$6.96bn of PVC futures traded on first day at DCE in China

26 May 2009 05:12  [Source: ICIS news]

SINGAPORE (ICIS news)--More than 146,000 polyvinyl chloride (PVC) futures contracts worth yuan (CNY)47.5b ($6.96b) changed hands on the first day of trading in China, data from the Dalian Commodity Exchange (DCE) showed on Tuesday.

September delivery contracts, which opened at CNY6,300/tonne, gained as much as CNY330/tonne before declining to close at CNY6490/tonne on Monday.

Participation in the PVC futures market appeared strong so far with market players from the Zhejiang province the most active, although it was still too early to tell if such enthusiasm would last, a PVC trader said.

Securities firms from the eastern Zhejiang province were the most active on the first day of trading and were among the top holders of open positions by the close of trading, according to a rankings list released by the DCE. Funds from southern China were also very active.

Market players said this was not surprising because of Zhejiang province’s financial strengths. China’s PVC demand is highest in eastern and southern provinces.

The first transaction was concluded between Shanghai Chlor-Alkali, the biggest PVC producer in the country, and Dalian Fortune Futures, a securities firm based in the eastern Liaoning province, the DCE said on its website.

($1 = CNY6.82)

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By: Ng Hun Wei
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