The Dalian Mercantile Exchange announced earlier, the Commission has approved a copy of Chinese glycol futures project application, this means that the variety distance listing is a step closer. goedkoop nike air max 2016 The news triggered a collective reaction downstream manufacturers.
Recently, 8 domestic enterprises including Tongkun shares, polyester Hengyi petrochemical, petitioned the Commission, requested a postponement of glycol futures listed. Colorado State Rams These enterprises in the report from the report pointed out that from the current situation of supply and demand, the current ethylene glycol as the conditions are not ripe for futures varieties.

The production of a large number of coal as raw material for the production of ethylene glycol complex, if mixed with the delivery warehouse to participate in delivery, will affect the quality of downstream products.

What is more, the ethylene glycol futures project application one month after the approval, many suppliers began a large stockpile, causes the product prices, so that the downstream to bear.
Suppliers hoarding ethylene glycol
In this letter the enterprises are Tongkun shares, Hengyi petrochemical, Jiangsu Sheng Hong, Jiangsu, and Zhejiang xinfengming Yingxiang double rabbit, new material and Southeast Zhejiang jiabao. Nike KD Trey 5 III In the “PTA+ ethylene glycol – polyester chips – polyester fiber (that is, polyester, divided into POY/FDY/DTY)” industry chain, these enterprises can be described as prominent. adidas superstar 2 damskie Jiangsu Shenghong holds the domestic DTY industry the right to speak; POY, Tongkun shares, xinfengming ranked first, second. air max 1 femme The above enterprises in the production of polyester products (chips, polyester), ethylene glycol is an indispensable raw material. Nike Italia The Tongkun shares for example, in 2015 the company purchased 1 million 4 thousand and 900 tons of ethylene glycol, the purchase amount of up to 5 billion 210 million yuan.

Over the same period, the domestic production of ethylene glycol is 3 million 916 thousand tons, imports of 8 million 772 thousand tons, the apparent consumption of about 12 million 667 thousand tons.
The huge consumption of ethylene glycol, high dependence on foreign, frequent price fluctuations, this means that the product should be very suitable as futures, for downstream polyester manufacturers hedging, lock production costs, why they must oppose? In the report, the 8 companies give 3 reasons.
They pointed out that this year, the domestic large speculative funds into the futures market, the main varieties of futures speculation turns, insurance function set futures has been seriously weakened.
“Foreign speculation and hedging ratio is 3 to 7, the domestic has inverted, is 7 to 3, then what is the guarantee?” In November 29th, the Secretary of the board of directors of Tongkun shares said Zhou Jun. nike air max thea donna More particularly, these speculative funds also do part of the high degree of dependence on imports has led to the import prices of these products, products of high prices.
8 companies pointed out that if the choice of ethylene glycol futures listed at this time, the situation will be out of control, which has been reflected in the application for approval of the futures of the futures varieties have been approved after a month.

Ethylene glycol futures will be listed after the news, many domestic suppliers began a large stockpile of foreign suppliers, have also raised their own inventory, reduce market supply.