subject: The International Plastics Market Will Appear "china Price" [print this page] Recently, DCE project manager said in discussion of the research market and member of the Northeast areas, DCE is now actively promoting listing of the plastic futures, fought for the transaction and listing in the earlier second half of the year. It has been revealed that the plastics futures traded on DCE this year should be no suspense. The plastics futures will become the Chinese market a third of new varieties, the international plastics market will appear the "China price".
It is understood that the contract marked of DCE plastics futures is linear low density polyethylene (LLDPE). In petrochemical products it has a wide range of uses, almost penetrated into all the traditional polyethylene applications, include the film, molding, pipe, wire and cable and so on.
China is the world's largest polyethylene importer and second largest consumer, in 2005, China's annual output of polyethylene achieved 5.29 million tons, imports reached 5.26 million tons. The production of linear low density polyethylene (LLDPE) was 185 million tons, 1.7 million tons of imports, total consumption reached 3.55 million tons, 48% dependence on foreign. Market-oriented and Internationalization degree of China LLDPE is very high, the price is entirely determined by market supply, and close linkage with international market prices. The LLDPE market has no policy control, no import quota restriction, tariffs reduced to 6.5% in 2005 a one-time. Trade in the domestic spot and import trade of LLDPE is active, a large number of traders and manufacturers, the market is very competitive. The reasons for China's own supply and demand, as well as the international market price changes impact, LLDPE price fluctuations, and enterprises business exposed to market risk, they expected for listing of LLDPE futures.
Market participants said they were very optimistic about the market prospects after LLDPE listing. Dr. Gao Yang, associate professor of Beijing Technology and Business University introduced, June 2005, the London Metal Exchange (LME) listed and trading the LLDPE synthetic resin futures varieties, attracted many international petrochemical production, trade enterprises concern, and gradually began to participate in the trading. China is the world's important polyethylene production and consuming country, the rapid growth of annual consumption. It has become the world's most important polyethylene futures market of potential and conditions. After LLDPE futures listing, the international market is expected to form the "China price", making related enterprises in China to take an active part in the international competition. At the same time, LLDPE futures market transaction will also enable the DCE to complete the change in agricultural futures to integrated commodity futures.
