This is a huge subject, one that this blog will need to keep revisiting – and if you tell us we’ve got it wrong, we’ll always listen and respond. For what it’s worth, the article below might give you some food for thought. The influence of crude we are talking about below is different from […]
Asian Chemical Connections
A fresh vote of confidence for the DCE
By Malini Hariharan (Malini is now joint blogger for Asian Chemical Connections) It helps to have a commodity bull on your side and that’s just what the Dalian Commodity Exchange (DCE) has succeeded in doing. Jim Rogers, the noted investment guru, will be a senior advisor to the exchange. Jim Rogers is, as always, positive […]
China lends guiding hand to futures markets
The Chinese government appears to have an important objective to achieve while promoting commodity futures trading in the country? A report in today’s Wall Street Journal says that the government is positioning its futures markets in setting world prices for metal, energy and farm commodities. Jiang Yang, chief futures industry policy maker and assistant chairman […]
Challenges for chemicals trading in Q4
The views of two Singapore-based chemicals traders explain some of the fundamental shifts in production, logistics and demand since the economic crisis began. “I have done reasonable business this year and made quite good returns, but volumes are way down,” said the first of these two traders, who deals in toluene and mixed xylenes (MX). “Cracker-based […]
Dalian Swings In Favour Of The Buyers
Polyolefin producers doing RMB business in China were delighted when price increases on the Dalian Commodity Exchange linear-low density polyethylene (LLDPE) futures contract started leading the physical market on the way up. “We used the exchange to justify charging higher prices for real deals because in the heady days of February-early August the general trend […]
PTA futures growing in influence?
Source of picture: 1st-commoditytrading.us It’s only one comment from one consultant, but this is what he said today about the growing role of the Zhenghou Commodity Exchange‘s purified terephthalic acid (PTA) futures contract. “PTA futures have been exerting a huge impact on spot pricing starting 2H July. “We haven’t seen any increase in physical demand […]
Dalian: A Whole New Ball Game?
Source of picture: waittilnextcentury.blogspot Back to an old theme, the Dalian Commodity Exchange, this story from ICIS news talks of how physical cargoes are being bought and then sold at a price fixed now for November delivery. At the time of writing this was realising a $169/tonne profit. This could be old news, but I […]
Is Dalian setting the markets?
Make your own mind up about the role of the Dalian Commodity Exchange linear-low density polyethylene (LLDPE) and polyvinyl chloride (PVC) futures contracts from the interviews below. The first quote is from Sinopec – from an ICIS news story. There then follows my interviews with a major Asian producer and a consultant based in Asia. […]
Credit Expansion Linked To Dalian Boom?
Source of Picture: http://blogs.suntimes.com/ebert/ We have just started doing our research and so more details later – but see attached this Excel spreadsheet – lendingVDalianOI.xls It compares the increase in lending from China’s banks with the amount of open interest in the Dalian Commodity Exchange’s linear-low density polyethylene (LLDPE) futures contracts. Volume traded on the […]
Dalian LLDPE futures explained?
My last blog entry quoted a North American industry source who was concerned over the potential for physical delivery on the Dalian futures exchange to flood the real market and send prices crashing. In my ignorance of how futures markets works, and as a typicaql semi-numerate journalist, I therefore asked a colleague with a futures/mathematical […]
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