Plastics futures to launch on DGCX
The Dubai Gold and Commodities Exchange (DGCX) will launch plastics futures contracts on February 5.
The region-specific contracts for the Middle East and South East Asia will be offered on Linear Low Density Polyethylene (LLDPE) and Polypropylene (PP).
DGCX CEO Malcolm Wall Morris says that recent price turbulence in the plastics market has spurred the launch of the two contracts. "Price volatility in recent months has put pressure on profitability across the plastics supply chain and downstream firms are looking for innovative ways to minimise this impact," he says.
The petrochemicals sector and its downstream industries are major drivers of economic growth in the Gulf region, according to Morris. "For the first time, plastic futures prices will incorporate local costs and regional demand-supply differences, enabling convergence of futures prices with those of the physical market," he says.
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