Wankai Key Player in First Bottle-Grade PET Futures Delivery

March 24, 2025

Source: Futures Daily

According to Mr. Chen Canzhong, Vice President of Wankai New Materials, the introduction of futures delivery has provided a more efficient pricing mechanism, optimized inventory management, and enhanced price risk control, creating a solid foundation for the long-term stability and growth of the business. Mr. Chen’s strategic foresight highlights Wankai's commitment to leveraging innovative tools to secure market position.

Strategic Benefits of Futures Delivery

Mr. Chen emphasized that the futures delivery initiative brings three core advantages:

1. Broadened Sales Channels

By integrating futures trading into physical transactions, businesses can respond more effectively to market demands. The transparent pricing mechanism of the futures market ensures more accurate and fair price discovery, reducing uncertainties compared to traditional spot trading.

2. Enhanced Inventory and Capital Efficiency

Futures delivery enables Wankai to dynamically adjust its stock levels based on real-time market conditions, minimizing the risks associated with excess inventory or cash flow pressure. The warehouse receipt management system allows for flexible allocation of physical goods, streamlining overall logistics operations.

3. Stronger Price Risk Management

Engaging in futures trading allows companies to hedge against price fluctuations. Wankai's recent delivery showcased this advantage, with the price spread narrowing significantly from -93 yuan per ton on January 2 to -9 yuan per ton by February 28, demonstrating the futures market's pivotal role in stabilizing prices.

Coordinated Efforts Ensure Smooth Delivery

To ensure a seamless delivery process, Wankai executed a well-coordinated strategy across various departments. The company integrated real-time contract management, warehouse receipts, and logistics data, with close collaboration between finance, warehousing, and logistics teams. Data-driven risk control strategies played a vital role in optimizing delivery timing and maximizing returns.

A New Era for Wankai's Business Strategy

“This successful delivery represents a monumental step for Wankai as we incorporate futures trading into our core business strategy,” said Mr. Chen. "We are committed to further integrating futures trading with our physical sales and risk management systems, aiming to make futures delivery a regular part of our business operations."

Looking ahead, Wankai plans to expand the use of futures trading as a key pillar of its long-term strategy, continuing to leverage this approach to support sustained business growth.

Meanwhile, ZCE has pledged to refine its delivery framework and improve supporting services to better align with the needs of real-economy enterprises, ensuring the sustainable development of the industry.