China's top securities regulator said on Friday it has approved trade of polypropylene (PP) futures contracts at the Dalian Commodity Exchange (DCE).
The exact date of the launch of the futures will be decided by the DCE, said Zhang Xiaojun, spokesman of the China Securities Regulatory Commission.
China is the largest PP consumer in the world with an average annual growth rate of more than 10 percent. In 2012, PP consumption was close to15 million tonnes, with applications in packaging, household appliances, textiles, automobiles and construction.
Domestic PP users have been pushing for PP futures to reduce market volatility and strengthen China's pricing power on the international market.
Currently, two plastic products LLDPE and PVC are traded on the DCE.