Pricing power of bulk commodities referred to by d

2022-08-09
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The Bohai commodity exchange officially launched polyethylene and polypropylene spot continuous trading varieties on August 8, and launched the construction of Maoming Petrochemical logistics center project. Insiders said that the continuous spot trading of petrochemical derivatives will drive the development of petrochemical peripheral industries and strengthen the pricing power of China's relevant strategic products

plastic spot contracts build a resource allocation platform

"at present, China is the world's largest importer and second largest consumer of polyethylene, and the world's largest consumer of polypropylene." Zhangchengyu, President of Maoming Plastics Association, introduced that the two varieties listed this time are linear polyethylene resin and polypropylene resin, which are two important varieties of the five general plastics

the total plastic output of Guangdong Province accounts for one quarter of the country, and Maoming's plastic raw materials account for more than 40% of Guangdong Province. As an important petrochemical industry base in South China, Maoming is located at the intersection of Guangdong, Hainan and Guangxi, and is known as the "Southern Oil City". Maoming currently has an annual refining capacity of 13.5 million tons, an annual ethylene production capacity of 1million tons, and an annual polypropylene output of 500000 tons

Fu An, President of Guangdong Plastics Industry Association, said that the listing of these two kinds of plastics has built a spot trade platform for plastic related enterprises across the country and opened up a channel to avoid market risks

"the real-time price generated in real time by national customers participating in centralized bidding transactions ensures the objectivity and accuracy of the price, which will help plastic production enterprises adjust production in advance and optimize resource allocation." Fu An said

industrial upgrading accelerates the formation of petrochemical bases in the Pearl River Delta

Liu Feng, chief expert of the international cooperation center of the national development and Reform Commission, believes that from a broader perspective, as an important petrochemical production base in China, the launch of the oil derivatives spot contract between Maoming and Bohai exchange will drive the development of petrochemical downstream and surrounding industries, reduce the oil delivery valve, and accelerate the process of building a petrochemical logistics base in the Pearl River Delta

it mainly focuses on automation technology, robots, smart homes and innovative enterprises. "Polyethylene and polypropylene will take the main high-quality products in the plastic spot market in Maoming as the pricing benchmark, radiate the plastic spot market in the Pearl River Delta, and provide enterprises with warehousing, financing, delivery, liquidation and other services, which will help petrochemical enterprises shorten the business cycle and expand the business scale." Zhang Chengyu said

according to the relevant person in charge of Maoming municipal government, after the two plastic varieties are listed, Maoming will promote the listing process of other local resource products, and after the listing of this series of varieties, it will bring more than 1.6 billion yuan of new income to Maoming's relevant distribution enterprises

the person in charge said that Maoming will also build a "smart logistics center", which will effectively combine information flow and logistics, improve the efficiency of the logistics industry in the whole Maoming City and even the Pearl River Delta, and accelerate the upgrading of the logistics industry

"spot continuous trading" strengthens the pricing power of strategic products

insiders believe that behind the promotion of industrial upgrading, the deeper significance of spot variety continuous trading is to take the lead in the competition for the pricing power of strategic products

in recent years, China's bulk commodity pricing power has been subject to fluctuations in foreign futures markets such as the Chicago futures exchange and the London Metal Exchange, resulting in many enterprises and even the entire industry unable to take the pulse of the quasi market, products and raw materials soared and plummeted, and price risks were prominent

taking the plastic industry as an example, the traditional spot market lacks a price formation mechanism agreed by all parties, and enterprises lack effective reference for production and sales decisions; In addition, as the rise of plastics will be the main theme, the product industry chain is long, there are many factors affecting the price, and there are large fluctuations. The price contradiction between raw materials and downstream products is relatively prominent. Enterprises are facing huge market operation risks, and the demand for maintaining and avoiding risks is very strong

"compared with the futures market controlled by some capital tycoons, spot continuous trading is a trading form very close to spot trade." Yandongsheng, chairman of Bohai commodity exchange, said that the spot continuous trading adopts centralized matching bidding, forming a real spot commodity price

dongbaoqing, deputy director of the informatization promotion department of the Ministry of industry and information technology, said that the spot continuous trading of Boshang exchange realizes the direct docking of commodity producers, consumers and operators in the exchange, reduces commodity circulation links, reduces trade costs, improves the efficiency of logistics allocation, and has no geographical and temporal restrictions, which is conducive to the industrial upgrading of informatization and electronization of traditional industries, and promotes the formation of a sound rules A reasonable and effective spot commodity trading price system

Liu Feng said that Boshang exchange provides spot producers and traders with an on-site centralized trading platform. Through the price discovery function of the trading platform, China will strengthen its pricing power on relevant strategic products

"we hope to form the spot index of the whole China's petrochemical products as soon as possible on the basis of the spot index of individual products, so as to lay the foundation for China's goal of becoming an international petrochemical product pricing center." Liu Feng said

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