The SFC Approved That Polyester Staple Fiber Futures Will Be Listed On October 12

On September 25, the reporter learned from the regular press conference of the CSRC, China Securities Regulatory Commission has officially approved the listing of staple fiber futures in Zhengzhou Commodity Exchange on October 12 。
Polyester staple fiber (hereinafter referred to as staple fiber) and PTA belong to the polyester industry chain, PTA is an important upstream raw material of staple fiber. Polyester (PET) produced by polymerization of PTA and ethylene glycol (MEG) in melt state is short fiber after spinning, stretching and cutting. It consumes 0.86 tons of PTA and 0.34 tons of ethylene glycol to produce 1 ton of staple fiber. Since the introduction of staple fiber into China in the 1970s, due to its wide use and low price, the market scale of staple fiber has developed rapidly, and it has become an important raw material in textile, clothing, home textile and other industries.
According to different standards, staple fibers can be classified into several categories. According to different raw materials, it can be divided into primary staple fiber and regenerated staple fiber. The primary staple fiber is commonly known as "big chemical fiber", which takes PTA and ethylene glycol as raw materials; the regenerated staple fiber is commonly known as "small chemical fiber", which is mainly made of recycled PET bottle pieces.
According to different uses, staple fibers can be divided into three categories: spinning, filling and nonwoven. Spinning and thread making is the main use of staple fiber, including cotton spinning and wool spinning. The final use is basically in the textile and clothing industry. Filling is mainly in the form of fillers, which is used for the filling of home furnishings and clothing thermal insulation materials, such as bedding, cotton padded clothes, sofa furniture, plush toys, etc. Nonwovens are an extension of staple fiber applications. In recent years, the use of spunlaced nonwovens has increased. For example, spunlaced nonwovens are mainly used in wet wipes and medical fields, while geotextiles, leather based fabrics, linoleum based fabrics are mainly used in engineering fields. According to the reporter, For the staple fiber futures contract to be listed on the Zhengzhou Commodity Exchange, the benchmark delivery product is the primary staple fiber product with the largest proportion in the market at present.
The data show that China is the largest staple fiber producer in the world, and the production capacity and output of staple fiber have increased year by year in recent years. In 2019, the production capacity of staple fiber is 7.585 million tons, and the output is 6.15 million tons. The production capacity is mainly distributed in Jiangsu, Fujian, Zhejiang and other eastern coastal provinces. There are many staple fiber manufacturers and the market competition is fierce. The price is completely determined by the market. At the same time, China is also the world's largest consumer of staple fiber, staple fiber consumption is increasing year by year. It is reported that in 2019, the domestic consumption of primary staple fiber will be 5.45 million tons, with a year-on-year increase of 14.9%, and the consumption and growth rate have reached new highs in recent years. Among them, spinning consumption accounted for 75.2%, and non-woven fabric and filling accounted for 24.8% in total. China's staple fiber consumption enterprises are relatively small, but the number is as many as tens of thousands. China's staple fiber international trade is mainly export-oriented. In 2019, the total export of primary and renewable staple fiber is 978500 tons, and the import is 217800 tons. In recent years, Southeast Asia, with its labor advantages, is actively developing the textile industry. The demand for staple fiber and other textile materials is growing, and it has become an important market for domestic staple fiber export.

According to industry insiders, in recent years, the price of staple fiber fluctuates more frequently due to multiple factors such as raw material cost, supply and demand structure changes, economic operation cycle, export situation and so on. At present, PTA and ethylene glycol futures have been listed in China. Polyester industry enterprises can use PTA futures and options to avoid the risk of raw material price fluctuations. However, due to the short fiber futures have not yet been listed, the sales end lacks effective forward price guidance and hedging tools, and the call for listing staple fiber futures is increasingly strong.
Market participants said that there are many spinning enterprises in China, and most of them are small and scattered, and there are not enough tools to deal with the price fluctuation of staple fiber. The staple fiber market is prone to centralized procurement when the price fluctuates greatly. Sometimes the production and sales rate reaches 200%, 300% or even higher. However, when the price is stable, the production and sales rate is low, only 45%, which is not conducive to the stable production and operation of industrial enterprises. Listed staple fiber futures can provide forward price guidance and risk management tools, guide industrial enterprises to purchase and sell rationally, and facilitate industrial enterprises to hedge and avoid risks.
The listing of staple fiber futures is conducive to improving the futures variety system of polyester industry chain. Staple fiber manufacturers can avoid the price risk of raw materials and products, lock in processing profits, and meet the risk management needs of upstream and downstream enterprises. At the same time, as the raw material of textile industry, staple fiber can form linkage with cotton and cotton yarn futures which have been listed so as to further enrich the risk management of textile industry There are. Therefore, the listed staple fiber futures can play the clustering effect of varieties, improve the service level of the futures market for polyester industry and textile industry, and further enhance the global competitiveness of domestic polyester staple fiber enterprises.