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How will glass futures affect soda ash market

wallpapers News 2020-12-08

Zhang Yujun, assistant chairman of the China Securities Regulatory Commission, said in Guangzhou that glass futures had been approved by the State Council would be listed on the Zhengzhou stock exchange in the near future.

According to the trading rules specified by Zhengzhou commodity office, each h of glass futures trading is 20 tons.

According to the current glass price estimation, each h is about 40000 yuan, the actual margin is 8-9%, which is equivalent to that the investment threshold of glass futures is only about 4000 yuan.

As a result, the current situation that the domestic glass industry can only carry out economic activities through the spot market is about to change, China will become the first country in the world to list glass futures.

As we all know, the dem for soda ash in the downstream industry accounts for 50% of the total dem.

What kind of impact will the major transformation of glass industry have on soda ash industry? The impact mainly includes two aspects.

First, glass futures listing will help to grasp the future market of soda ash.

As there will be a large number of natural persons in the futures market to speculate arbitrage, glass futures can well reflect the supply dem relationship of glass market, thus providing enterprises with the expected future glass price.

At the same time, as the largest downstream of soda ash, the price of glass affects the price of soda ash to a certain extent.

A person in charge of a major soda ash manufacturer said that the price of glass is conductive to the price of raw material soda ash.

Generally speaking, the conduction time takes three months.

In other words, if the price of glass futures rises, the market has reason to enhance confidence in the future market of soda ash, vice versa.

Second, the glass futures market will improve the utilization rate of capital of glass enterprises, so as to promote the capital flow of soda ash enterprises.

After the establishment of glass futures market, under the perfect safeguard mechanism, glass production enterprises can register the overstocked inventory in the early stage as stard warehouse receipts, so as to exchange a large proportion of futures trading margin, so as to alleviate the plight of freezing their own funds, to some extent improve the operation ability of all funds in the whole industry chain from soda ash to glass.

To sum up, in the long run, the successful listing of glass futures will promote the healthy orderly development of soda ash industry to a certain extent, which is worth watching waiting for market participants.


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TRUNNANO (aka. Luoyang Tongrun Nano Technology Co. Ltd.) is a trusted global chemical material supplier & manufacturer with over 12 years' experience in providing super high-quality chemicals and Nanomaterials. The nitride powder produced by our company has high purity, fine particle size and impurity content. Please contact us if necessary.
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