On June 21, crude oil options were officially listed for trading at the Shanghai International Energy Trading Center (hereinafter referred to as Shanghai Futures Energy), a subsidiary of the Shanghai Futures Exchange.
On the eve of the listing, the reporter followed the research team of the Shanghai Stock Exchange and the Shanghai Stock Exchange Energy Organization to Zibo City, Shandong Province, and visited Shandong Jingbo Petrochemical Co., Ltd. (hereinafter referred to as Jingbo Petrochemical) and other petrochemical companies Enterprises, understand the expectations of front-line enterprises for crude oil options.
Achieve industrial profit chain value management through combination of futures and cash
In Jingbo At the “Partner’s House” near the petrochemical plant, the reporter saw many truck drivers taking a nap or drinking tea on the benches. On the large screen directly in front, the transportation time, waiting time, location, quantity and other information of the goods are clear at a glance. In the past, the situation of truck drivers waiting under the scorching sun no longer existed.
As a large private enterprise with petrochemical industry as its main business and integrating petroleum refining and subsequent deep processing, Jingbo Petrochemical is well aware of the importance of the derivatives market. In November 2020, the company was awarded the title of “Industrial Training Base” by the Shanghai Futures Exchange and Shanghai Futures Energy, and is also the asphalt futures delivery factory of the Shanghai Futures Exchange.
According to reports, with the help of the Shanghai Futures Exchange platform, Jingbo Petrochemical went from initial speculation to the introduction of hedging and position management, and then to the establishment of a futures company to integrate industry and finance, and finally realized Industrial profit chain value management.
Wang Yaowei, general manager of Jingbo Petrochemical, said: “Today, futures operations have become an indispensable part of Jingbo Petrochemical’s daily operations. On the one hand, the company uses the hedging function to Prevent the risk of severe market price fluctuations, cut profits from peaks and fill valleys, make profits sustainable, and ensure the company’s normal production and operation. On the other hand, the company uses the price discovery function of futures as the basis for sales pricing and purchase negotiation, achieving Prices are more reasonable.
Help form a closed loop of risk management
Last Issue Energy The crude oil futures listed in 2018 are the first domestic commodity futures open to the outside world. Since its listing, it has become a safe haven for many chemical companies.
Many industry insiders said that the listing of crude oil futures Afterwards, it not only withstood the test of extreme market conditions and maintained stable overall operation, but also played an active role in serving the value preservation and hedging needs of real enterprises. The launch of crude oil options will further promote the steady development of the petrochemical industry chain and build a closed-loop risk management loop for the petrochemical industry.” Adding bricks and mortar.”
Data show that the scale of Shanghai crude oil futures market has grown by leaps and bounds in 2020, with a transaction volume of 11.96 trillion yuan throughout the year, and trading volume and open interest reaching new highs.
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“As domestic oil-related companies’ understanding of risk management continues to deepen, and the crude oil price trend is complex, just using crude oil futures to manage risks can no longer meet the risk management needs of oil-related companies. The market is increasingly clamoring for the launch of crude oil options. “The relevant person in charge of energy in the last issue said, “Promoting the listing of crude oil options will help improve the efficiency of price discovery, form a more reasonable pricing mechanism, and provide flexible and effective risk management tools for upstream and downstream enterprises in the industry chain. ”
Yang Chuanbo, general manager of Yongan Petroleum, said in an interview with reporters that the listing of crude oil options provides an alternative hedging option for upstream and downstream enterprises and intermediary service providers. Tool. Judging from the practical experience of other varieties in the past, the listing of crude oil options can effectively improve price transparency and reduce some intermediate costs for industrial enterprises to participate in hedging.
The industry calls for a more complete petrochemical derivatives instrument system
In recent years, the listing of domestic petrochemical derivatives has entered the “fast lane” of development. . Since 2018, crude oil, ethylene glycol, styrene and other futures have been launched one after another, enriching the petrochemical derivatives tool system. According to the last energy data, petrochemical futures have accounted for one-fifth of the total market turnover.
“The more financial derivatives instruments there are, the more conducive it is for market parties to effectively participate in price hedging and the more conducive it is to reducing costs. “Yang Chuanbo said, “China is actively building a commodity investment bank, which is inseparable from the efforts of all parties in the market. It is hoped that in the future, more derivative instruments will be born in the on-site market, involving refined oil, naphtha, natural gas, shipping, carbon emissions, etc., the product system will be richer, and the market liquidity will become higher and higher. “
Luan Bo, chairman of Jingbo Petrochemical, said that in recent years, the exchange has launched more and more petrochemical futures varieties, although it still cannot fully cover all products in the industry chain. structure, but a large proportion of one-to-one correspondence has been achieved.
“There are indeed some problems now, such as the lack of refined oil futures, which makes midstream companies in hedging The front and rear operation is not smooth enough. But it can also be done by studying the company’s profit logic, profit structure and the structural relationship between raw materials and products, forming correlation coefficients for hedging, and alleviating the problem of imbalanced tools at both ends. “Luan Bo said.
“In some industries, China’s futures market has achieved a full industrial chain layout, such as the black industry chain, from upstream coke and iron ore to downstream Rebar, wire rod, stainless steel, etc., China’s futures market has achieved a full range of product distribution, and relevant companies can easily hedge raw materials and products and lock in processing profits. “An executive of a large futures company in Shanghai said, “The development of the petrochemical industry is also the same. With the increasing number of related products,Rich, a closed loop of risk management will be formed, and a high-efficiency, low-cost hedging ‘toolbox’ will be provided for the entire industry chain. ”</p
