The hottest glass enterprises urgently need to use

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Glass enterprises urgently need to take advantage of futures to grasp the pricing initiative

Table 2 Comparison of performance of different high-strength materials the industry situation is depressed

"from 2010 to now, the price of a box of white glass with a weight of about 5mm has been reduced from 100 yuan to about 60 yuan." The head of Jinjing Technology Co., Ltd. Tengzhou branch told futures that due to the current low demand of the downstream real estate industry, the glass industry is going through a difficult period, and enterprise pricing is relatively passive

lack of industry pricing center

jiaoyonggang, general manager of marketing of Jinjing Technology Co., Ltd., said that there is no so-called pricing center in the glass industry. Usually, various enterprises set prices according to internal and external factors, and adopt the daily price model. Internally, the quality of products is the main factor, while externally, the market situation is the main factor

in addition, glass prices are closely related to costs and downstream demand. "In terms of cost, raw materials and fuels account for 80% of the total cost." Jiao Yonggang explained that the main raw materials of 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 the pricing. In terms of fuel, most glass enterprises currently use natural gas, coal and heavy oil. Recently, due to the high price of heavy oil, it has been abandoned by many enterprises. "Compared with coal, the price of natural gas is higher, but these main workpieces are several large pieces on a tensile testing machine. In addition to environmental protection, and natural gas is a state-controlled energy, the price is relatively stable. According to this, the national 12th Five year plan also mentions the phasing out of glass production lines that use coal as the production fuel." Jiao Yonggang said that Jinjing technology has all used natural gas as fuel

in addition to raw materials and fuels, the remaining 20% of the cost includes equipment depreciation, logistics and labor costs. It is understood that the service life of glass kilns is about 8 years, and they have to be shut down for maintenance every 8 years. The shutdown cost of a production line is as high as 50million yuan

it is urgent to take advantage of futures to take the initiative in pricing.

the downstream demand for glass mainly depends on the prosperity of the real estate industry. Wu Zeng, an analyst at COFCO futures, said that glass enterprises rely on the real estate industry as much as 70%, and the rest of their products are mainly sold to industries such as automobiles and household appliances. In 2009 and 2010, the hottest years in the real estate industry, glass sales were very good. At present, the real estate industry is greatly affected by macro-control. The demand for downstream building materials products is not strong, and the sales situation of glass enterprises is getting worse and worse. With the lower and lower pricing, the inventory backlog is becoming more and more serious. "At present, the inventory of our enterprise has been higher than the inventory capacity of 200000 weight boxes, reaching 1.4 million weight boxes." Jiao Yonggang said helplessly

"in addition to using some business skills flexibly, perhaps using financial instruments can also help us regain our pricing initiative." Jiao Yonggang told that in the face of the current industry difficulties, the company has decided to set up a futures department to carry out relevant business after the listing of glass futures through the gradual in-depth study of the knowledge of selecting 4-column high-intensity light bars as supporting goods. At present, the framework of the futures Department has been set up and relevant talents have been recruited

"glass production enterprises mainly participate in hedging to preserve the value of finished products, and mainly sell hedging in futures, and the hedging volume and the timing of intervention become the key issues." Shangjinyu, an analyst of Zhongyuan futures, said that enterprises can determine the amount of hedging from three aspects: first, it is determined by the inventory, second, it can be determined by the sales cycle of finished products, and third, it can be determined by using the contract of the month in which futures trading is active. Assuming that the leading Quarter Month of futures is January 2013, when there is a large trading volume in the contract of that month, if the sales are at a low ebb, The enterprise can fully participate in hedging with the full output of the month. Zhonghua glass () Department

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