On March 17, Dalian Commodity Exchange (DCE) released a notice on the implementation of registered brand system for the delivery of PVC products, and amended and formulated related business rules and supporting management measures. DCE also announced the first batch of registered brands and inspection-free brand. The move was expected to make the futures market more fit with the trading habits of spot PVC goods, make the futures price more representative, and enhance the vitality of PVC products and the market function.
DCE amended relevant business rules including the “Detailed Delivery Rules of Dalian Commodity Exchange” and the “Management Measures of Dalian Commodity Exchange for Standard Warehouse Receipt of No. 1 Soybeans, No. 2 Soybeans, Corn, LLDPE, PVC, Fiberboard and PP”. It also formulated the “DCE Management Measures on the Delivery of Registered Brand PVC” according to the business rules. Such systems will be implemented from the V1604 contract.
According to the amended rules, PVC products to be delivered should be the registered delivery brand commodities produced by producers registered on DCE, and the registered delivery brands complying with the conditions set by DCE could apply to become inspection-free brands. Among them, the registered brand goods still need to go through examination before warehouse receipt registration, while inspection-free brand goods could be exempted from quality examination when goods owners can provide the original copy of the product quality certificate of the producer and other documents designated by DCE upon entering the warehouse. To protect the market order, the rules added examination procedure for dispute over inspection-free goods and detailed the related system arrangements for the settlement of dispute.
A total of 11 brands, including Yihua of Hubei Yihua Chemical Industry Co., Ltd., have become the registered PVC brands, while Yinglite of Ningxia Yinglite Chemical Industry Co., Ltd. has become the inspection-free brand. DCE will make timely adjustments to the registered brands and inspection-free brand according to market development.
