Industrial silicon futures are listed and traded on the Guangzhou Stock Exchange

On December 22, industrial silicon futures were officially listed and traded on the Guangzhou Futures Exchange (hereinafter referred to as Guangzhou Futures Institute), becoming the first listed new energy metal futures variety in China
.

On the first day of trading, 5 contracts opened high and closed low collectively
.
As of the close, the SI2308 contract was quoted at 18,310 yuan (ton price, the same below), down slightly by 1.
03% from the listed benchmark price; The SI2311 contract fell 2.
7%; The SI2310 contract fell 1.
89%; The SI2309 contract fell 1.
54%; The SI2312 contract fell 0.
78%.

It is understood that the benchmark price of the first batch of listed industrial silicon futures contracts on the Guangzhou Institute is 18,500 yuan
.
On the first day of listing, the trading margin level of industrial silicon futures contracts was 10% of the contract value, and the price limit range was ±16%
of the listed benchmark price.

Industrial silicon is a green and low-carbon variety used in photovoltaic, semiconductor, aerospace, construction, automotive, ship and other fields
.
China is the world's largest producer, consumer and exporter
of industrial silicon.
In 2021, China's industrial silicon production capacity will be 4.
99 million tons and output will be 3.
21 million tons, accounting for 79% and 78% of the global industrial silicon production capacity and output, respectively; Industrial silicon consumption was 3.
132 million tons (including exports), of which domestic consumption was 2.
358 million tons, accounting for 56%
of the total global consumption.

However, China has lacked the corresponding right
to speak in the pricing of industrial silicon exports.
In the current international trade of industrial silicon, the price index published by the British Metal Bulletin and the British Commodity Institute is mainly used as the pricing basis
.

From the perspective of industrial fundamentals, in recent years, domestic industrial silicon prices have shown a sharp fluctuation trend
.
According to statistics, in 2017~2021, the annualized volatility of industrial silicon spot market prices was 10.
31%, 5.
66%, 5.
5%, 7.
7% and 49.
64%,
respectively.
According to Baichuan Yingfu data, since 2020, the lowest reference price of industrial silicon has been around 10,000 yuan, and the highest is more than
60,000 yuan.

In the face of price fluctuations, upstream and downstream enterprises in the silicon industry chain are increasingly demanding listed industrial silicon futures, pricing and managing risks using futures tools
.
At present, industrial silicon spot trade is mainly based on the long-term model, and the listing of futures varieties will help improve the trade pricing model and form a "Chinese" price
that reflects the international trade of industrial silicon in China.

In addition, industrial silicon options contracts have been available for trading since December 23, and the trading hours coincide with
the trading hours of industrial silicon futures contracts.
The first listed contracts were industrial silicon options contracts based on the SI2308, SI2309, SI2310, SI2311 and SI2312 futures contracts
.

Zhu Lihong, general manager of Guangzhou Futures Institute, said that the listing of industrial silicon futures and options will help enhance the resilience of the relevant industrial chain, form an international price influence that matches the volume of China's photovoltaic industry, and also provide new strong support
for the futures market to help build a modern industrial system.
Industrial silicon futures and options need a gradual process to mature, in the next step, Guangzhi Institute will be rigorous and meticulous in the implementation of various measures, continue to strengthen market cultivation, and maintain the normal trading order
of the market.