Methanol companies don't catch cold on futures

The methanol futures are tentatively scheduled to be listed on the Zhengzhou Commodity Exchange on October 28, becoming the third new futures product approved this year after lead and coke. According to the announcement of the China Securities Regulatory Commission, the introduction of methanol futures will help optimize the price formation mechanism of methanol and guide the upstream and downstream enterprises of methanol to rationally arrange production and operations. However, on the eve of the launch of methanol futures, the reporter interviewed a number of companies and found that most companies are not optimistic about the role of futures.


The relevant documents show that the trading unit for methanol futures is 50 tons/hand, the minimum price is 1 yuan/ton, the contract price limit for the contract is 4% of the previous day's settlement price, the minimum trading margin is 6% of the contract value, the contract The trading month is from January to December and the delivery unit is 50 tons.


Henan Xinlianxin Fertilizer Co., Ltd. has annual production of 300,000 tons of methanol. Faced with a business that is so convenient in front of its own house, Xinlianxin has made it clear that it does not participate in futures trading.


Zhang Qingcheng, head of Xinlianxin's methanol sales department, frankly stated that the company's board of directors is not allowed to participate in methanol futures because of risk considerations. Although many futures companies have contacted them recently, they do not understand the functions and operating methods of the futures market, so they only wait and see. Methanol Sales Department Li Lin also said: "The previously speculative coke futures are now frozen, there is no volume. Methanol futures will inevitably become the next coke. In addition, methanol is a dangerous goods, strict requirements in storage, transportation Futures trading can't solve these limitations. There is no advantage in this approach."


Li Deyin, manager of Shandong Weishan Tongtai Coking Co., Ltd., said that he would not participate in methanol futures because he did not know about the methanol futures.


According to a survey conducted by Hexun on the website of the Zhengzhou Commodity Exchange, 50% of respondents chose methanol futures to be listed and will not consider trading for the time being. According to industry analysts, in the process of methanol futures trading, delivery issues are difficult to avoid.


Henan Zhongyuan Dahua Group Co., Ltd. has a coal chemical project of 500,000 tons of methanol project. Zhong Li, head of Zhonghua Dahua's sales department, said that the logistics cost for the delivery of methanol futures will be relatively high. Considering the chemical properties of methanol, the factory will deliver May be more suitable. According to Niu Libo, Zhonghua Dahua is currently actively applying for factory delivery.


According to relevant persons in Fujian, 61% of methanol production in China last year came from the northwest, north China, and China, and over 56% of consumption came from East China and South China. Take Fujian Province as an example. Last year, the province produced less than 200,000 tons of methanol, but the consumption was about 800,000 tons. For the central region where the production and sales area is not far away and the transportation is very convenient, it is relatively easy to establish a delivery warehouse. However, for the southeastern region, the delivery has become a problem that must be considered before they participate in the futures market. Since some local spot enterprises in Fujian participate in the futures market mainly for long-term procurement rather than speculation, the demand for establishing methanol delivery warehouses in Fujian is relatively strong.


Li Jianbing, the director of Shandong Shenglong Coking Co., Ltd., told reporters that the current situation of coke futures is mainly due to the lack of understanding of the coke production company's coke futures. Coke is currently a serious excess of products, the buyer needs coke directly to the coke production companies to negotiate on the purchase, on the futures platform to trade more. The transaction under the bank is quick and easy, without any cost. The coke product is already a meager profit. Whoever will go one more link and pay a part of the futures expenses. It is also true that the methanol companies and downstream users do not feel bad about futures.


However, some companies still affirmed the positive role of methanol futures. Ding Hui, chairman of Shandong Yankuang Guotuo Technology Engineering Co., Ltd., believes that one of the major functions of the futures market is to provide producers with hedges and to avoid price risks. Exchanges should encourage companies to do more hedging instead of speculation. transaction.


Yankuang Group is the largest methanol producer in Shandong Province, and its methanol production capacity is distributed in more than 10 chemical subsidiaries. Among them, 200,000 tons of Lunan Fertilizer Plant, 300,000 tons of Guotai Chemical Co., Ltd., 200,000 tons of International Coking Co., Ltd., and 500,000 tons of Guohong Chemical Co., Ltd. are in urgent need of avoiding price risk through the futures market. Therefore, as early as April of this year, Yankuang Group invited Shanghai mid-term futures to train more than 100 representatives of coal chemical companies to take full advantage of the upcoming methanol futures tools.


According to report, many domestic electronic trading markets, such as the Zhangjiagang Chemical Electronic Trading Market, have long-term spot trading of methanol products. They already have many characteristics of methanol futures. The introduction of methanol futures will increase the transparency of methanol prices, allowing companies to better manage price risk and more effectively predict profit and plan production. China's methanol futures are the world's first methanol futures. From the perspective of the international market, it also helps to win the pricing power in the international market.

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