Energy and chemical derivatives have "multiple blooms" and the effect of synergistic development is obvious

Original title: Energy and chemical derivatives have "multiple blooms", and the effect of synergistic development on and off the market is obvious

Original source: Securities Daily

Reporter: Wang Ning

Since the COVID-19 pandemic swept the world last year, it has disrupted the global economic operation and circulation system, especially in the chemical market, where logistics, human flow, supply chains and industrial chains have all been hit hard.

At the "2021 China Chemical Industry (Derivatives) Conference" held by DCE on April 7, a number of participating experts stated that the global energy and chemical industry chain was affected by multiple factors such as the outbreak of the new crown pneumonia epidemic and the intensification of international trade frictions.

Increased risk management needs

Expansion and efficiency enhancement of the on-site market

"The global outbreak of new crown pneumonia is the biggest black swan event.

“Affected by factors such as the epidemic situation and the sharp fluctuations in crude oil, the market’s demand for hedging has increased, and the plastics sector has increased the most, driving the growth of the energy and chemical market of DCE last year.

During this period, DCE's energy and chemical futures market functioned effectively, and the correlation of futures prices continued to increase.

Liu Yuguang, deputy director of the OTC Market Department of DCE, introduced to reporters the progress of the construction of the OTC chemical product circle and the next deployment plan.

In the process of assisting entity enterprises to promote the in-depth integration of the spot market, DCE also established a platform with banks and entity enterprises to provide services for non-standard warehouse receipt financing with the help of related blockchain technology.

Derivatives feature prominent

Coordinated development on and off the field

DCE is actively planning how to develop the chemical derivatives market on-site and off-site in the future, and to promote the coordinated development on-site and off-site.

DCE will also actively promote the opening up of energy and chemical products such as ethylene glycol, LLDPE, PVC, PP, etc.

Relevant persons of DCE said that while building the off-site market, it will continue to “make more efforts” in the construction of the chemical product ecosystem, including continuing to recruit members, expand the scope of members, conduct training and exchange activities, and cooperate with other companies.