On January 8,2024,Zhengzhou Commodity Exchange issued a notice on the revision of the business rules for flat glass futures,changing the national standard number cited in the business rules for glass futures from the original national standard GB 11614-2009 to the new national standard GB 11614-2022,and changing the delivery product name from the original national standard first-class product to the new national standard ordinary level,while keeping other requirements unchanged.This revision will come into effect from the glass futures contract FG2502,which will be listed in February this year.
The reporter learned that in the early stage,the new national standard for glass,the National Standard for Flat Glass of the People's Republic of China(GB 11614-2022),replaced the original national standard(GB 11614-2009)and was officially implemented.The new national standard mainly simplifies the glass quality classification from the original national standard of qualified products,first-class products,and excellent products to two levels:ordinary level and high-quality processing level.At the same time,some appearance quality indicators have been adjusted.Among them,the indicators for ordinary level products are slightly relaxed compared to the original national standard first-class products,while the indicators for high-quality processing level products are stricter than the original national standard first-class products.
To match the updated content of the new national standard and adapt to the new market development situation,Zhengzhou Institute of Commerce conducted research on glass production,trade,consumer enterprises,as well as quality inspection institutions,futures companies and other market groups.Interviewees generally stated that the quality of ordinary and first-class products is basically the same,and there is no price difference in spot goods.At the same time,there has been no significant change in the mainstream demand for flat glass in the market,and it remains consistent with the thickness,specifications,etc.corresponding to glass futures delivery products.
According to the relevant person in charge of Zhengzhou Commodity Exchange,the revision of the glass futures business rules mainly updates and references the new national standard number,and changes the delivery product name from first-class to ordinary grade,while keeping other contents unchanged.
The reporter learned that the revised rules for glass futures business have also received widespread market support.The interviewed companies stated that in recent years,the size of the glass futures market has grown rapidly,the representativeness of futures prices has gradually increased,and the participation of industrial enterprises has continuously increased,resulting in a significant increase in delivery scale.
"Since its listing,glass futures have operated steadily with relatively stable delivery volumes,with an average monthly delivery volume of over 10000 tons in the past three years."Hu Peng,senior analyst at CITIC Securities Futures Nenghua,said that the latest revision of the glass futures business by Zhengzhou Commodity Exchange is a timely response to the newly implemented national standard for flat glass,and also a strong support for the development of the glass spot market and industry."The new national standard and the new glass delivery standard have not changed much overall,and are still the mainstream products with the largest circulation and strongest demand in the market,reflecting the trend of high-quality development in the industry."
"The revision of the detailed rules for glass futures business this time,closely following the changes in the spot market,is conducive to industrial enterprises better participating in risk management in the futures market."Huo Dongkai,the head of the futures and cash department of Hebei Wangmei Industrial Group,said that the change in the name of glass futures delivery products by Zhengzhou Commodity Exchange is in line with the actual situation of the spot market,which is conducive to the smooth progress of glass delivery and promotes further integration of futures and cash.
In Huo Dongkai's view,the improvement of futures business rules will contribute to the further development of the glass futures market,provide more convenience for industrial customers to participate in futures,improve the operational quality of the futures market,and promote the coordinated development of futures and spot."The modification of this rule will promote the participation of glass spot enterprises,and manufacturers are more willing to lock in profits through hedging.The revision of the rule is the result of the market's common expectation."Huo Dongkai said.
Hu Peng stated that in the future,more glass companies will participate in the glass futures market and use the futures market for hedging,and the delivery service capability of glass futures is expected to take a new level.
