Dalian Bourse Cleared to Trade PVC Futures      

China Securities Regulatory Commission (CSRC) on April 15th gave approval to the Dalian Commodity Exchange to trade the PVC (polyvinyl chloride) futures contracts.
   PVC is one of the plastics with the largest consumption volume in China. The consumption of PVC in China exceeded 9 million tons since 2006, after polyethylene and polypropylene.
   The trade of PVC contracts would add to a listing of futures products in the synthetic resins chain in China, allowing the futures markets to better serve the national economy, the CSRC said.
   Also, the new contracts would help create a price formation system with which PVC makers could better arrange operation while the government could make macro-adjusting measures timely and precisely to ensure market balance of PVC supply and demand.
   The third, a futures contract would give PVC producers, traders and users a high-efficient and low-cost hedge tool against the price gyrations, making them more competitive.
   The Dalian exchange started trading for linear low density polyethylene, or LLDPE on July 31st, 2007 and that of palm oil on October 29th the same year. (CCR2007 No. 23, No. 32)