Mei Chang, Assistant Manager of Third Commodity Department of Zhengzhou Commodity Exchange, delivers her report of PSF futures market development and application of PSF futures tool.

The report is divided into four parts.

Firstly, Ms. Mei introduced the profile of Zhengzhou Commodity Exchange (ZCE), from the perspective of development history, listed commodities, business scope, etc.

Secondly, Ms. Mei made an introduction to PSF futures. China ranked first in the world in terms of PSF industry chain, featured by self-sufficiency. Then, Ms. Mei introduced details about the delivery PSF futures contracts.

Thirdly, Ms. Mei shared the situation of PSF market operation. She pointed out that PSF companies can adopt futures tool to lock processing profit, downstream spinners can reduce purchasing cost by participating futures market, and traders can connect futures and spot markets.

Lastly, Ms. Mei shared two examples of how companies use PSF futures as a tool to lock processing spread and achieve a win-win result. Then, Ms. Mei mentioned ZCE's key tasks in developing PSF options, PX futures and options, etc.