Date: January 18
Source: China Securities Journal

　　The Dalian Commodity Exchange (DCE) was approved of polypropylene (PP) futures trading, with the time for launch of the futures contract subject to further notice upon readiness of the DCE, according to a notice of the China Securities Regulatory Commission (CSRC) on January 17. In recent years, frequent and dramatic price fluctuations have been seen in trading of polypropylene, with the price volatility of 33%, 29% and 18% in 2010, 2011 and 2012, respectively. As a result, commodity companies have a strong demand for hedging.
　　According to the CSRC, the launch of polypropylene futures could help improve the price formation mechanism, and provide hedging tools for related companies. It could also facilitate the healthy development of the industry with a fuller range of chemicals futures products. So far, China has launched such products as purified terephthalic acid (PTA), linear low density polyethylene (LLDPE) and polyvinyl chloride (PVC), in its initial system of chemical futures. Next, the DCE will improve its regulatory system and risk prevention measures, and develop response plans to ensure the smooth launch of polypropylene futures and its stable operation.