Recently, the China Securities Regulatory Commission (CSRC) officially reply to Dalian Commodity Exchange (DCE) for the preminary approval of the ethylene glycol (EG) futures. It represents a further step toward the official listing and trading of the EG futures.
According to the sources, China is the world’s largest EG consumer. In 2015 China’s EG output totaled 3.916 million tonnes, with 8.772 million tonnes imported and the apparent consumption reaching about 12.667 million tonnes. Measured by the price range in 2015, the size of the spot market amounted to RMB 100 billion. The data indicate that from 2010 to 2015 the average annual fluctuations of EG price stood at 50%, showing fierce volatility. The industry is strongly calling for the EG futures.
Based on the demand of the market, since 2010, DCE has been tracking and studying the EG product. At present, the contract specification and rules has been drafted.
As early as in 2007, DCE listed the LLDPE futures, China’s first chemical futures product, successively followed by the PVC and PP futures. It now covers the top three of the five major general synthetic resin products.
Like the LLDPE, PP and PVC futures listed on DCE, the EG is also an ethylene derivative, and boasts good foundation of clients on the futures market as the LLDPE and PP producing and trading companies also operate the EG products.
