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A few days ago, styrene futures completed the "first show" of delivery after listing, and the 2004 styrene futures contract completed a total of 794 deliveries
.
Price volatility drives safe-haven demand
Price volatility drives safe-haven demandStyrene is known as the "devil variety", precisely because its price has the characteristics of frequent fluctuations.
From the market situation since March this year, styrene has shown a "V"-shaped price trend
.
Regarding the recent sharp fluctuations in the price of styrene futures, Jinlianchuang styrene analyst Cui Jing analyzed that, first of all, the early international crude oil diving brought a resonance->
.
Fluctuations in styrene prices have created unprecedented pressure on supply and demand for overall chain products
.
In the opinion of Cui Hailong, manager of Nantong Chemical Light Styrene Department, this year's health incident affected by the superimposed crude oil black swan event is a rare situation in history, but for most upstream and downstream styrene enterprises, "opportunities outweigh challenges
.
Risk of price volatility
.
Good for enterprise risk management
As the seller of the first delivery of styrene futures, Nantong Chemical Lighting has successfully accelerated the return of funds through this delivery, helping the company to operate smoothly
.
"The company originally sold about 80,000 tons of styrene per month
.
"After the styrene futures were listed on the Dalian Commodity Exchange in September last year, the market participation and trading volume increased significantly, which effectively solved the problem of insufficient liquidity in traditional transactions that led to price fluctuations, and provided enterprises with a variety of trading and risk control models.
Really benefited
.
" Cui Hailong said
.
According to public data, in the fourth quarter of 2019, the proportion of styrene futures legal person customer positions accounted for 37%, which was close to the level of mature market structure; in the first three months of this year, the proportion increased to 59%
.
As the delivery warehouse for the styrene delivery business, Qianhong Petrochemical Port Storage and Baian Petrochemical Storage also fully recognized the positive role of styrene delivery in enterprise risk management
.
In the opinion of Zhang Hongjun, general manager of Qianhong Petrochemical Port Reserve, the futures market is a platform for price risk hedging.
When the market price fluctuates greatly, it can control risks and lock in profits for enterprises
.
The physical delivery business also provides a new business model for warehouses
.
It is worth mentioning that the first delivery of styrene adopts a rolling delivery method
.
"Rolling delivery has the characteristics of great flexibility
.
However, in actual business, warehouse operations are more frequent, which increases the workload
.
In this regard, we require futures commissioners to pay attention to the delivery system information in real time, and do a good job of docking with customers to ensure delivery.
Timely and orderly
.
" Zhang Hongjun said
.
