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Dalian Commodity Exchange (DCE) officially listed PP futures on February 28 and Dubai Gold & Commodities Exchange (DGCX) in the Middle East also listed the same futures product on the same day. The two exchanges have sent the letter of congratulations to each other for the listing of PP futures. The listing of PP futures at the same time and the sending of congratulatory letters just reflect their common aspiration of strengthening communication and cooperation and jointly building the new global PP price system.
At the 2013 China Plastics Industry Conference held by DCE in Ningbo on June 5 last year, relevant persons in charge of DGCX and DCE exchanged views on the construction and development of plastics futures market, and they hoped that the two exchanges would list PP futures at the same time and would jointly build a new global PP price system. Afterwards, DGCX have sent staff to investigate in DCE twice. The two exchanges have conducted several communications on such issues as contract design and development and promised to list PP futures at the same time of this year.
Having decided to list PP futures on the same day, the two exchanges have sent each other a letter of congratulations to celebrate the listing of PP futures on each other’s market and to express their sincere aspiration of strengthening communication and cooperation in the future.
DGCX said in its congratulatory letter to DCE that China is the largest plastic products manufacturing and consumption country in the world and its PP production and consumption amount also ranks first in the world, which have laid a solid market foundation for the listing of PP futures in DCE’s market. The successive listing of LLDPE and PVC futures of DCE have provided China and global plastics market participants with effective risk-avoiding and investing instruments and have made distinguished contribution to the stable development of China’s plastics industry. The listing of PP futures will further expand futures market’s function in serving the plastics industry and will also further enrich DCE’s futures varieties and strengthen its influence in the real economy. DGCX hopes that both sides will continue to maintain communication with each other and achieve mutual benefits and common development after the listing of PP futures.
DCE wrote in its congratulatory letter to DGCX that Middle East is the largest energy and chemical products export area in the world and enjoys abundant spot goods basis of petrochemical industry. And the listing of PP futures on DGCX will provide PP manufacturers and export enterprises with more hedging measures and will then promote enterprises’ stable operation and enhance enterprises’ competiveness. China is the largest PP import country in the world and the simultaneous listing of PP futures on the two markets will undoubtedly provide more comprehensive risk-avoiding choices for the PP manufacturing, trading, and consumption enterprises in the world and thus promote the healthy and stable development of the whole industry.
Market participants believed that China and Middle East are the largest energy and chemical products import area and export area respectively in the world and the two exchanges’ simultaneous listing of PP futures will form echoing pattern in futures price and exert new influence on global PP price system.
DGCX’s Letter of Congratulations to DCE
Dalian Commodity Exchange:
Upon hearing the PP futures, your new product, are to be listed for trading on February 28, 2014, we’d like to extend our sincere congratulations.
China is the largest plastic products manufacturing and consumption country in the world and its PP production and consumption amount also ranks first in the world, which have laid a solid market foundation for the listing of PP futures in DCE’s market. The successive listing of LLDPE and PVC futures of your exchange have provided China and global plastics market participants with effective risk-avoiding and investing tools and have made distinguished contributions to the stable development of China’s plastics industry. The listing of PP futures will further expand futures market’s function in serving the plastics industry and will also further enrich DCE’s futures varieties and strengthen its influence in the real economy.
Our exchange will list PP futures on the same day and hopes that both sides will continue to maintain communication with each other and achieve mutual benefits and common development after the listing of PP futures.
Finally, we sincerely wish that your exchange will make further breakthrough and transcendence in the innovation of products, technology, and service and achieve your objective of becoming a world-leading futures exchange.
Gary Anderson, Dubai Gold & Commodities Exchange
February 21, 2014
DCE’s Letter of Congratulations to DGCX
Dubai Gold & Commodities Exchange:
We are very glad to hear that the PP futures, your new product, are to be listed for trading on February 28, 2014. It is not only another innovation in the commodity futures products and business of your exchange, but also a blessing in the construction and development of the global petrochemical industry market system.
As an important variety among the five major synthetic resins, PP has a wide application field and is active in international trade. Middle East is the largest energy and chemical products export area in the world and enjoys abundant spot goods basis of petrochemical industry. And the listing of PP futures on your exchange will provide PP manufacturers and export enterprises with more hedging measures and will then promote enterprises’ stable operation and enhance enterprises’ competiveness. China is the largest PP import country in the world, and DCE has accumulated lots of experience in developing petrochemical futures products and it will list PP futures on the same day. The simultaneous listing of PP futures on the two markets will undoubtedly provide more comprehensive risk-avoiding choices for the PP manufacturing, trading, and consumption enterprises in the world and thus promote the healthy and stable development of the whole industry.
Our two sides have maintained fully communication in the process of product development and contract design of PP futures. Next, along with the listing and trading of PP futures product, we sincerely hope that both sides will carry out more comprehensive and in-depth cooperation and jointly cultivate and develop PP futures market, so as to create a good market environment and better serve the real economy.
Finally, we would like to congratulate again for your listing of PP futures and wish that you achieve immediate success in the new product and make further achievement in your future development.
Liu Xingqiang, Chairman of Dalian Commodity Exchange
February 14, 2014
