The "Polyester Family" In The Futures Market Adds New Members Bottle Options

Bottle chip futures have been listed for less than half a year, and new members have been added to the "polyester family" of futures market. Bottle chip options will be listed on the Zheng Merchants Exchange on December 27. Bottle slice is mainly used in the production of bottle packaging containers, and is widely used in the packaging of beverages, edible oils and other daily chemical products. China is the world's largest producer, consumer and exporter of polyester bottle flakes. Efficient price risk management of bottle flakes is of great significance to the stable operation of enterprises and the high-quality development of the industry.

As an efficient hedging tool, bottle piece futures has attracted many industrial customers since its listing, which can clearly feel the increase of participation in the industrial chain. Upstream and downstream enterprises use futures tools to lock in product profits and stabilize production and operation.

Compared with futures, options can better meet the needs of enterprises in some business scenarios. Taking the bottle and chip trade link as an example, due to its obvious seasonal characteristics, midstream enterprises are used to stocking up a large number of goods before the year, with certain capital pressure and price fluctuation risks. In this case, the trader can choose to buy the put option and spend a fixed premium to "insure" the inventory. At the same time, you can choose to sell dummy call options. If the market goes up, on the premise of ensuring the profit below the exercise price, sell the inventory and offset the bullish exercise; If the market falls, the premium collected can alleviate the capital pressure caused by inventory occupation.

The purchaser of bottle slice is mainly a beverage factory, which can use bottle slice option for risk hedging. For example, Beverage Factory A plans to purchase a batch of water bottle grade polyester chips for production next year in January 2025, which is now December 2024. In order to prevent the price of bottle chips from rising significantly when purchasing in January 2025, bottle chip enterprises can buy the equal value or virtual value call options that expire in January 2025 corresponding to the purchase quantity at the current price of bottle chips. In January 2025, if the price of the bottle piece does not rise, the enterprise will only lose a small part of the premium of the call option; If the price of bottle chips rises sharply, the profit of the enterprise on options can be used to pay for some of the spot payment of bottle chips after the price rises. As the option adopts the margin trading system, the enterprise can hedge the risk of the potential sharp rise of the bottle price with a small cost.

Compared with the price discovery and risk management functions of futures, the essence of options is "price insurance". The corresponding options trading has been carried out for the varieties of futures trading in the international mature market. The PTA, PX0>paraxylene and other varieties of the domestic polyester industry chain have also carried out over-the-counter options trading.

Bottle piece futures have been running smoothly since its listing. Industrial chain enterprises have accumulated some experience in the use of futures tools, and the demand for option tools has increased. From the communication with relevant upstream and downstream factories and traders, the industrial chain enterprises are looking forward to more refined risk management through option tools.

Commodity options can provide richer trading strategies and complement futures instruments. For manufacturing enterprises, compared with the original hedging model, options have wider application scenarios and higher capital utilization. Industrial chain customers can formulate options trading strategies that fit the market according to the rise and fall of the market to stabilize their operations. In addition, industrial enterprises can use options to "insure" and hedge market risks at a lower cost. Upstream enterprises can use put options to collect royalties, ease capital pressure and increase profits.

On the one hand, the listing of bottle options will provide more choices of risk management tools for industrial chain enterprises, enabling enterprises to flexibly use options or futures for risk hedging according to market conditions and their own needs. On the other hand, it can improve the efficiency of enterprise capital use. After the listing of bottle options, enterprises can take the physical delivery of futures as an effective supplement to the existing inventory management system, flexibly complete raw material procurement or product sales according to their own needs, and improve the efficiency of capital use. In addition, the regulations on the month of bottle option contracts are conducive to concentrating market liquidity and improving market operation efficiency.

New tools have many advantages, which provide new opportunities for industrial enterprises as well as challenges. Enterprises should have sufficient understanding of the profit points and risk points of the strategy. For call options, the risk can be controlled within the scope of premium. Put options have the same uncertainty as futures. Once the adverse change in price exceeds the scope of royalty, the seller begins to lose money. Therefore, a clear stop loss line should be established for put options, or the production enterprise should have corresponding goods. In addition, due to the large number of option contracts, there are some differences in the liquidity of different contract markets. Participants should pay attention to the liquidity and maturity of contracts in a timely manner.

Before participating in bottle options, industrial customers, institutions and other entities should be familiar with the bottle contract rules and fully understand their basic concepts, trading rules and risk characteristics. At the same time, we need to have a deep understanding of the market situation of bottle tablets. We should not only pay attention to the supply, demand and inventory of bottle tablets, but also pay attention to the price fluctuations of PTA, ethylene glycol and other raw materials. In addition, since the bottle pieces have not been actually delivered yet, as the delivery month approaches, the details of actual delivery may also be an important factor affecting the price fluctuation of bottle pieces, and it can be considered to increase exchanges with factories, traders and other market entities before and after delivery.

When industrial customers and institutions participate in bottle options for the first time, they should fully understand the contract rules, design appropriate options strategies in combination with the enterprise's own fund management and risk control mechanism, pay attention to the liquidity of options contracts, and select appropriate options contracts.