I'm in the county town, and you say I'm a big shot?

Chapter 567 From the Futures Market to the Spot Market

Shi Guangrong also left in a hurry, and the room immediately became quiet.

Fang Qingye glanced at the howling north wind outside, too lazy to go to the bank, turned on the computer on her desk, and began searching for various news about methanol futures and spot markets.

Since we've decided to participate, we must take it seriously.

Isn't it said that Ele.me will receive additional investment in the future?

Let's try to get something from here first.

During this period, besides going to the bank on time to handle work, Fang Qingye focused her attention on methanol, especially the spot market.

Today is Friday, December 20th. Fang Qingye is planning to go to Shanghai this afternoon.

I had arranged with Bai Ou beforehand to go to Shanghai for the weekend, mainly to attend the wedding of Bai Ou's college classmate, Quan Shasha.

After graduating with a master's degree, Quan Shasha stayed in Shanghai and joined the legal department of Jinwaitan Group. She was determined to find a local Shanghainese man, preferably a tall, rich, and handsome one.

Finally, he got his wish and I heard that he found the son of a company owner, so he could be considered a rich second generation.

The car was driving on a smooth highway. Fang Qingye, having nothing to do, took out her phone to browse the web. Of course, she wasn't just browsing randomly; she was looking at the two major domestic methanol spot trading markets:
China Methanol Network and Netsun Methanol Trading Market
Fang Qingye visits these two platforms every day to closely monitor methanol price changes. Today, he suddenly discovered that there were 15 spot methanol transactions, each totaling about 2000 tons, with a selling price of only 4000 yuan per ton, about 20% lower than usual!

Let's take a look at the spot trading locations: Suzhou, Wuxi, and Ningbo!
Oops
not bad.

Lin Guangmao and his team finally convinced the bosses in southern Jiangsu and eastern Zhejiang to start selling off their methanol to drive down spot prices!

Fang Qingye immediately switched to the futures trading market. The daytime trading session had ended, but towards the close, the price of the methanol main contract M1501, which had been rising, suddenly fell due to large sell orders!

It seems that changes in the spot market are quickly reflected in the futures market.

3 tons of spot methanol isn't a lot; it's probably just those bosses testing the waters, and it remains to be seen whether Jiang Wei will take it on.

If they take over, they'll likely have more stock available for sale at a discounted price.
Fang Qingye stared at it for a while, then turned off her phone.

The show is about to begin; let's see how it goes.

He closed his eyes slightly.

The sudden and dramatic change in methanol prices in the spot market quickly caught the attention of Jiang Wei, who was far away in Chengdu.

In the general manager's office of Xinhua Chemical Materials Co., Ltd., Jiang Wei sat in his boss's chair, staring at the computer screen, deep in thought.

He's been incredibly busy lately.

On the one hand, they mobilized a large amount of funds to go long on methanol futures prices, while simultaneously controlling 42 futures accounts and investing over a billion yuan to go long on the methanol 1501 contract, thus causing a rapid rise in the market price. The price of the main contract, M1403, was driven from 2700 yuan to the current 4350 yuan in one fell swoop.

Of course, that's still not enough.

He reached a secret agreement with Shencheng Shenggui Technology, Haitong Company, Jiangxi Ruiqi Asset Management in Jiangxi Province, and others to jointly go long on methanol futures. Haitong Company's parent company is Haitong Futures, and Ruiqi Asset Management's parent company is Ruiqi Futures!

This indirect manipulation of futures prices through futures companies not only circumvents exchange position limits but also creates the illusion of abundant and powerful long positions in the market.

In the spot market, in an attempt to artificially inflate methanol spot prices, Xinhua Company increased its methanol inventory from 10 tons to 12 tons from October to December 2014, an increase of 247%!

He was satisfied with the results of his large investment in both futures and spot markets.

As of now, the total unrealized profit on all futures accounts has reached 25 billion! Jiang Wei looked at this number and a satisfied smile appeared on his face.

However, today, more than a dozen large orders suddenly appeared in the spot market at prices 20% lower than usual. Jiang Wei immediately realized that something was wrong. Upon checking the spot trading locations, he found that they were all concentrated in southern Jiangsu and eastern Zhejiang.

"Damn it, these guys are jumping out to oppose me!" Jiang Wei couldn't help but curse.

After lighting a cigarette and taking a few puffs, Jiang Wei stared at the screen for a while, then suddenly picked up the landline on his boss's desk and made a call.

Soon a man in his thirties knocked on the door and came in; it was his assistant, Zhou Fan.

"Zhou Fan, how much money does the company have in its accounts?" Jiang Wei asked.

“There’s not much left; less than 3 million is available,” Zhou Fan said in a low voice.

"3 million is nothing!" Jiang Wei cursed.

"President Jiang?"

“Take a look at this.” Jiang Wei turned the screen to the side, and Zhou Fan looked at it carefully, also looking astonished.

"Someone is dumping shares in the spot market!"

“That’s right. I never expected the short sellers to pull this stunt,” Jiang Wei said sinisterly.

"As far as I know, those shorting methanol futures are mainly some futures companies and super big players. I heard that the so-called Four Heavenly Kings, such as Lin Guangmao, are involved, but none of them have the ability to trade in the spot market."

Zhou Fan frowned and analyzed: "The sudden appearance of these dozen or so spot sell-offs from southern Jiangsu and eastern Zhejiang may be due to short sellers contacting some business owners in these areas to short sell together!"

"Your analysis is very correct." Jiang Wei gave Zhou Fan an approving look.

"Many of these chemical company owners in the Jiangsu and Zhejiang areas use methanol as their raw material. Huaxin Chemical has a monopoly on methanol reserves and has driven up spot prices, which has made them unhappy for a long time," Jiang Wei said with a smile.

"What I didn't expect was that these short sellers would actually join forces with real business owners. This is something that has never happened before. Who came up with this idea, and who is the one who brought them together?"

Jiang Wei seemed to be talking to himself, or perhaps asking Zhou Fan a question.

"I reckon it'll still be Lin Guangmao and the others," Zhou Fan replied after thinking for a moment.

"It's not important to talk about these things now. The key is how we deal with it," Jiang Wei said, looking at the computer screen. "We have to buy up tens of thousands of tons of methanol. Otherwise, once the spot market price drops, it will inevitably affect the futures price. If the prices resonate, then we'll be in trouble!"

“However, I’m worried that these bosses have more than just 30,000 tons on hand! I estimate they have a lot of spot goods to sell, and our funds are limited, plus we need to invest in the futures market,” Zhou Fan warned.

"Yes," Jiang Wei said with a wry smile, "To be honest, I didn't expect the short sellers to be so tenacious. But we've come this far, there's no turning back. If we sell now, no one will be able to absorb the orders, and the short sellers will take the opportunity to continue shorting. All our previous efforts will be in vain."

As Jiang Wei spoke, he suddenly took a deep drag on his cigarette and said to Zhou Fan, "Contact the owners of seven companies, including Chengdu Longjin, Sutian, and Dingda Petrochemical. I'll treat them to dinner tonight!"

"Mr. Jiang, are you planning to join forces with them to purchase spot goods?" Zhou Fan immediately realized what Jiang Wei was about to do.

“Yes, they all have a lot of methanol on hand, and they certainly don’t want the price to plummet. If they don’t act now, when will they?!” Jiang Wei sneered.

"Let's have a showdown in the spot market!"

(End of this chapter)