Li Bin, Vice Chairman of the China Petroleum and Chemical Industry Federation: Derivatives Empower the Energy and Chemical Industry to Stabilize and Strengthen Its Chain

On October 13, the Derivatives and Chemical Industry Forum, a warm-up forum for the 19th International Oils and Oilseeds Conference and Agricultural and Livestock Industry (Derivatives) Conference, was held in Dalian.

Li Bin, Vice Chairman of the China Petroleum and Chemical Industry Federation, attended and delivered a speech. He said the forum opened another window for industry-finance connectivity in the energy and chemical sector.

Li Bin noted that this year marks the opening year of the 15th Five-Year Plan, and the petroleum and chemical industry has generally maintained steady progress.

From January to August, the industrial added value of large-scale enterprises rose 2.6% year on year, operating revenue reached 10.69 trillion yuan with a year-on-year increase of 7.1%, total profit reached 722.94 billion yuan with a year-on-year increase of 44.0%, and total import and export trade reached 645.17 billion U.S. dollars with a year-on-year increase of 7.1%. All four core indicators grew simultaneously.

However, the external environment remains complex and severe, and domestic problems such as "low-end oversupply and high-end shortage" still exist, strengthening enterprises' demand for price risk management.

"The price discovery and risk management functions of the futures market are important tools for the real economy to cope with cyclical fluctuations," he said. He noted that the Dalian Commodity Exchange has launched petrochemical futures products including LLDPE, PVC, PP, ethylene glycol, styrene, liquefied petroleum gas and pure benzene, and in 2025 listed three chemical monthly average price futures, promoting the implementation of basis trading and the combination of futures and spot.

Li Bin said the China Petroleum and Chemical Industry Federation is willing to deepen all-round cooperation with the Dalian Commodity Exchange, jointly carry out industry research, contract rule optimization, industry training and regular exchanges, and explore new paths for derivatives to serve industrial transformation around green and low-carbon development and the security of industrial and supply chains, helping the industry stabilize and strengthen its chain and achieve high-quality development.