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Dubai Gold and Commodities Exchange (DGCX) has issued early data for trading under its polypropylene (PP) futures contract, which show a slide in volumes since start-up on 28 February.
On the first day, 202 contracts were concluded – equivalent to 1,010 tons of PP – with a peak of 245 deals on 4 March. Yet volumes have since declined, averaging 12 transactions per day in May.
GCC firms last year made 12.4% of the 65.6mn tons of PP produced worldwide (MEES, 18 April). DGCX’s aim in launching PP trading was to allow “market participants in the plastics supply chain, including producers, traders, convertors and end-users, to hedge their polymer price risk.” The contract size is 5 metric tons, with physical delivery at warehouses in Jebel Ali and Dubai. (CONTINUED - 266 WORDS)