NCDEX to launch futures trading in PVC from Monday
The country's second leading commodity bourse NCDEX will launch futures trading in Polyvinyl chloride (PVC), a thermoplastic polymer, from Monday benefiting cable-to-construction industries.business Updated: Apr 03, 2011 12:43 IST
The country's second leading commodity bourse NCDEX will launch futures trading in Polyvinyl chloride (PVC), a thermoplastic polymer, from Monday benefiting cable-to-construction industries.
It has also decided to relaunch Brent crude oil futures with modified contract specification, the NCDEX circular said.
"Futures contracts expiring in May, June, July and August of 2011 in PVC would be available for trading from April 4," the exchange said.
Members (brokers) registered with the exchange are allowed to trade up to 20,000 tonnes, while that of individual can trade up to 5,000 tonnes, it said.
The unit of trading would be five tonnes and prices will be settled based on the last spot price of the day as polled by the Exchange on the last trading day of the contract, it added.
NCDEX had launched PVC futures contracts in 2007. The contract, however, could not succeed due to lack of awareness.
Even the leading commodity bourse MCX had offered a similar contract on its platform in 2006, but could not garner volumes.
"Now, the market has broadened with increased imports of PVC into the country. There are many participants who will benefit from the futures market," NCDEX chief business officer Vijay Kumar said.
Echoing a similar view, an analyst from brokerage firm SMC Global said, "There is monopoly in the domestic PVC market. The futures market will provide an hedging platform for many participants including importers."
The futures trade in PVC would help discover prices for domestic users like shoe to kitheware industry, he added.
PVC, which is the third most widely produced plastic, after polyethylene and polypropylene, is used in various industries.
For instance, it is used for making household sewerage pipes, leather-like clothing material, electric wires and also in the cement industry.