- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:28 06:42 12:35 15:52 18:22 19:36
The Dubai Gold and Commodities Exchange (DGCX) and Dalian Commodity Exchange (DCE) on Wednesday announced the simultaneous launch of their respective polypropylene futures contracts at the Middle East Plastics Seminar in Dubai.
The concurrent launch of both the Exchanges’ contracts is designed to raise substantial liquidity for global trading of the products. The contracts will go live on February 28, 2014.
DGCX and DCE have been working closely to develop plastics contracts following the signing of a memorandum of understanding (MoU) in 2012.
DGCX’s new polypropylene futures contract, the first ever in the MENA region, will create a transparent market and new pricing benchmark for the region. The contract is sized at 5 metric tons (MT), with the contract price quoted in US dollars per MT. Physical delivery will ensure price convergence between the futures market and the physical market. DGCX has approved leading warehouses in Jebel Ali (Jafza) and Dubai World Central (DWC) Free Zones for the delivery of the product.
Gary Anderson, CEO of DGCX, said: “The GCC region produces more than 50 million tonnes of plastics a year with a significant percentage being exported to the Far East. Market participants currently do not have a means for effectively hedging against price fluctuations. The listing of our polypropylene futures contract will fill this gap. We believe this contract will be a key risk management tool for all participants in the plastics supply chain, including producers, traders, convertors and end-users. ”
“We have timed our contract launch with that of DCE to maximise liquidity and provide trading opportunities between the two contracts. There are a large number of plastics producers in this region while China is the largest consumer of plastics in the world. I would like to congratulate Dalian Commodity Exchange for the launch of their polypropylene futures contract,” added Anderson.
Li Zhengqiang, CEO of DCE, said: “Though China is the largest importer of polypropylene, participants in the market have been exposed to significant price risk for several decades. We have been working with DGCX to structure a similar plastics contract that helps the plastics industry to hedge their exposure effectively. We strongly believe that listing both our contracts on the same day will create significant liquidity and trading opportunities for plastics traders across the world.”
“It is not often that you see two Exchanges come together to work on a similar product and list it at the same time. I would like to congratulate DGCX on the launch of their polypropylene futures contract and I look forward to the synergies between the two contracts bringing substantial benefits to the plastics market,” added Zhengqiang.
The DGCX Plastic futures contract will trade from 7:00AM to 1:00PM Dubai Time, which is 11:00AM to 5:00PM China Time.
The DCE Plastic futures contract will trade from 5:00AM to 7:30AM and 9:30AM to 11:00AM, which is 9:00AM to 11:30AM and 1:30PM to 3:00PM China Time.
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