His report is divided into three parts:

Firstly, Mr. Zhou pointed out that the domestic PET industry is confronted with severe operational pressure. This is attributed to overcapacity in PET capacity, continuous compression of processing spread, widespread losses among factories, as well as external risks arising from geopolitics and global trade wars.

Secondly, Mr. Zhou stated that enterprises can utilize futures hedging to convert the risk of absolute price fluctuations into basis risk. By leveraging basis trading, they can lock in profits, manage inventory and procurement costs, thereby enhancing the stability of business operations. He then cited a number of practical cases to illustrate these points.

Finally, Mr. Zhou opined that the PET bottle chip futures market is still in its early stages, and more enterprises need to participate to improve market liquidity. The integration of futures and spot markets is a crucial direction for the industry to address internal competition, achieve risk management, and realize the optimal allocation of resources.