Improve the functions of the futures market to ensure the development of industrial enterprises

International Rubber Research Association (IRSG) Secretary-General Salvatore Pinizzotto said that China, as an important rubber producer and consumer, occupies a pivotal position in the global market. Especially since the listing of INE20 rubber futures in 2019, China has established a mature futures market mechanism, providing more price references and hedging tools for various entities in the global rubber industry chain.

From the perspective of the natural rubber futures derivatives market at home and abroad, according to the person in charge of the previous energy, INE20 rubber futures has been operating smoothly since its listing on August 12, 2019, and the market functions have gradually played out. According to FIA statistics for the first half of 2021, the trading volume of Energy No. 20 rubber futures in the previous period ranked 36th in the global agricultural derivative contracts, an increase from 2020. According to data, as of the end of July 2021, INE20 rubber futures had a total of 9,792,500 lots, with a cumulative transaction value of 1.04 trillion yuan; in 2020, INE20 rubber futures had traded 4,427,900 lots, equivalent to about 44.279 million tons of spot. From the perspective of price linkage, INE20 rubber futures are closely linked with domestic and foreign futures and spot prices, and they have begun to have an influence in the international market. At present, the price of INE20 rubber futures has been traded by many domestic and foreign industry chain leaders in cross-border trade. As the pricing benchmark. She said that in the next step, Energy in the previous period will further optimize the rules of the No. 20 rubber futures contract and introduce the TAS trading mechanism to provide market participants with more flexible and effective risk management tools.

The relevant person in charge of the SGX said that the SICOM natural rubber futures on the SGX have been listed for a long time, and their prices reflect the fluctuations in the spot price of natural rubber in the main producing areas of Southeast Asia, and are one of the important references for the global natural rubber spot trade pricing. From the perspective of contract characteristics, the SGX SICOM rubber futures contract is priced in US dollars, and the most active standard rubber (TSR) in the spot trade is selected as the product target, and the trading time covers the active time period of rubber trading. At the same time, it provides a variety of trading modes such as futures, options, and over-the-counter OTC forward spot contracts. It provides a wide range of services for rubber production, processing, trading, tire manufacturers, fund companies and banks, etc., providing a wealth of market participants around the world. Flexible hedging and arbitrage opportunities. From the perspective of market operation, the volume of SICOM natural rubber futures contracts has increased year by year. In 2020, 1,856,270 SICOM futures contracts were traded, involving 9.28 million metric tons of spot.

The rubber market is weak and strong, and different varieties are clearly differentiated

From the point of view of the global rubber spot market this year, in the first half of this year, the evolution of the natural rubber market is relatively complicated. Due to the continuous disturbance of the Southeast Asian epidemic in the early stage, although it did not have a substantial impact on rubber tapping, there are marginal favorable factors, mainly reflected in the limited operation of processing plants, the shortage of standard rubber, and the lack of foreign labor affects rubber tapping to a certain extent, as well as transportation restrictions. , Port cargo backlog problem. As the epidemic suppressed spot output, raw materials and futures prices rebounded rapidly. She believes that with the end of the rainy season in the later period, the stimulus of high prices to output may become prominent. However, the impact of the epidemic needs to be dynamically measured. Due to the different fundamentals of supply and demand of glue and dry glue, the performance of the two is also quite different.

From a short-term perspective, she believes that the market more reflects the impact of the epidemic's suppression of supply, and the price of rubber has shifted upward due to the long-short supply divergence. At the same time, in the course of the market's upward trend, the repair path of the high premium of futures has changed, showing an upward contraction of the basis. From the perspective of the structure of dark and light colored glues, under the continuous high-priced purchases of overseas factories this year, the export share has shifted from China to Europe and the United States. The accumulation of colored gels is expected to decline, and the structure of dark and light colors is more certain than unilateral.