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Polypropylene ** performed well in the first month of listing
The first batch of polypropylene contracts listed in the Year of the Horse made their debut on March 27th, and the initial month of trading has shown promising results. Over the past 20 trading days, the market for polypropylene has remained active, with industrial clients showing strong participation. Prices have moved closely in line with the underlying fundamentals, and overall market operations have been stable, reflecting the effective functioning of the market mechanism.
According to the latest data, from February 28 to March 27, a total of 136,860 hands were traded, with a total turnover of 69.944 billion yuan. The average daily turnover reached 68,400 hands. In terms of open interest, the positions remained relatively stable, with an average daily position of 67,500 hands in the first month. By March 27, the open interest had increased to 72,700 lots, indicating continued interest and confidence in the market.
Since the listing, as the market continues to develop, the influence of the polypropylene market has grown steadily. The number of participants, especially corporate clients, has risen significantly. Corporate traders accounted for 12.64% of the total trading volume and 34.22% of the open interest. This shows that the participation level of corporate clients is well balanced within the broader market. Industrial players are also actively engaging in the market, with traders being the most active group among industry participants.
Market observers note that the price movement of polypropylene has been smooth during its first month of trading. On March 27, the closing price of the main 1409 contract was 10,492 yuan per ton, up 1.2% from the opening price of 10,368 yuan per ton. The current price trend is highly correlated with the spot market, and the leading role of the futures price has started to emerge. The design of the polypropylene contracts and the trading system has received positive feedback from market participants.
Galaxy Analyst Wu Heng commented, “So far, the price trend of polypropylene has closely mirrored the spot market, especially in East China, where the benchmark prices align well with the listed contracts. After one month of operation, the structure of forward-month discounted supply has largely taken shape. On March 27, the closing prices of PP1405, PP1409, and PP1501 were 10,977 yuan/ton, 10,492 yuan/ton, and 10,153 yuan/ton, respectively. These prices reflect the expected slowdown in downstream plastic industries and the increasing supply of synthetic resin raw materials.â€
Daishang Group emphasized its commitment to cultivating the polypropylene market. Before the listing, the company organized dozens of centralized training sessions, which laid a solid foundation for the active participation of industrial clients after the launch. Going forward, Daishang plans to deepen cooperation with industry organizations and companies, offering tailored or one-on-one market services and training to help businesses use the market more effectively and fully realize the functions of the polypropylene market.
It is also worth noting that the Dubai Gold and Commodity Exchange saw a first-month trading volume of 4,296 hands for polypropylene, with 226 bilateral positions on March 27. The trading activity was concentrated mainly on the 1407 contract, with a closing settlement price of $1,435 per ton.