First region-specific plastics futures in Dubai

Developing its portfolio of innovative products, the Dubai Gold & Commodities Exchange (DGCX) announced the launch of the world''s first region-specific plastic futures on 5 February 2009. DGCX will offer plastic futures contracts on Linear Low Density Polyethylene (LLDPE) and Polypropylene (PP), creating a new and transparent pricing mechanism specific to two regions the Middle East and Southeast Asia. Ahead of the launch, DGCX has approved leading warehouses and Delivery Point Operators. For the first time, plastic futures prices will incorporate local costs and regional demand-supply differences, enabling convergence of futures prices with those of the physical market, Malcolm Wall Morris, Chief Executive Officer, DGCX said. The petrochemical sector and its downstream industries are key drivers of economic growth in the Gulf region. Capacity expansion, easy access to feedstock and proximity to the highgrowth Asian markets have ensured that the Middle East is the hub of global petrochemical trade. While price volatility in recent months has put pressure on profitability across the plastics supply chain and downstream firms the DGCX is looking for innovative ways to minimize this impact. Initial feedback from market participants in the Middle East and Asia has been very encouraging, and given the significant size and scale of the global petrochemical trade, plastic futures are a key addition to the exchange s product portfolio.Air Force 1