Soda Ash Futures Traded in ZCE
Click:295    DateTime:Dec.26,2019


On December 6, soda ash futures were traded in Zhengzhou Commodity Exchange (ZCE). “This integrates traditional chemical industry with modern financial market,” said Li Bin, vice chairman of CPCIF (China Petroleum and Chemical Industry Federation). 

   China’s soda ash industry is in transition. Impacted by supply, demand and environmental policies, prices of soda ash are fluctuating sharply, with the amplitude exceeding 30% in 2018. This brings risks to both soda ash firms and downstream industries. Hence, soda ash futures are needed, and enterprises have strong willingness to use this tool to reduce potential risks. 

   Price guidance mechanism of soda ash futures can help firms make strategic plans more scientifically. Further, upstream and downstream enterprises can use futures to lock sales profit or purchase cost in advance, and stabilize their profitability.