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PVC futures are getting a second chance in India, with the NCDEX (National Commodities and Derivative Exchange) re-launching a polyvinyl chloride contract on April 4, after abandoning its original attempt to create a vinyls market in 2007. Futures contracts expiring in May, June, July and August of this year were made available for trading on April 4 at the NCDEX, with an established trading unit of 5000 tonnes.

Tony Deligio

April 4, 2011

1 Min Read
Indian exchange re-launches PVC futures contract

NCDEX said that brokers registered with the exchange can trade up to 20,000 tonnes, with individuals limited to 5000 tonnes. The exchange said that prices will be settled based on the last spot price of the day as polled by the exchange on the final trading day of the contract.

NCDEX's PVC contract will be the second one on the market. China's Dalian Commodity Exchange (DCE) launched its own PVC futures contract in May 2009. That contract has generated strong interest, with an average daily volume of 178,000 contracts, and average daily open interest of 121,700 contracts. In 11 months from May 2009, when PVC was first listed, to April 2010, 41 million PVC contracts were traded totaling Yuan 1.5 trillion in turnover.

The global installed capacity for PVC production stands at 47.5 million tons/yr, according to a January 2011 report from Research and Markets. That figure is expected to grow to 59.1 million tons/yr in 2020. Global PVC production from 2000 through 2009 grew from 24.7 million tons to 32.3 million tons. 

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