Plastic's traditional trading model no longer shines
Plastic's traditional trading model no longer shines
Mr. Wang, from the sales department of a plastics trading company in zhejiang province, complained to reporters. "Ten years ago plastic trading profits can reach 500 yuan per ton, even thousands of yuan, also can earn 200 yuan per ton five years ago, but now the profit is almost a little feeble, losses are sometimes appear." Especially in the past two years, the profit margin of plastic industry is very low, and the operating environment is not optimistic, Mr. Wang said. In order to retain their high - grade agents, traders have suffered a lot. It is also a last resort to buy low and sell at a low price.
Not only that, but the current market price response speed of traders also raised higher requirements. It is understood that the price fluctuation frequency of the plastics industry has accelerated in the past two years, and the more obvious seasonal trend of the past is now no longer exists, and the market often has a weak season and a poor season.
For this, huang bingqi, general manager of zibo plastic products co., LTD. "The plastic spot market has only changed a few times in a month, but now prices are fluctuating rapidly." Huang bingqi said that the low season of agricultural film sales in the past year will be the same as the price trend of LLDPE. Now the impact of the off-season and high season on prices is becoming more and more vague.
In the past two years, petrochemical enterprises have begun to attach importance to the link between upstream and downstream and continuously improve the direct selling rate of products. Buffer zone "traders as industry greatly abate, plus import profit upside down, the old rely on experience to the management of trade pattern has won't work, traders are more difficult to do." Huang bingqi told the futures daily newspaper.
In fact, these changes in the plastics industry seem to make sense to most people in the industry. "In recent years, the introduction of futures instruments, the rapid expansion of production capacity and the involvement of coal and chemical products have brought about certain changes in the plastics industry." On the one hand, after LLDPE is listed, spot prices are more transparent, and the market speculation has been reduced by continuous increase in price, according to wu heng, a galaxy futures analyst. On the other hand, the expanding capacity in recent years has increased the self-sufficiency of middle and low-end products. The stability of supply and demand balance has been enhanced, and the price fluctuation has narrowed somewhat.
In addition, as an important technological innovation, coal chemical has broken the monopoly pattern of traditional polyolefin production of naphtha. In particular, the cost of coal chemical raw materials is far lower than that of petrochemical industry, and the price of the traditional petrochemical production of polyolefin products has been impacted.
"Although the petrochemical manufacturers still strong pricing power, 'two barrels of oil accounted for the vast majority of plastic raw materials market share, but should not be ignored is that once a large number of production, coal chemical industry in the field of plastic raw materials especially the general material, will bring a lot of product increment, and the cost of coal to olefin advantages also make it has a strong competitive." In the view of zhao honghu, a futures analyst, coal chemical and "two barrels of oil" will have a certain market share in the short term as the market for plastic materials is not yet oversupplied.
"In the medium to long term, with the continuous improvement of coal chemical technology, the trend of product diversification becomes more and more obvious, and the external dependence of low-end goods in China will be greatly reduced. In addition to the traditional domestic trade is affected by the coal chemical products, import trade or also doomed. Wu heng believes that the entry of coal chemical products will speed up the integration of intermediary traders, unable to transform traders or be gradually annexed by large traders, or be eliminated directly by the market.
Mr. Wang, the trade seller, agrees. "At present, the petrochemical industry in China has entered a stage of development featuring structural adjustment, transformation and upgrading and market-oriented reform, which have been difficult to reproduce in the past. The traditional trade pattern of plastic, which relies on monopoly resources and the formation of various asymmetric information, is changing. Mr. Wang admitted that the production of new coal and chemical production capacity could make the plastics industry more competitive, and the competition of the fittest will further intensify.
"The traditional trading model has clearly been unable to adapt to the current market environment, and the future plastic trading enterprises will face more serious challenges." Mr Wong said that capitalising and specialising is clearly the direction of the trade business. In his view, traders should take advantage of the tools of good plastic futures to protect their profits when prices are severely deviated from value. On the other hand, we should keep abreast of changes in products in the market transition period and seize the opportunities offered by coal chemical products
