PTA: Futures Spot Price Mode Prevails

With the further expansion of the PTA futures contract 1501 and the 1505 contract, the PTA futures pricing model began to appear. "PTA point price mode is mainly prevalent in the market after the current arbitrage opportunities." Wu Wenhai said that the buyers and sellers of the market are buying and selling the warehouse receipts according to the price of the futures contract in recent months, which is more frequently used by traders.

It is understood that the traditional way of PTA trade mainly consists of forward contracts and purchase follow up. However, when the market fluctuates violently, these two ways will not be flexible in price and increase in transaction times and costs, which are not conducive to the steady operation of enterprises.

"Point price mode is composed of futures price and premium, which can solve the potential problems in the market well." Jinlin futures analyst Wei Lin, for example, in the market downturn, PTA factories and polyester factories in accordance with the point price mode of trading, according to the futures price plus a certain premium discount in the future settlement, while hedging on futures. In this way, the polyester plant can reduce the procurement cost, and the PTA plant can avoid the risk of inventory accumulation. The spot price model fully reflects the function of futures price discovery and risk aversion, and will greatly enhance the market participation of PTA futures.

At present, traders who use futures in the PTA market are mainly traders. They generally focus on the price of PTA futures 1501 contracts. In practice, the listing price is deducted from the futures price by 50 - 150 yuan / ton discount. According to Fan Jinsong, the general spot traders' quotations begin after half past nine, and adjust according to the immediate price of futures and intraday fluctuations.

"It is more obvious that in November 14th, the pre price of ten a.m. was as high as 5800 yuan / ton, and the spot quotation was between 5730 and 5750 yuan / ton. Negotiated price It's near 5700 yuan / ton. With the fall in futures prices, spot trading at 5650 yuan / ton. As futures prices further fall to a low level of 5666 yuan / ton, spot traders offer It was quickly reduced to 5600 yuan / ton, and the lowest transaction price was 5580 yuan / ton on that day. Fan Jin Song It is clear that futures prices play an important role in the pricing process of the spot market.

Judging from recent performance, PTA futures market activity is surpassing rapeseed meal, and is expected to become a star breed. Will this strength be just a flash in the pan?

In the interview, the reporter learned that the market participants generally accepted the PTA futures' current activity. In the majority of the industry, this activity will continue.

"Crude oil prices fell sharply, making the market participants of empty crude oil gradually participate in chemical products futures. As a chemical raw material closely related to crude oil, PTA is a highly marketable variety. At present, PTA upstream raw material PX also enters the relative surplus stage of production capacity, making crude oil to PX - PTA link cost conduction relatively smooth. Therefore, the market funds concerned about crude oil will indirectly participate in PTA futures. Wang Guangqian said.

In addition, there is a certain contradiction between the relative excess of PTA supply and the strong demand for the downstream market. The game of supply and demand makes the industrial chain contradictions and differences increase, thus driving the fluctuation of prices and the active turnover of futures market.

"In the case of more frequent market disputes and fewer contracts in recent months, the high activity of PTA futures is expected to continue." Wu Wenhai predicts.