Dubai Gold and Commodities Exchange (DGCX) announced early this week that it will launch the MENA region’s first plastics futures contract on 28 February 2014. The product to be traded is polypropylene, for which the exchange says global production exceeds 65mn tons/year. GCC polypropylene production capacity was 8mn t/y at the end of 2012.
The contract size will be 5 metric tons, with prices in $/ton. Physical delivery will be at warehouses in the Jebel Ali and Dubai World Central free zones. DGCX says physical delivery will ensure price convergence between the futures and physical markets. (CONTINUED - 276 WORDS)