How much impact will the upcoming listing of glass futures have on the soda ash market?
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What impact will glass futures’ upcoming listing have on the soda ash market? November 12, 2012 08:30 China Petroleum and Chemical Industry Network Securities Regulatory Commission Chairman* Assistant Zhang Yujun said in Guangzhou that glass futures have been approved by the State Council and will be listed and traded on the Zhengzhou Commercial Exchange in the near future. According to the trading rules specified by the Zhengzhou Commodity Office, glass futures trading is 20 tons per lot. According to the current glass price, each lot is about 40,000 yuan. The actual margin is 8-9%, which is equivalent to the glass futures investment threshold of only about 4,000 yuan. As a result, the current situation in which the domestic glass industry can only carry out economic activities through the spot market is about to change, and China will become the first country in the world to list glass futures. * * . As we all know, the glass industry is the largest downstream of soda ash, with demand accounting for nearly 50% of the total demand for soda ash. What impact will this major change in the glass industry have on the soda ash industry? The impact mainly includes two aspects. First, the listing of glass futures will help grasp the market outlook for soda ash. Since a large number of natural persons will engage in speculation and arbitrage transactions in the futures market, glass futures can well reflect the supply and demand relationship in the glass market, thereby providing companies with predictable future glass prices. At the same time, as the largest downstream of soda ash, the price of glass affects the price of soda ash to a certain extent. A person in charge of a major soda ash manufacturer said that there is a certain conductivity between the price of glass and the price of raw material soda ash. Generally speaking, the conduction time takes three months. In other words, if the price of glass futures rises, the market has reason to increase its confidence in the upward trend of soda ash, and vice versa. Secondly, the listing of glass futures will improve the capital utilization rate of glass companies, thus promoting the capital flow of soda ash companies. After the establishment of the glass futures market, with a complete guarantee mechanism, glass production companies can register the early backlog of inventory as standard warehouse receipts in exchange for a considerable proportion of futures trading margins, thus easing the dilemma of freezing their own funds and improving to a certain extent the ability to operate all funds in the entire industry chain from soda ash to glass. To sum up, in the long run, the successful listing of glass futures will promote the healthy and orderly development of the soda ash industry, and it is worth waiting and watching by market participants.
This should be considered a good thing for the soda ash industry.
Hope this is really good information for the soda ash industry!
Hope this is really good information for the soda ash industry!
Hope, winter is about to pass and spring is coming……
Just look at the 18th National Congress. I heard that Hebang has stockpiled 200,000 tons of soda ash this time and is preparing to wait for the end of the 18th National Congress to sell it at a good price. When the price of soda ash was 2,500, they stored 90,000 tons of soda ash and made a net profit of 100 million from the price difference.
Awesome! What a scheming person! But this time,... I hope God will follow people's wishes.
Real estate - glass - soda ash, standard industry influence chain,* * Strictly control real estate for one day. Soda ash may not have an easy life.
However, this time the 18th National Congress proposed that by 2020, the income of urban residents should be doubled and a moderately prosperous society should be built in an all-round way. Economic development should be the basis. Without economic development, everything is empty talk.