Will the cost of direct-spun PSF keep down under the refinery capacity expansion?
——Ji Feng, trader of Wanxiang Hartree

Ji Feng, trader of Wanxiang Hartree, delivers his report of Will the cost of direct-spun PSF keep down under the refinery capacity expansion? 
 

The report is divided into two parts. 

Firstly, the refinery capacity expansion. He analyzes expansion plan and supply and demand and supply-demand balance of China refinery plant, PX, PTA, MEG and polyester in the next few years. More private enterprises invest from downstream to upstream, lay out refining, which has strong competitive advantage with an integrated industry chain from filament yarn spinning to oil refining and enhances vertical depth of the industry. China will add 117 million tons of refining capacity by 2022, and the total refining capacity will reach 890 million tons. PX production may grow rapidly in 2019-2022. 

Secondly, Derivatives (chemicals) market trading mode. He introduces bulk commodity market classification and derivatives trade characteristics. It is divided into forward, futures, option and swap. And then he details SWAP trading mode and characteristics: 1. Liquidation to avoid counterparty credit risk and contracts are relatively standardized, liquidity is improved 2. Protect fund security 3. Providing fair settlement reference price 4. Customers offline matching to conclude transaction