The Dubai Gold & Commodities Exchange (DGCX; Dubai, U.A.E.) says it will launch a portfolio of four polymer future contract products to allow price hedging by the end of next month, if all goes according to plan.
The DGCX says, The launch is seen as key to meeting the demand for an efficient and transparent pricing system specific to the plastics sector in the Middle East, and will highlight the GCCs [Gulf Cooperation Councils] central role in the global plastics and petrochemical industry, says David Rutledge, CEO of DGCX. Development of the DGCXs plastics contracts is coordinated by the plastics division at Dubai Multi Commodities Center (DMCC). The contracts are expected to concentrate on plastics contracts in the Middle East, North Africa, and Asia.
Covered in the futures contracts are low density, high density and linear low density polyethylene as well as polypropylene. For each grade there will be three regional contracts: Northeast Asia (Korea), Southeast Asia (both Singapore and Malaysia) and the Middle East, which will be centered in Dubai. The DGCX is considering other regions for deliveries in the future.[email protected]