On December 3,the glass futures was formally listed on Zhengzhou Commodity Exchange.As the world's first glass futures,it has a profound and wide impact on micro-sized glass company and China glass industry and even the whole futures market.
Firstly,it provides transparent base prices for the whole industry.Our glass industry has a lower threshold than other countries and the different region has an uneven glass technology level.The glass demand is mainly focused on the real estate industry and auto industry which features of strong periodicity and high production concentration.The industry structure decides that the industry has no right to fix the price on the spot transaction which makes it losses the initiative.The glass price is totally depended on the external market demand which is largely limited the development of this industry.After its listing,the price depends on several factors rather than the demand which forms a pricing standard to lead the price fixing.
Secondly,the glass futures provides a good way to avoid management risk and financial risk for the owners of the glass factory.Float glass production lines has a high cost if the furnace stops working which is unbearable for the owners.And it makes the rigidity of the glass production cycle in short terms.The upstream capacity and downstream demand periodicity both effect on the price of glass and the managers.After glass futures listing,it greatly improves the business stability and the stock management ability.According to the market expected price,the managers can more properly arrange the future capacity.Meanwhile,it can release the capital pressure and avoid the financial risk.
For the domestic industry,the glass futures drives the whole industry development in order.
