PP futures launched in Dubai

The Dubai Gold and Commodities Exchange (DGCX) along with China’s Dalian Commodity Exchange (DCE) held simultaneous launch of their respective polypropylene (PP) futures contracts on 28 February 2014. The concurrent launch of both the Exchanges’ contracts is designed to raise substantial liquidity for global trading of the products. DGCX and DCE have been working closely to develop plastics contracts following the signing of a memorandum of understanding (MoU) in 2012. DGCX’s new polypropylene futures contract, the first ever in the MENA region, will create a transparent market and new pricing benchmark for the region. The contract is sized at 5 metric tonnes (MT), with the contract price quoted in US dollars per MT. Physical delivery will ensure price convergence between the futures market and the physical market. DGCX has approved leading warehouses in Jebel Ali (JAFZA) and Dubai World Central (DWC) Free Zones for the delivery of the product.
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