The so-called point price refers to the way in which the futures price of a certain month is used as the basis for pricing, and the futures price is added or subtracted from the premiums agreed by both parties to determine the price of both parties to buy and sell spot goods. In the polyolefin industry, most domestic producers, traders and some foreign suppliers are pricing themselves. Some PP, PE foreign suppliers and some import traders adopt the method of inbound settlement. Some insiders said that at present, the domestic PP and PE plastics market has a strong voice in pricing, so most domestic producers choose independent pricing. In addition, due to the active trading in the spot market, the price changes rapidly, and most domestic sellers choose to quote daily. In the US dollar market, the ship-to-ports cycle is longer, the foreign quotation frequency is lower, and the market price fluctuates frequently, and the importers, especially the buyers of some Middle Eastern PE sources, have a large purchase volume, and the buyer bears a greater risk. The bargaining power is stronger, so there are more ways to settle in Hong Kong.
However, with the continuous release of new capacity at home and abroad, competition among suppliers has increased. At the same time, in the context of slowing economic growth, the growth rate of downstream demand is far less than the rate of capacity expansion. The influence of sellers on pricing has decreased. In recent years, the pricing model of the polyolefin market has become more diversified.
With the development of the Internet, e-commerce is in full swing. At present, there are many enterprises in the domestic “online†mode of polyolefins, which can be roughly divided into three categories: the first one is the trading platform developed by the company itself, such as Shenhua Coal Trading Network and Midou Technology. The second is government approval or investment in petrochemical trading centers, such as the Straits Petrochemicals Trading Center and the Sea Trading Exchange Western Trading Center.
At present, the spot price trading model in the polyolefin market is mostly carried out between traders and large downstream factories. In the process of price-pointing, traders establish short positions in the futures market, and at the same time determine the reasonable premiums and discounts to the downstream factories in combination with the spot market prices. The downstream factories accept the premiums and offer them through the futures market during the price period. Determine the settlement price, the trader hands the spot on the downstream factory and close the futures position. Compared with pure futures hedging, the seller of the point price model can determine the premium and discount, and the buyer can also choose the time point of the price, which can effectively reduce the risk of basis fluctuation.
Point-price trading can help companies reduce the risk of market price fluctuations, and save the process of mutual inquiry and pricing between buyers and sellers to improve efficiency. However, there are still some obstacles to the point-of-price operating model, such as the risk of basis and the possibility of a downstream factory or seller destroying the order.
KN95 Face Mask,Disposable KN95 Masks,95% Filtration Mask,KN95 Civil Mask
Ningbo Jiashang textile co., LTD., , https://www.cn-jshang.com