Total of 280 lots traded on ICIS-linked PP swaps contract - SGX

07 April 2016 06:35 Source:ICIS News

(recasts fifth paragraph for clarity)

SINGAPORE (ICIS)--A total of 280 lots were traded on the Singapore Exchange’s (SGX) ICIS-linked polypropylene (PP) flat yarn (raffia) CFR China swaps contracts on 6 April, data from the bourse showed on Thursday.

On 6 April, 280 contracts were traded for settlement in June-December 2016, and there were 320 lots of open interest, according to SGX. (please see table below)

In terms of contract size, the swaps traded on 6 April will amount to 14,000 tonnes for the June- December period. One lot of the PP swaps is set at 50 tonnes.

The SGX PP flat yarn CFR China swaps were first traded on 24 March, with 360 lots concluded for settlement in April-December 2016.

That was the first time a plastics resin traded in the derivatives space in Asia on a CFR (cost & freight) China and US dollar basis was cleared by an exchange.

The SGX on 19 January 2015 launched four ICIS-linked polyolefin swaps contracts to help market players hedge against risks.

The polyolefins swaps and futures contracts provide a more direct hedge over existing hedging instruments that are solely based on feedstocks, according to SGX.

These four contracts are for linear low density polyethylene (LLDPE) and PP flat yarn (raffia) grades, on a cost-and-freight (CFR) China and Southeast Asia basis. These contracts will be settled against the ICIS Monthly Settlement Prices (MSPs) published on the last Fridays of the contract months.

The ICIS MSPs are the monthly averages of the weekly spot price assessments published by ICIS.

ICIS’s polyolefins spot price assessments are widely used by resin producers, plastics processors and resins traders in Asia as a benchmark for contract pricing.

PP Flat Yarn (Raffia) CFR China

SWAPS / FUTURES PRICES

SWAPS

Contract Month

DSP (US$)

Prev DSP (US$)

US$ Change

% Change

T Volume (Contracts)

T+1 Volume (Contracts)

Open Interest (Contracts)

Apr-16

990.00

990.00

0.00

0.0 %

-

-

20

May-16

980.00

980.00

0.00

0.0 %

-

-

20

Jun-16

970.00

970.00

0.00

0.0 %

40

-

40

Jul-16

960.00

960.00

0.00

0.0 %

40

-

40

Aug-16

955.00

955.00

0.00

0.0 %

40

-

40

Sep-16

950.00

950.00

0.00

0.0 %

40

-

40

Oct-16

945.00

945.00

0.00

0.0 %

40

-

40

Nov-16

945.00

945.00

0.00

0.0 %

40

-

40

Dec-16

945.00

945.00

0.00

0.0 %

40

-

40

Jan-17

945.00

945.00

0.00

0.0 %

-

-

-

Feb-17

945.00

945.00

0.00

0.0 %

-

-

-

Mar-17

945.00

945.00

0.00

0.0 %

-

-

-

Total

280

-

320

Source: Singapore Exchange

By Nurluqman Suratman