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Dalian Commodity Exchange (DCE) officially lists the ethenylbenzene futures on September 26, and the first order among industrial clients is made by China-Base Petrochemical Co., Ltd. (CBP).
CBP, a majority-owned subsidiary of China-Base Ningbo Group, has specialized in the trading of chemical commodities like Linear Low Density (LLDPE), polypropylene (PP), methyl alcohol, ethylene glycol and ethenylbenzene and has a stable futures trading team and abundant futures hedging experience.
CBP Ethenylbenene Product Manager Sun Lu says that CBP started to take part in the futures market trading in 2008 and has set up a professional futures team. Its research on futures and spot strategies as well as risk management has been increasingly mature with the accumulated experience over the past years. At present, products it trades in the spot market are all hedged in the futures market.
“Futures has become a stabilizer and booster for the development of our company.” Sun says, “Our LLDPE and PP basis trading has accounted for over half of the total trading volume of each product, and the futures-spot combined operation for other products has become our basic operational strategy.”
With the approaching of the listing of ethenylbenzene futures, CBP has been well prepared for the trading on its first trading day, September 26. But making the first order among industrial clients is really a surprise for CBP.
Sun says that CBP will make full use of the ethenylbenzene futures to manage its spot operation risks and actively serve the upstream and downstream enterprises in cooperation. It will enable more enterprises in the industry chain to learn about and recognize futures and learn to take part in both the futures and spot trading through basis trading.
