There are many factors affecting the price of polypropylene, in addition to the long-term price trend with crude oil, propylene and other energy markets are closely related to the short-term price trend by weather, natural disasters and other factors are greatly affected, the price fluctuations during the year is more violent, the frequency of fluctuations is much higher than other resin varieties.
Under the special background of the financial crisis in 2008, the price fluctuation of PP was more than 150%, the price fluctuation of about 47% in 2009, 33% and 29% in 2010 and 2011, respectively, and the price fluctuation of 18% in 2012.
At present, PP region trading is active, but the lack of authoritative price guidance. Polypropylene, polypropylene quotes, polypropylene manufacturers. The industry pointed out that the price formed by the electronic trading market is only a regional price, which lacks representativeness and predictability, and can not provide scientific guidance for the pricing of production enterprises and traders.
【 China is the world's largest PP consumer market 】
China is the world's largest polypropylene consumer market, the apparent consumption of 14.86 million tons in 2012, is expected to 2013-2015 China's PP demand will remain stable growth, the average annual growth rate of about 10%.
Zhuo Chuang information polypropylene analyst Liu Jie said, "The listing of polypropylene futures and the current spot market, spot mid - and long-term market together form a multi-tier market system, enriching the business channels of enterprises." At the same time, the formed polypropylene futures price can more truly and accurately reflect the future supply and demand trend of the market, and establish a scientific and reasonable market-oriented price formation mechanism."
In addition, in an open, freely competitive futures market, traders have equal access to trading opportunities and avoid the price opacity that comes with one-to-one trading in spot trading.
Gao Yang, assistant director and deputy chief engineer of the economic and Technological Development Center of China Petroleum and Chemical Industry Federation, said that PP varieties are easy to standardize, the spot market is large, has a good market foundation, a high degree of marketization, and is suitable for futures trading. After the listing of PP futures, it will further improve the variety system of China's petrochemical futures and play a positive role in the development of China's petrochemical industry.
【 Improve synthetic resin hedging industry chain 】
At the same time, market participants believe that listed PP futures will help improve the enterprise hedging chain and improve the series of synthetic resin varieties. The price fluctuation characteristics of PP are not consistent with the listed futures varieties such as plastic and PVC. According to the statistics of the China Plastics Processing Industry Association, there are 7,300 plastic knitting enterprises above the scale in China, and these enterprises can not fully use the existing varieties for hedging.
Xiong Wei, vice minister of the procurement department of Golden Hair Technology, said that although LLDPE, PVE and other varieties are listed, the varieties consumed by the company are mainly PP, and there are no direct means of hedging at home and abroad, and there are certain deficiencies in the indirect hedging effect through other varieties. The introduction of PP futures will help enterprises effectively lock operating costs and avoid operating risks. In the future, the company will actively study the use of futures markets for hedging risk management.
In addition, PP and LLDPE, PVC upstream raw materials the same, the intermediate trade market structure is similar, the downstream consumer field is close, good futures R & D department manager Zhang Ruming said that compared with a single variety, the complete variety system can form a positive interaction between varieties, build a complete industry hedge system and price system. Many production, trade and consumer manufacturers often operate multiple resin varieties at the same time, and there is an urgent need for a complete and closed synthetic resin hedging industry chain to eliminate industry risks and promote the overall stable development of the industry.
