It is beneficial to optimize the price formation mechanism of PVC, guide the upstream and downstream enterprises of PVC to arrange production and operation reasonably, and help the relevant government departments to grasp the changing trend of the market in time and accurately, and take control measures as soon as possible to ensure the rational allocation of resources and the balance between supply and demand in the market. An important function of the futures market is price discovery. Because of the authenticity, predictability, continuity and authority of futures trading, the futures price formed through futures trading can accurately, comprehensively and timely reflect the real supply and demand relationship in PVC market and the future commodity price change trend. Therefore, the price discovery function of futures is conducive to improving the formation mechanism of PVC market price. Production enterprises can timely and accurately grasp the changing trend of the market, rationally adjust the production scale, avoid a large backlog of inventory caused by blind production, and realize the stable and healthy development of enterprises. The country can also take the information of price, transaction and delivery formed in the futures market as an important basis for formulating its petrochemical industry policy, so as to meet the forward-looking requirements of the policy and allocate resources more reasonably.
It will further improve China's synthetic resin futures variety system. Fuel oil, LLDPE and PTA, as three varieties in the petrochemical industrial chain system, have been successfully listed on the three major exchanges, which will accumulate valuable experience for the listing of other resin futures. As the main variety of five synthetic resins, PVC is an important basic material in modern society, and its output and consumption rank first among the five general resins. Its upstream products are closely related to oil and coal, and its downstream products are related to manufacturing, construction, agriculture, medical equipment and automobiles. Widely used, all kinds of profiles, pipes, wires and cables, agricultural hoses, medical tools, etc. are closely related to people's lives and the overall situation of domestic economic development. Therefore, the listing and trading of PVC futures will help to improve the variety system of synthetic resin futures in China and promote the futures market to better serve the national economy. At the same time, this move will also help China to compete for the pricing power of international petrochemical varieties and the right to speak in international business negotiations.
Conducive to the hedging of related enterprises. From the enterprise level, the role of PVC futures is more significant, and listing PVC futures is conducive to petrochemical-related enterprises to avoid the risk of price fluctuations through hedging. It is helpful to adjust the market supply and demand, slow down the price fluctuation in the spot market and reduce the price risk faced by enterprises. Through the price expectation of the futures market, the imbalance between market supply and demand and abnormal price fluctuation can be effectively suppressed, and the risk of price fluctuation faced by enterprises can be reduced to a certain extent, which is conducive to the formation of a price reference system that instantly reflects market supply and demand and provides good conditions for the development of enterprises. The futures market has concentrated a large number of production, processing and trading enterprises and investors. Open and fair bidding transactions are conducive to the formation of authoritative, fair, transparent and sustainable prices. The futures settlement price is relatively transparent, and the long-term average settlement price is unlikely to be manipulated. Large enterprises pay attention to the development of direct customers, so the forward pricing of direct customers can refer to the monthly and annual average prices of PVC futures.