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Glass companies want to use futures science pricing
Jing Technology (3.74, -0.09, -2.35%) Co., Ltd. told the Futures Daily reporter that due to the current lack of demand in the downstream real estate industry, the glass industry is experiencing a difficult period, and corporate pricing is relatively passive. The industry pricing center is missing. Jin Yonggang, general manager of Jinjing Technology Co., Ltd., said that there is no so-called pricing center in the glass industry. Usually, each company is priced according to internal and external factors, and adopts the daily price model. The main focus is on the quality of the products, and the outside is mainly on the market. In addition, glass prices have a lot to do with cost and downstream demand. “In terms of cost, raw materials and fuels account for 80% of the total cost.†Jiao Yonggang explained that the most important raw materials for glass are silica and soda ash. Among them, soda ash accounts for 20% of the total cost and the price fluctuates greatly, which has a certain impact on pricing. In terms of fuel, most glass companies currently use natural gas, coal and heavy oil. Recently, due to the high price of heavy oil, it has been abandoned by many companies. “Compared to coal, natural gas prices are higher, but they are more environmentally friendly. In addition, natural gas is a state-controlled energy source, and prices are relatively stable. The National Twelfth Five-Year Plan also mentions the phasing out of glass production lines that use coal as fuel.†Jiao Yonggang said that Jinjing Technology has all adopted natural gas as fuel. In addition to raw materials and fuel, the remaining 20% ​​of the cost includes equipment depreciation, logistics and labor costs. It is understood that the glass kiln has a service life of about 8 years, and it has to be shut down for maintenance every 8 years. The shutdown cost of a production line is as high as 50 million yuan. Urgent use of futures to grasp the pricing downstream demand for active glass mainly depends on whether the real estate industry is booming. Wu Zeng, an analyst at COFCO Futures, said that glass companies are 70% dependent on the real estate industry, and the rest are mainly sold to automobiles and home appliances. The hottest real estate industry in 2009 and 2010, glass sales are very good. At present, the real estate industry is greatly affected by macroeconomic regulation and control, the demand for downstream building materials is not prosperous, and the sales situation of glass enterprises is getting worse and worse. As the pricing becomes lower and lower, the inventory backlog is becoming more and more serious. "At present, the inventory of our company has been higher than the inventory capacity of 200,000 weight boxes, reaching 1.4 million weight boxes." Jiao Yonggang said helplessly. "In addition to the flexible use of some business skills, perhaps using financial tools can also help us to regain the pricing initiative." Jiao Yonggang told reporters that in the face of the current industry dilemma, through the gradual and in-depth study of futures knowledge, the company has decided to set up futures Ministry, after the listing of glass futures, related business. At present, the framework of the futures department has been completed and has begun to recruit relevant talents. "Glass manufacturing enterprises participate in hedging mainly to preserve the value of finished products, and mainly sell and preserve the value in futures, and the amount of insurance and the timing of intervention become a key issue." Zhongyuan Futures analyst Shang Jinyu said that enterprises can The aspect determines the amount of hedging: one is determined by the amount of inventory, the second is determined by the sales cycle of the finished product, and the third is determined by the active month contract of the futures trading, assuming that the first quarter of the future is 2013 In January of this year, in the case of a large transaction volume in the month's contract, if the sales are at a low point, the company can fully participate in the hedging of the entire month.