06 June 2007 11:58 [Source: ICIS news]
LONDON (ICIS news)--The Dubai Gold and Commodities Exchange (DGCX) on Wednesday said it expected to launch plastics future contracts for four products in the third quarter to meet demand in the booming Middle East plastics sector.
In co-ordination with the plastics division at Dubai Multi Commodities Centre (DMCC), the exchange said it would launch futures contracts for low density polyethylene (LPDE), linear low density polyethylene (LLDPE), high density polyethylene (HDPE) and polypropylene (PP).
For each grade there would be three regional contracts - northeast Asia, southeast Asia and the Middle East – based in ?xml:namespace>
“Recent market studies show that the
The proposed new contracts would be largely paper settled, but they would also allow for physical delivery at various locations.
The DMCC was confident the petrochemicals boom had created sufficient demand for the futures launch.
“We have been extremely encouraged by the response and support from the petrochemical and plastics industry as a whole and from closely associated financial establishments,” said DMCC associate director for commodities James Bernard.
“Since announcing its intentions in January to add plastics to its commodities portfolio, DMCC has received enormous interest from the industry and has made great progress in a short period of time,” he added.
The London Metal Exchange (LME) launched futures contracts for PP and LLDPE in May 2005. Later this month, the LME plans to launch separate contracts for Europe, North America and
Bernard said the DGCX would not be in competition with the regional LME contracts as it was concentrating on the
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