The contents of this issue are a little longer, and I will give you a brief introduction to three types of futures in chemical industry:
PE, which is polyethylene, is listed as linear low-density polyethylene (LLDPE) in standard futures product list, and Wenhua's software is explicitly labeled as "plastic".
PP, i.e. polypropylene, draw grade polypropylene is listed as standard futures product.
PVC, that is, polyvinyl chloride, is most often used in drainage pipes, plastic doors and windows.
The last forms of these three varieties are commonly referred to as "plastics" (in fact, there are many more than these three types of plastics), which is why futures traders often refer to these three listed varieties together as "three plastic brothers". Dalian Commodity Exchange is listed, and at same time, there are corresponding option options.
1. Upstream and downstream stages of production chain
Because these three substances are polymers, it can be seen that respective raw materials are mainly ethylene and propylene, and these two raw materials are originally derived from three main energy sources: oil, natural gas and coal.
Technologies for production of ethylene and propylene are relatively diverse. As far as is currently accepted in my country, main source of ethylene is oil, main source of propylene is coal, and then natural gas (methanol is an intermediate).
The last part of future grade linear low density polyethylene (LLDPE) is mainly packaging film and agricultural film. In addition to films, after all polyethylene, injection molding products, wires and cables, and hollow products are also included.
The last part of polypropylene for drawing various grades of future is mainly plastics weaving industry, such as container bags, woven bags, mesh bags, silk ropes, etc. All downstream PP includes pipes (mainly water pipes), medical supplies such as masks, appliance cases, and household plastics.
PVC after main wires and cables, pipe profiles, artificial leather, foam products, etc. Due to increase in use of artificial leather in automotive industry, compared with first two varieties, prospects for use of PVC are relatively better.
2. Basic information about varieties
The basic data of three varieties are approximately same. Let's take one as an example: current main contract for PVC is V2209, and price is about 8630 yuan. You pay at least 43150*16% (11% for an exchange, 5% for a futures company) = 6904 yuan as margin. Each time price fluctuates by 1 pip, you earn or lose 5 yuan per hand.
Third, think about PE/PP/PVC futures that need attention (for reference only)
1. The production capacity of conventional materials of polyethylene and polypropylene has gone from insufficient to over-capacity in my country, especially polypropylene.
2. The basics of three plastic brothers are difficult to analyze and understand for non-professionals. It is recommended to start with technical aspects.
3. Under normal circumstances, price fluctuations of polypropylene and MA methanol futures have following corresponding relationship: 1PP=3MA±1000 yuan.
4. The price ratio between PP and PVC in my country and thermal coal is relatively closer. PP is due to propylene factor, while PVC is produced due to basic calcium carbide method, which requires a lot of electricity. and raw coke.
5. The downstream of these three varieties can partially replace each other to a certain extent, so their prices are related to each other. Real pricing still comes from their respective supply and demand, and there is no obvious fixed who is higher and who is lower.
The price of PVC used to be lower than that of PE and PP all year round. Last year, due to power outages, charcoal prices soared, and consumer side was not bad, drove this grade to a pretty penny. new high.
My name is Lelai and I work with futures. I will tell you about futures and talk about investing in them.