastic chemical options by Dashang, and it is also the first time that my country has listed three option products simultaneously on a futures exchange.
At present, my country has listed 16 commodity options, involving many commodity sectors such as agricultural products, metals, energy, and chemicals. The commodity option market has entered the fast lane.
Like futures, options are important basic derivatives in mature international markets and play an irreplaceable role in helping industrial companies find prices and mitigate risks. Accelerating the development of options steadily is an important part of the CSRC's overall plan to strengthen the derivatives market construction and serve the risk management needs of entity companies. It is also a specific measure to serve the "six stability" and "six guarantees" work.
Since the beginning of this year, due to various factors such as the New Coronary Pneumonia epidemic, the global industrial chain and supply chain have been blocked, and the commodity market has fluctuated violently. In this context, China's derivatives industry has opened a series of "combination punches" through the timely opening of the market after the Spring Festival, reducing transaction costs, directional support to the development of enterprises in epidemic areas, timely recovery of night trading, and orderly increasing the supply of on- and off-site products. Support industrial enterprises to hedge risks.
In the first five months of this year, the futures market was active, with a futures turnover of 2.03 billion lots and a turnover of 134.56 trillion yuan, an increase of 46% and 29% year-on-year, respectively, making a positive contribution for Chinese enterprises to face the international market and effectively respond to market risks.
Fang Xinghai, vice chairman of the China Securities Regulatory Commission, said that this year’s experience has once again proved that the futures derivatives market is an indispensable and important part of my country’s socialist market economic system. At present, my country's economic society is accelerating its recovery and development, and it is still facing greater pressure from the economic downturn. The China Securities Regulatory Commission will resolutely implement the requirements of the Party Central Committee and the State Council, follow the principle of "building a system, non-intervention, and zero tolerance", adhere to the "four awes, one joint force" supervision concept, accelerate the pace of reform and innovation, and continuously improve the quality of market operations. Unswervingly promote the opening up.
The petrochemical industry is not only a resource-based industry, but also a capital-intensive and technology-intensive industry. The technical level of the petrochemical industry is a concentrated expression of a country's economic development level and technological innovation capability. my country is not only a major country in the production and consumption of petrochemicals in the world, but also the fastest growing and most promising market for the consumption of petrochemical products in the world.
This year, prices of commodities such as crude oil and iron ore fluctuated sharply. The plastics and chemical industry has an urgent need to manage the risk of price fluctuations with lower cost and more sophisticated strategies. Polypropylene, polyvinyl chloride and polyethylene are the three most important general-purpose synthetic resins, and they play an important role in the industrial economy.
At present, the petrochemical market gap caused by the new coronary pneumonia epidemic is being repaired. From the operation data of petrochemical industry in May, the main indicators are improving. As a futures market for economic development "forecasters", the timely launch of the three major option products will provide a reliable reference for the petrochemical industry and enterprises to better grasp market trends, help accelerate the construction of a comprehensive risk management system for the petrochemical industry, and further meet the chemical industry Chain refined risk management needs.
Taking PVC as an example, my country is the world's largest producer and consumer of PVC. As an important organic synthetic material, PVC is widely used in industries, construction, agriculture, daily life, packaging, electricity, public utilities and other fields. In recent years, my country's PVC market has continued to expand, with a production capacity of over 24 million tons in 2019, accounting for more than 40% of global production capacity; annual production and annual consumption have both increased steadily and have now exceeded 20 million tons.
With the deepening of the supply-side structural reforms and the implementation of relevant environmental protection policies, the structural optimization and merger and reorganization within the superposition industry, the fluctuation of the spot price of polyvinyl chloride continues to intensify, and spot companies are eagerly looking forward to the listing of polyvinyl chloride options. More refined risk management.
Zhang Peichao, deputy secretary general of China Chlor-Alkali Industry Association, told reporters that the listing of PVC options will form a synergy with PVC futures, build a more complete risk management tool system, and provide more risk aversion tools for PVC industry chain enterprises And strategies to meet the personalized and precise risk management needs of industrial enterprises.
Fu Xiangsheng, vice chairman of the China Petroleum and Chemical Industry Federation, said that the simultaneous listing of three chemical option products of polypropylene, polyvinyl chloride and linear low-density polyethylene will help speed up the construction of a comprehensive risk management system for the petrochemical industry and further satisfy the chemical industry The demand for refined risk management in the industry chain.
Experts suggest that relevant companies should deepen their understanding of the futures market, actively and prudently participate in futures, and make full, scientific and effective use of futures tools to guide production and operation and carry out risk management
