JKAI's sister company is recognized as a key supplier for the launch of bottle-grade PET futures in China

On August 30, 2024, the Zhengzhou Commodity Exchange officially launched bottle-grade PET (Polyethylene Terephthalate) futures, marking a significant milestone as bottle-grade PET resin becomes a key component of the polyester futures market. Wankai New Materials Co., Ltd., a core subsidiary of JKAI’s parent company, Zhink Group, was successfully included in the inaugural batch of designated delivery brands and exempt inspection brands by the exchange.

JKAI's Full Supply Chain Advantage and China's Leading Position

Bottle-grade PET is a high molecular polymer widely used in the production of beverage bottles, food packaging containers, cosmetic bottles, pharmaceutical bottles, as well as packaging for daily chemicals and frozen foods. China is the world's largest producer of bottle-grade PET resin, accounting for approximately 40% of global production as of 2023. This global leadership is not only reflected in production capacity but also in the full supply chain capabilities, from upstream raw materials (such as PTA and MEG) to downstream bottle-grade finished PET resin.

JKAI, leveraging the full supply chain advantage of its parent company, Zhink Group, uses the high-quality PET raw materials provided by its sister company, Wankai New Materials, to produce premium PET cups. This full supply chain production model not only ensures the quality and consistency of the products but also enhances production efficiency and cost control, giving JKAI a competitive edge in the market.

The Impact of Bottle-Grade PET Futures

The launch of bottle-grade PET futures, following the earlier introduction of PX, PTA, ethylene glycol, and staple fiber futures contracts, further improves the structure of the polyester futures market. For JKAI, this development is not only another industry-leading move by its parent company, Zhink Group, but also provides JKAI with more comprehensive risk management tools.

This new futures contract strengthens the integration between the futures and spot markets, offering companies more effective risk management and price discovery mechanisms, thereby further enhancing JKAI's market competitiveness. By hedging market risks and locking in raw material prices, JKAI can maintain operational stability and efficiency in an ever-changing market environment.

China's Growing Influence in the Global Market

As the world's leading producer and consumer of PET, China's influence in the polyester market will continue to grow with the development and internationalization of the futures market. The launch of bottle-grade PET futures reflects strong market demand and confidence in future applications. Zhink Group’s subsidiaries, JKAI and Wankai New Materials, will continue to play an important role in the global market by leveraging these new financial tools to achieve better risk management and price stability, thereby improving operational stability and efficiency.

Impact on International Trade

In the field of international trade, China's bottle-grade PET resin accounts for about 50% of the global market, with Wankai New Materials Co., Ltd. playing a crucial role in exports. For JKAI, the introduction of bottle-grade PET futures is expected to significantly improve market transparency and risk management capabilities, further promoting the company’s development in international markets and facilitating mutually beneficial international trade.

Through the futures market, JKAI will be able to conduct more accurate market forecasting and pricing, thereby enhancing price stability. Additionally, the transparent price discovery mechanism of the futures market will increase market liquidity and trading activity, attracting more investors and traders, synchronizing global prices, and aligning international markets. This development further consolidates Zhink Group's pricing authority in the global polyester market and optimizes international trade pricing models and supply chain management.

Conclusion

In conclusion, the launch of bottle-grade PET futures not only strengthens the polyester futures system, improves market transparency and liquidity, but also provides JKAI with more effective risk management tools. Leveraging the full supply chain production advantage and industry-leading position of its parent company, Zhink Group, JKAI continues to strengthen its competitiveness in the global market, promote global market integration, and drive mutually beneficial international trade.