On September 15, 2023, caustic soda futures were officially listed and traded on the Zhengzhou Commodity Exchange. The listing of caustic soda futures provides risk management tools for related companies, which helps companies achieve price discovery and risk transfer through the futures market and lock in costs or benefits in advance., thereby reducing uncertainty and stabilizing production and operations.
The launch of caustic soda futures allows caustic soda market participants to respond more flexibly to market changes and enhance the market competitiveness of enterprises. Based on the expected judgment of weakening spot prices and the objective fact that futures premium spot prices, Jiangsu Haixing registered 60 warehouse receipts for 32% alkali on May 6, equivalent to 1800 dry tons of spot (corresponding to 5625 wet tons of 32% alkali). The company uses the futures price discovery function to increase product sales channels. By managing the risk of fluctuations in finished product inventory prices, the company saves working capital occupation. At the same time, it keeps a close eye on the profit window and adopts spot pre-sales of warehouse receipts to contribute reasonable profits to the company.
May 6 is the first delivery date of SH2405, the first contract of caustic soda futures. Our company closely negotiated and liaised with the warehouse receipt holder, and quickly reached an agreement on the delivery agreement and delivery plan, and designated a special person to dock and pick up the goods. During this period, Jiangsu Haixing Marketing Department actively responded and steadily delivered goods to ensure the smooth completion of spot delivery on May 20. Both parties signed the "Warehouse Receipt Delivery Confirmation", and the delivery of the first batch of futures warehouse receipts was completed.
As the caustic soda futures delivery factory designated by Zhengshang, Jiangsu Haixing is committed to using futures tools in a compliant and efficient manner to promote the company's stable operation and sustained growth. Haixing Factory and Warehouse will adhere to the purpose of futures serving the real economy, continuously improve the delivery process, improve the service quality of the factory and warehouse, and ensure the smooth delivery of caustic soda futures. Jiangsu Haixing will actively promote the release of new productivity and contribute to the high-quality development of the chlor-alkali industry.
Source: Bohui Group