Dalian Commodity Exchange: The China Securities Regulatory Commission Approved The Trading Of LLDPE

China approved the trading of Linear Low density Polyethylene (a raw material in plastics) futures in Dalian Commodity Exchange, the China Securities Regulatory Commission said on its Web site today. This would be the third futures product launched in China's commodity market this year after zinc and rapeseed oil.

The Dalian exchange has finished the preparation work related to the futures contract, and may begin trading the product at the end of this month, the commission said.

The standard for the LLDPE, as the product is commonly known, is original color, cylindrical or oval in shape. In 2005, China produced 1.88 million tons of LLDPE and imported 1.7 million tons, both among the biggest in the world. About 76 percent of LLDPE consumed was used in producing plastic sheets, a key material supporting agricultural production. At the moment, China imports 48 percent of its required LLDPE, and domestic prices are highly affected by the global market.