In the past two years, the trading volume of China's petrochemical futures varieties has grown rapidly. Among them, LLDPE has become the fastest-growing futures variety in the country, with a growth rate of 33 times last year and 47 times in the first five months of this year. The PVC futures market that was just listed in May this year has exceeded the expectation.
Since 2006, China has successively listed three petrochemical futures such as refined terephthalic acid (PTA), linear low-density polyethylene (LLDPE) and polyvinyl chloride (PVC), and achieved breakthroughs from scratch. Peng Junheng said at the 2009 Plastics Industry Conference that some of the large spot companies, such as Sinochem, Blonde Tech, Chlor-Alkali Chemical, Xinjiang Tianye, and Elite, have participated in or are preparing to participate in the LLDPE and PVC marketed on the Dalian Commodity Exchange. Petrochemical varieties futures trading.
Zhao Jungui, vice president of the China Petroleum and Chemical Industry Association, said that at present, due to the dual impact of the international financial crisis and the industry development cycle, China's plastics industry is in a new stage of restructuring and industrial upgrading. For increasingly fierce market competition, learning to use futures means is of great significance in raising the industry's operating level and improving the ability of companies to cope with risks.
He said that the continuous introduction of petrochemical-related futures varieties in the futures market is due to the existence of market demand. In particular, oil prices have fluctuate in recent years, and the related companies in the upstream and downstream of the oil industry chain have strong demand for hedging. The emergence of petrochemical futures varieties not only provides relatively effective hedging tools for related companies, but also provides new ways for companies to achieve steady development. At the same time, they also broaden the scope of business services and vision for futures exchanges and futures companies. The petrochemical association, as an industry organization, has also found a new way and a new platform for petrochemical companies to provide better services.
The 2009 Plastics Industry Conference was co-sponsored by the Dalian Commodity Exchange and the China Petroleum and Chemical Industry Association. According to statistics of the Secretariat of the General Assembly, representatives from the plastics industry enterprises accounted for 60% of all participants, and the scale of the conference was expanded from 400 to 800. “This shows that with the continuous introduction and steady operation of new petrochemical futures, more and more petrochemical-related companies have begun to understand and pay attention to the futures market. This is a welcome change,” said Zhao Jungui.
It is understood that, in addition to its commitment to the construction of existing varieties such as LLDPE and PVC, Dashang is also investigating other types of futures related to the petrochemical industry, such as PP and chemical fertilizers. According to relevant officials from the Daicom Group, China’s plastic futures market has become the most influential plastic futures market in the world.

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