|Dubai set to launch plastics futures contracts in first for Middle East
DUBAI: Dubai Gold & Commodities Exchange, the United Arab Emirates-based commodities derivatives market, said yesterday it would launch the Middle East’s first plastics futures contracts this year.
“We have been busy consulting widely with the industry in the development of these contracts and they are now finalised,” DGCX associate director for commodities, James Bernard, said in an emailed statement.
The contracts will be traded on the DGCX, which is 51% owned by government-owned Dubai Multi Commodities Center.
DGCX plans to launch a total of 12 plastics contracts covering four products – polypropylene, or PP, and three polyethylene, or PE, grades – in three regions, the Middle East, northeast Asia and southeast Asia.
“We will initially launch PP and linear low density PE, or LLDPE, for the Middle East and southeast Asia,” according to the statement.
The contracts will also be launched for northeast Asia, with low density PE, or LDPE, and high density PE, or HDPE, for all three region to follow later. The futures were initially due to be launched in the beginning of the year.
“We have had some delays but mainly due to the fact that we have received growing interest and various companies have been and are in the process of joining our exchange as well as setting up operations,” Bernard said.