Sino Singapore International Symposium On Polyester Derivatives Held Online

On January 21, the Sino Singapore International Symposium on polyester derivatives, jointly held by the Zhengzhou Mercantile Exchange and the Singapore Stock Exchange, was successfully held online. Relevant persons in charge of the Zheng Shang exchange and the Singapore Stock Exchange attended and addressed the meeting.

China is the world's largest producer and consumer of PTA, and PTA futures is the first chemical product in China's futures market, and it is also a global unique product. In 2020, the average daily trading volume of PTA futures is about 1.33 million, and the average daily position is 2.08 million, with a year-on-year increase of 83%. More than 90% of PTA production enterprises, trading enterprises and more than 80% polyester enterprises in China are using the futures market, and the proportion of legal person customers holding positions reaches 58%. In 2018, PTA futures became the first specific chemical product to introduce foreign traders in China. By the end of 2020, 260 overseas customers from 16 countries and regions have opened accounts. With the development of this product from China to the world, its price has gradually become the wind vane of the world polyester industry. The internationalization of PTA futures has effectively enhanced the overall competitiveness of the polyester industry.

Li Minhong, executive vice president of the Singapore Stock Exchange, said that China is the world's largest PX importer, as well as a major PX producer and consumer. Due to the new production capacity put into production in 2019 and the adverse impact of the new crown pneumonia epidemic on the demand side, the PX price fell to a record low in April 2020. At present, the market uncertainty is high, industrial enterprises and investors tend to manage risks and reduce losses through futures hedging. Both PTA and PX derivatives of SSE are important risk management tools in polyester industry. In 2020, the liquidation volume of PX derivatives of SSE will reach 5.8 million tons, with a year-on-year increase of 62%. The seminar will help market participants in the whole industry chain to be familiar with polyester derivatives market and trading opportunities, understand the services provided by exchanges of both sides, and better utilize derivatives in the two markets to hedge risks.

According to the reporter of futures daily, PTA futures will usher in the 15th anniversary of its listing this year. The market is running smoothly, its functions are playing well, the delivery process is smooth, and the participation of industrial customers is constantly improving, which has been fully recognized by the national ministries and commissions, industry associations and customers. In the next step, Zhengshang exchange will continue to cooperate with Singapore Stock Exchange to explore diversified and open paths, expand the variety system of polyester industry chain, promote the research and development of index products, and create better conditions for global industrial customers and investors to participate.

At the meeting, Singapore Weida energy, Shirui finance, China National fiber network, Nanhua futures and other domestic and foreign institutions made speeches on macro-economy, polyester industry fundamentals, polyester derivatives trading strategy and other topics. Product experts from the exchanges of both sides introduced the situation of Sino Singapore polyester derivatives. SK group of South Korea, shell oil of the United Kingdom, Tullett Prebon energy of Singapore, Ineos group of Switzerland, Borouge chemical of UAE, Nexant global energy consulting company of the United States and other domestic and foreign industrial customers and brokers attended the meeting.