Basic knowledge of caustic soda and introduction of option contract

First, the introduction of caustic soda basic knowledge

Physical and chemical properties of caustic soda: caustic soda can be divided into solid and liquid. The density of solid alkali is 2. 13g/cm_, the melting point is 3 18℃, the boiling point is 1388℃, the saturated vapor pressure is 0. 13 kpa(739℃), the appearance is white crystalline powder, and it is easily soluble in water, ethanol and glycerol.

The caustic soda production is mainly liquid caustic soda, with 32% liquid caustic soda as the main model. According to the mass fraction of sodium hydroxide, liquid alkali can be subdivided into 32% liquid alkali and 50% liquid alkali. 32% liquid caustic soda is the main type of caustic soda products, and its output accounts for about 60% of caustic soda output, followed by 50% liquid caustic soda, accounting for about 20%.

Ion exchange membrane technology is the mainstream technology, and electricity accounts for the largest proportion of production costs. Ion exchange membrane technology is the mainstream production method in the world today. The China market is dominated by ion-exchange membrane, and its capacity accounts for 99.65% of the total capacity of caustic soda in China. At the raw material end, the unit consumption per ton of caustic soda raw salt is 1.5 1 ton, and the cost of raw salt accounts for 12%- 18%. The power consumption per ton of caustic soda production is about 2300-2400 kWh, accounting for about 60% of the total cost of caustic soda production.

The main producing areas of caustic soda in China are Shandong, Inner Mongolia and Xinjiang: in 2022, the output of caustic soda in China will be 39.805 million tons. The average annual growth rate from 20 13 to 2022 is 4.0%. Before 20 14, the entry threshold of caustic soda industry was low and the output increased rapidly. After 20 14, with the promotion of supply-side reform and the tightening of environmental inspection, the growth rate of caustic soda production slowed down. In recent years, with the continuous expansion of downstream alumina production capacity, caustic soda production capacity has also increased. In 20021year, the top five provinces/autonomous regions in China were Shandong, Inner Mongolia, Xinjiang, Jiangsu and Zhejiang, producing a total of 22.082 million tons of caustic soda, accounting for nearly 60% of the national output.

The downstream application of caustic soda in China is extensive, with the largest proportion of alumina: the downstream application of caustic soda in China is extensive, and the downstream consumption of alumina accounts for the largest proportion, followed by printing and dyeing, chemical fiber, and other fields such as papermaking, water treatment, lithium batteries and medicine. From the brand point of view, 50% caustic soda is mainly used in alumina, papermaking, soap making, textile, printing and dyeing chemical fiber and other fields, while 32% caustic soda is mainly used in water treatment, light industry and chemical industry. In the past year, the average monthly consumption of caustic soda in China was about 3.3 million tons, slightly lower than the average monthly production of caustic soda. In 2022, affected by the epidemic, domestic demand declined, and the demand in the downstream printing and dyeing and viscose industries was weak.

Domestic caustic soda trade flows from west to east and from north to south: According to public information, the top three regions of China's caustic soda export in 20021year were Inner Mongolia, Shandong and Xinjiang, and the net export volume of the three places accounted for more than 60% of the total export volume. Shanxi, Guangdong and Guangxi are the top three regions in China in terms of net transfer of caustic soda, accounting for nearly 60% of the total transfer.

China is a net exporter of caustic soda, and its export has been strong in recent years: during 20 18-2022, the total annual import of caustic soda is about 44,000 tons, and the total annual export of caustic soda is about 1.7 million tons. According to Baichuan Fu Ying, China liquid caustic soda is mainly imported from Sweden, Japan, Norway, the United States and other countries, and exported to Australia, Indonesia and other countries.

1. Physical and chemical properties of caustic soda

Caustic soda, scientific name sodium hydroxide, chemical formula NaOH, also known as caustic soda and caustic soda, is an inorganic compound. Caustic soda is the basic chemical raw material of the national economy, and it is one of the "three acids and two alkalis" together with soda ash. Soda can be divided into solid and liquid. The density of solid alkali is 2. 13g/cm_, the melting point is 3 18℃, the boiling point is 1388℃, the saturated vapor pressure is 0. 13 kpa(739℃), the appearance is white crystalline powder, and it is easily soluble in water, ethanol and glycerol. Caustic soda is corrosive to fiber, skin, glass and ceramics. When dissolved or diluted with a concentrated solution, it releases heat. The neutralization reaction with inorganic acids can also generate a lot of heat and generate corresponding salts; Reacting with metallic aluminum and zinc, nonmetallic boron and silicon to release hydrogen; Disproportionation of chlorine, bromine, iodine and other halogens. Metal ions can be precipitated into hydroxide from aqueous solution; It can saponify oil and generate corresponding organic sodium salts and alcohols. Soda should be stored in a cool, dry and well-ventilated warehouse. Stay away from fire and heat sources. The storage temperature shall not exceed 35℃ and the relative humidity shall not exceed 80%. The packing must be sealed against moisture. It should be stored separately from flammable materials and should not be mixed. The storage area should be equipped with suitable materials to control leakage.

2. The caustic soda production is mainly liquid caustic soda, with 32% liquid caustic soda as the main model.

Soda soda can be divided into liquid alkali and solid alkali according to its morphology, in which liquid alkali accounts for about 80% and solid alkali accounts for about 20%. Liquid alkali can be directly sold as a product, and liquid alkali can be further concentrated to make solid alkali. According to the mass fraction of sodium hydroxide, liquid alkali can be subdivided into 32% liquid alkali and 50% liquid alkali. 32% liquid caustic soda is the main type of caustic soda products, and its output accounts for about 60% of caustic soda output, followed by 50% liquid caustic soda, accounting for about 20%. Solid caustic soda can be divided into flake caustic soda and granular caustic soda according to its morphology, and flake caustic soda accounts for about 14% of caustic soda output. According to the mass fraction of sodium hydroxide, solid caustic soda can be subdivided into 96% solid caustic soda and 99% solid caustic soda, among which the mainstream model of solid caustic soda is 99% flake caustic soda.

3. Ion exchange membrane is the mainstream process, and electricity accounts for the largest proportion in the production cost.

The production process of caustic soda includes chemical method (causticization method) and electrolytic method. Causticization is made by the reaction of lime milk and soda water solution. Due to low purity and poor economic benefits, caustic soda produced by this method is only produced on a small scale in a few countries. The main raw material of electrolysis is crude salt. Electrolytic methods are divided into diaphragm method, mercury intrusion method and ion exchange membrane method. Ion exchange membrane technology is the mainstream production method in the world today. The China market is dominated by ion-exchange membrane, and its capacity accounts for 99.65% of the total capacity of caustic soda in China. Diaphragm caustic soda will gradually withdraw from the caustic soda industry according to market rules because of its high energy consumption and lower product quality than ion-exchange membrane caustic soda.

The unit consumption of raw salt per ton of caustic soda at the raw material end is 1.5 1 ton, and the raw salt cost accounts for 12%- 18%. The power consumption per ton of caustic soda production is about 2300-2400 kWh, accounting for about 60% of the total cost of caustic soda production. Relatively speaking, the production cost of caustic soda in northwest and north China is relatively low because of its rich resources. According to the prospectus of Beiyuan Group, the unit consumption of raw salt in caustic soda production in 20 19 was 0.78 tons, the unit consumption of electricity was 1365.74 degrees, and the unit consumption of steam was 0.55 tons. In the total production cost, electricity cost accounts for about 55%, and raw salt cost accounts for about 9%. Generally speaking, electricity is the most important component in the production cost of caustic soda. In addition, chlorine gas is also produced in caustic soda production, so the production of 1 ton ionic membrane caustic soda can produce 0.886 tons of chlorine gas. In chlor-alkali industry, the metric electrochemical unit cost is usually used as the accounting unit, referred to as ECU for short, that is, the cost of producing 1 unit chlorine gas and 1. 13 unit caustic soda (100%).

4. Caustic soda and PVC are the core products in chlor-alkali industry chain.

From the observation of the FedWatch Fed, the market's high expectations for the Fed to raise interest rates have been significantly improved. On July 29th, the market predicted that the probability of the federal funds rate reaching 375-400BP at the Federal Reserve interest rate meeting in June 5438+February was only 0.8 1%, and now it has risen to 6 1.77%. At the same time, a month ago, the market predicted that the federal funds rate would reach 325-350BP at the Federal Reserve interest rate meeting in June 5438+February. However, after forecasting that the Fed will raise interest rates ahead of schedule, the market forecasts for 1 1 and 12 to raise interest rates for two months are 50 basis points and 25 basis points respectively. The overall tone of the slowdown remains unchanged, and the Fed may start to hold its ground next year. If the Fed's actions are in line with market expectations, then September will be the last time for the Fed to raise interest rates substantially, and it will end after the interest rate meeting in September.

5. Continue to lighten positions and reduce speculative short positions in the futures market.

Before 20 15, the global caustic soda production capacity increased rapidly, and from 20 15, the global caustic soda production capacity increased steadily. Up to 202 1, the global caustic soda production capacity is about 86.446 million tons, and China has the largest caustic soda production capacity in the world. Among the global caustic soda production capacity distribution in 20021year, China has 27.675 million tons, accounting for 32%; The United States 1764 1 ten thousand tons, accounting for 21%; Japan is 565,438 million+049,000 tons, accounting for 6%; Germany 4.608 million tons, accounting for 5%, India 3.752 million tons, accounting for 4%; Other countries account for 32%.

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On the demand side, the global demand for caustic soda is fluctuating and rising. From 20 10 to 2022, the global demand for caustic soda will increase from 60.9 million tons to 84.52 million tons. Distribution pattern of demand: China is also the largest consumer of caustic soda in the world. In 2022, the demand for caustic soda in China accounted for 44.8% of the world, followed by 65,438+04.2% in North America and 65,438+02.3% in Western Europe.

According to the data of chlor-alkali chemical information network, in 2022, the global caustic soda trade accounted for more than 15% of the output, mainly liquid caustic soda products, and the circulation of solid caustic soda products was relatively small because of its relatively low output. The United States is the country with the largest export volume of liquid caustic soda in the world, which has a cost advantage. The annual export volume of liquid caustic soda accounts for 35% of the global liquid caustic soda trade volume. As the largest producer of caustic soda in the world, China ranks second in export volume. The main import areas of liquid caustic soda in the world are Australia, Brazil, Finland, Canada, USA, Sweden, France, Netherlands and Spain. Among them, Australian liquid caustic soda imports account for more than 65,438+0/5 of the global liquid caustic soda trade, mainly from China and the United States. In 20021year, the export volume of caustic soda products in India exceeded the import volume for the first time, and the trade direction changed. The local caustic soda export volume will continue to increase in 2022. In addition to China's exports, Indian, Russian, Polish, Thai, Belgian and Saudi Arabia also have a small amount of exports. Among them, China has the largest export volume of solid caustic soda, accounting for more than 40% of the global solid caustic soda trade. The export volume of solid alkali in India, Thailand and Saudi Arabia also increased. The main import areas of solid alkali in the world are Vietnam, Nigeria, Indonesia, Uzbekistan, Tanzania and Kazakhstan.

6. The main producing areas of caustic soda in China are Shandong, Inner Mongolia and Xinjiang.

In 2022, the output of caustic soda in China was 39.805 million tons. The average annual growth rate from 20 13 to 2022 is 4.0%. Before 20 14, the entry threshold of caustic soda industry was low and the output increased rapidly. After 20 14, with the promotion of supply-side reform and the tightening of environmental inspection, the growth rate of caustic soda production slowed down. In recent years, with the continuous expansion of downstream alumina production capacity, caustic soda production capacity has also increased. In 20021year, the top five provinces/autonomous regions in China were Shandong, Inner Mongolia, Xinjiang, Jiangsu and Zhejiang, producing a total of 22.082 million tons of caustic soda, accounting for nearly 60% of the national output.

The regional distribution of caustic soda production capacity in China is mainly close to raw material producing areas or consumption areas. Northwest China is rich in raw salt, coal and other resources, while East China and North China are concentrated in alumina, textile printing and dyeing and paper industry. The concentration of caustic soda industry is relatively low. According to the data of Baichuan Fu Ying, among the 65,438+082 caustic soda enterprises, only three have an effective capacity of over 654,380+000 million tons, of which the effective capacity of CR5 is 65,438+02%, that of CR20 is 65,438+09% and that of Cr20 is 33%. Among the major caustic soda producers, two enterprises in Xinjiang have an effective capacity of over one million tons, five enterprises in Shandong Province have an effective capacity of over one million tons, Shaanxi Beiyuan has an effective capacity of 800,000 tons, Jiangsu Taixing Xinpu has an effective capacity of 750,000 tons, and Shanghai chlor-alkali has an effective capacity of 720,000 tons.

7. The downstream of caustic soda is widely used in China, and alumina is the largest downstream.

China's caustic soda is widely used downstream, with alumina accounting for the largest proportion of downstream consumption, followed by printing and dyeing, chemical fiber, paper making, water treatment, lithium batteries, medicine and other fields. From the brand point of view, 50% caustic soda is mainly used in alumina, papermaking, soap making, textile, printing and dyeing chemical fiber and other fields, while 32% caustic soda is mainly used in water treatment, light industry and chemical industry. In the past year, the average monthly consumption of caustic soda in China was about 3.3 million tons, slightly lower than the average monthly production of caustic soda. In 2022, affected by the epidemic, domestic demand declined, and the demand in the downstream printing and dyeing and viscose industries was weak.

7. 1. China's alumina production capacity is mainly distributed in Shandong, Shanxi and Guangxi.

In alumina production, caustic soda is mainly used to adjust the pH value of aluminum liquid, increase grain size, and improve production efficiency and product quality. Soda ash and caustic soda are used to prepare cryolite and treat bauxite during aluminum smelting. Theoretically, the production of 1 ton alumina consumes 0. 14-0. 16 ton caustic soda, accounting for about 16% of the alumina production cost.

The alumina production capacity is mainly distributed in Shandong, Shanxi, Guangxi, Henan and other provinces. The total production capacity of Shandong is about 30 million tons, that of Shanxi is about 26.55 million tons, that of Guangxi is about1510 million tons, and that of Henan is about10 million tons. Among the major alumina producers, there are 4 in Shandong, 3 in Shanxi and 1 in Hebei, Chongqing and Guangxi. The main groups are China Aluminum, Wei Qiao Group, Xinfa Group, Jinjiang Group and east hope Group.

7.2. China's viscose staple fiber production capacity is mainly distributed in Xinjiang, Jiangxi and Hebei.

In the printing and dyeing industry, caustic soda is mainly used to remove impurities on the surface of cotton fiber, so that dyes can penetrate into the inner layer of fiber during dyeing and make dyeing more uniform. In the chemical fiber industry, cellulose can be treated with caustic soda to obtain alkali cellulose, and finally it can be made into viscose fiber (rayon). Generally, it takes 1 ton of caustic soda to produce 1 ton of rayon. The demand for caustic soda in printing and dyeing and chemical fiber industries is mainly affected by the market situation in textile industry.

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China's viscose staple fiber production capacity is mainly distributed in Xinjiang, Jiangxi, Hebei, Jiangsu and other provinces, with a total production capacity of about 970,000 tons in Xinjiang, 920,000 tons in Jiangxi, 865,000 tons in Hebei and 860,000 tons in Jiangsu. Among the major manufacturers, Hebei Sanyou Group has a production capacity of 830,000 tons and Xinjiang Zhongtai Textile has a production capacity of 400,000 tons. Sedley Group (foreign capital) is one of the largest cellulose fiber manufacturers in the world.

7.3. China's wood pulp production capacity is mainly distributed in Shandong, Guangxi and Guangdong.

In the paper industry, caustic soda is used to remove lignin, carbohydrates and resins, produce pulp with cellulose as the main component, and improve paper quality; In addition, caustic soda as an auxiliary agent can also play a role in bleaching. The proportion of caustic soda used in pulp production is relatively fixed, and 1 ton of pulp usually needs to consume 0.08 tons of caustic soda. In the process of papermaking, the consumption of caustic soda varies greatly due to the different types of finished paper. Raw material caustic soda accounts for about 5% of the production cost of wood pulp.

China's wood pulp production capacity is mainly distributed in Shandong, Guangxi, Guangdong and Hainan provinces. The total production capacity of Shandong is about 729,000 tons, that of Guangxi is about 340,000 tons, that of Guangdong is about 257,000 tons, and that of Hainan is about 6.5438+0.9 million tons. Among the major wood pulp producers, Asia Pacific Senbo has a production capacity of 2,654.38+million tons, and Hainan Jinhai has a production capacity of 6,543.8+0.9 million tons. Sun Paper and Chenming Paper are key enterprises in the paper industry.

8. Domestic caustic soda trade flows from west to east and from north to south.

The caustic soda trade in China flows from west to east and from north to south. Because of its characteristics, liquid alkali is generally sold by car in the province and surrounding areas within a radius of 300 kilometers; More than 300 kilometers are rarely sold by water, but generally appear in regional trade near the port. The inland transportation radius of solid alkali is 300-500 kilometers, and the transportation radius of the northwest-inland railway transit line can reach 2000 kilometers. According to public information, in 20021year, Inner Mongolia, Shandong and Xinjiang were the top three regions in China, and the net transfer of caustic soda in these three regions accounted for more than 60% of the total transfer. Among them, the sales of caustic soda in Shandong flow to the surrounding areas by automobile transportation and to Fujian, Guangdong and other places by sea. Xinjiang and Inner Mongolia mainly sell solid alkali, which mainly flows to East China, South China and Central China. Shanxi, Guangdong and Guangxi are the top three regions in China in terms of net transfer of caustic soda, accounting for nearly 60% of the total transfer.

9. China is a net exporter of caustic soda, with strong export in recent years.

China is a net exporter of caustic soda, and its import volume is very small compared with its export volume. 20 18-2022, the average annual import of liquid caustic soda in China is about 35,000 tons, and the average annual export of liquid caustic soda is about1153,000 tons; The average annual import of solid alkali in China is about 9,000 tons, and the average annual export is about 547,000 tons. Generally speaking, during the period from 20 18 to 2022, the total annual import of caustic soda is about 44,000 tons, and the total annual export of caustic soda is about10.7 million tons.

From the overall growth rate, the export volume of China liquid caustic soda surged in 2022, which was mainly affected by the overseas energy crisis, rising prices and the commissioning of a large number of alumina factories downstream of overseas caustic soda. According to Baichuan Fu Ying, at present, liquid caustic soda imported from China mainly flows to Shanghai, Jiangsu, Guangdong, Shandong and other places, and is mainly exported from Tianjin, Jiangsu, Shandong and Guangdong. At present, China liquid alkali is mainly imported from Sweden, Japan, Norway, the United States and other countries, and exported to Australia, Indonesia and other countries.

Two. Introduction of caustic soda futures and options contracts

Description of the contract: Compared with soda ash contract, the unit of caustic soda contract is 30 tons/batch (higher than 65,438+00 tons/batch). Assuming that the benchmark price of futures contract is flat spot price (dry weight), the contract value of caustic soda futures contract per lot is 2650 yuan/ton *30 tons/lot = 79500 yuan/lot. Compared with some listed industrial varieties, the unit contract value is relatively large, mainly based on the principle of steady listing, and the participation threshold is raised.

Margin system: The caustic soda futures contract charges a margin of 5% of the contract value in general months, which reduces the financial pressure for upstream and downstream enterprises to participate. According to the above example, according to the minimum margin ratio, the unit margin for each lot of caustic soda contract is 3975 yuan/lot. It should be noted that according to the announcement of Zhengshang Institute on the listing of soda ash futures, the trading margin standard of the first batch of listed contracts SH2405, SH2406, SH2407, SH2408 and SH2409 is 9%.

Price limit system: Under normal circumstances, the daily price limit of caustic soda futures contracts is 4% of the settlement price of the previous trading day. It should be noted that according to the announcement of Zhengshang Institute on the listing of soda ash futures, the price limit of the first batch of listed contracts SH2405, SH2406, SH2407, SH2408 and SH2409 is 7%. According to the relevant provisions of the Management Measures for Futures Trading Risk Control of Zhengzhou Commodity Exchange, the price limit of caustic soda futures contracts on the day of listing is 14% of the contract benchmark price, and the price limit of new futures contracts will be restored to the actual price limit of futures contracts on the next trading day, that is, 7%.

Quality regulation of delivery products: caustic soda futures benchmark delivery products: IL-III liquid caustic soda with sodium hydroxide content ≥32% which meets the requirements of People's Republic of China (PRC) national standard "Sodium hydroxide for industrial use" (GB/T209-20 18). Dry weight of benchmark delivery = wet weight ×0.32. Alternative deliverables and premium: IL-I liquid caustic soda that meets the requirements of People's Republic of China (PRC) national standard "Sodium hydroxide for industrial use" (GB/T209-20 18). The premium is subject to the announcement of the exchange. Dry ton weight delivered by substitute = wet ton weight ×0.5.

Delivery area: In terms of delivery area, the benchmark delivery place of caustic soda futures contract is Shandong Province, and the delivery benchmark price is the tax-included price of auto plate delivery when 32% liquid caustic soda leaves the warehouse in Shandong. The production and sales volume of caustic soda in Shandong province ranks first in the country, and it is the trade distribution center and price change vane of the national caustic soda market. Other delivery areas include Jiangsu, Zhejiang and Shaanxi. Shandong, Jiangsu and Zhejiang are the main production and sales places of caustic soda, and the price of caustic soda is highly conductive and consistent. Shaanxi is one of the main producing areas of caustic soda, surrounded by many alumina demand enterprises and traders, which has great influence in the northwest caustic soda market.

1. caustic soda futures contract

1. 1. Brief introduction of the contract

Caustic soda is an important chemical raw material, which is closely related to some futures varieties that have been listed: Caustic soda is the upstream raw material of alumina, an important additive in the process of pulp production, and its associated product chlorine is also the raw material for PVC production. China is the largest producer and consumer of caustic soda in the world. After the listing of caustic soda futures and options, continuous, open, authoritative and transparent futures prices can be formed, which can provide more effective reference for spot pricing and enterprise operation, improve industry pricing efficiency, optimize market resource allocation, and help industrial transformation and upgrading and high-quality development.

Compared with soda ash contract, the trading unit of caustic soda contract is 30 tons/lot (higher than 10 tons/lot). Assuming that the benchmark price of futures contract is flat spot price (dry weight price), the contract value of caustic soda futures contract per lot is 2650 yuan/ton *30 tons/lot =79500 yuan/lot. Compared with some listed industrial varieties, the unit contract value is relatively large, mainly based on the principle of steady listing, and the participation threshold is raised.

1.2. Degree of risk control

1.2. 1. Margin system

The minimum trading margin standard for caustic soda futures contracts is 5% of the contract value. In different trading hours of each contract, Zhengshang will adjust the margin ratio charged. The reference standards are as follows:

The caustic soda futures contract charges a deposit of 5% of the contract value in general months, which reduces the financial pressure for upstream and downstream enterprises to participate. According to the above example, according to the minimum margin ratio, the unit margin for each lot of caustic soda contract is 3975 yuan/lot. Take the SH2405 contract as an example. Before April 15, 2024, the trading margin is 5% of the contract value. After April 16, the trading margin is adjusted to 10% of the contract value, and from May 1, the trading margin is adjusted to 20% of the contract value. It should be noted that according to the announcement of Zhengshang Institute on the listing of soda ash futures, the trading margin standard of the first batch of listed contracts SH2405, SH2406, SH2407, SH2408 and SH2409 is 9%.

1.2.2. Price restriction system

Under normal circumstances, the daily fluctuation of caustic soda futures contracts is limited to 4% of the settlement price of the previous trading day. It should be noted that according to the announcement of Zhengshang Institute on the listing of soda ash futures, the price limit of the first batch of listed contracts SH2405, SH2406, SH2407, SH2408 and SH2409 is 7%. According to the relevant provisions of the Management Measures for Futures Trading Risk Control of Zhengzhou Commodity Exchange, the price limit of caustic soda futures contracts on the day of listing is 14% of the contract benchmark price, and the price limit of new futures contracts will be restored to the actual price limit of futures contracts on the next trading day, that is, 7%.

1.2.3. Position limiting system

In different trading hours of each contract, Zhengshang Institute has set different warehouse limit standards. The following example refers to the maximum number of speculative positions that members or customers can hold in futures contracts calculated unilaterally by the exchange. Hedging positions are subject to the examination and approval system and are not subject to the following restrictions.

1.2.4. Other degree of risk control

Other general risk control systems, such as trading limit system, large household reporting system, compulsory liquidation system and risk warning system, are similar to general commodity futures contracts. Other personalized risk control measures include adjusting transaction fee standards and differentiated declaration fees. For other risk control details, please refer to the Administrative Measures for Futures Risk Control of Zhengzhou Commodity Exchange.

1.3. Key delivery points

1.3. 1. Delivery method

The delivery unit of the caustic soda futures contract is 30 tons (dry tons), which is equivalent to 32% liquid caustic soda three tankers and 50% liquid caustic soda two tankers. Soda futures are realized by futures, including warehouse standard warehouse receipt delivery and factory warehouse standard warehouse receipt delivery. The matching methods of rolling delivery of caustic soda futures include response matching and institutional matching. Customers who do not have the qualifications for production, storage, use, operation or transportation of caustic soda shall not participate in the delivery of caustic soda futures. Please refer to the Management Measures for Futures Delivery of Zhengzhou Commodity Exchange and the Detailed Rules for Caustic Soda Futures Business of Zhengzhou Commodity Exchange for the detailed delivery process of each delivery method.

1.3.2. Delivery area

In terms of delivery area, the benchmark delivery place of caustic soda futures contract is Shandong Province, and the benchmark delivery price is the tax-included price of automobile plate delivery when 32% liquid caustic soda leaves the warehouse in Shandong. The production and sales volume of caustic soda in Shandong province ranks first in the country, and it is the trade distribution center and price change vane of the national caustic soda market. Other delivery areas include Jiangsu, Zhejiang and Shaanxi. Shandong, Jiangsu and Zhejiang are the main production and sales places of caustic soda, and the price of caustic soda is highly conductive and consistent. Shaanxi is one of the main producing areas of caustic soda, surrounded by many alumina demand enterprises and traders, which has great influence in the northwest caustic soda market.

1.3.3. Delivery quality regulations

Deliverable varieties of caustic soda futures benchmark: IL-III liquid caustic soda that meets the national standard of People's Republic of China (PRC) "Sodium hydroxide for industrial use" (GB/T209-20 18), with sodium hydroxide content ≥32%. Dry weight of benchmark delivery = wet weight ×0.32. Alternative deliverables and premium: IL-I liquid caustic soda that meets the requirements of People's Republic of China (PRC) national standard "Sodium hydroxide for industrial use" (GB/T209-20 18). The premium is subject to the announcement of the exchange. Dry ton weight delivered by substitute = wet ton weight ×0.5. Among caustic soda products, 32% liquid caustic soda accounts for the largest proportion and the price is representative, followed by 50% liquid caustic soda. It should be noted that the sodium hydroxide content in the national standard IL-III liquid alkali is ≥30%, while the sodium hydroxide content in the futures delivery grade is slightly higher. According to the investigation of Zheng Shang Institute, most products of liquid caustic soda producers can meet the standard of benchmark delivery. In addition, due to its safety problems and unstable price difference with liquid alkali, solid alkali has not been included in the deliverable.

1.3.4. Standard warehouse receipt

The standard warehouse receipt of caustic soda futures can be divided into warehouse standard warehouse receipt and factory standard warehouse receipt, and the standard warehouse receipt of caustic soda futures is non-universal standard warehouse receipt. The warehouse receipt is valid for 2 months, specifically, the standard warehouse receipt of caustic soda registered before 1, March, May, July, September and the 1 5th trading day (inclusive) of1should be in1,March, May and July. All expenses before the caustic soda arrives at the designated place and the outbound expenses for loading the goods into the automobile board shall be borne by the registrant of the standard warehouse receipt, and all expenses after loading the goods into the automobile board shall be borne by the consignee. Cost standards related to the delivery of caustic soda futures, such as delivery fee, storage fee, storage fee, inspection fee, etc. , which will be announced separately by the Exchange. It should be noted that storage fees and late payment fees are charged according to the standard of wet tons.

2. Soda option contract

The caustic soda option contract is similar to other listed on-site option contracts, and the exercise method is American option. The buyer can submit the exercise application at any trading time before the expiration date.

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