ZCE Pure Terephthalic Acid
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ZCE pure terephthalic acid (PTA) futures trade on the Zhengzhou Commodity Exchange (ZCE). They were launched on December 18, 2006[1].
Each ZCE PTA futures contract represents 5 tons of deliverable grade PTA, which meets SH/T 1612.1-2005 Industrial PTA Standard, and there are no substitutions at differentials that are also good for delivery, while its delivery date is set as the twelfth trading day of the delivery month[2].
Each ZCE PTA futures contract is subject to a margin rate equivalent to 6 percent of contract value (e.g., 2601 yuan = 8670 yuan [TA807 last price on May 22, 2008] x 5 [tons/contract] x 6 percent) as well as a trading fee of 4 yuan (RMB) / contract.
PTA is transformed into polyester, which ends up as clothing and plastic bottles. In 2007, the first full year for ZCE PTA futures, it traded 9,921,650 contracts and its turnover amounted to 387.2 billion yuan.
China produces about one-quarters of all PTA globally and consumes about one-third.
| Pure Terephthalic Acid futures | ||
|---|---|---|
| Exchange | Zhengzhou Commodity Exchange | |
| Settlement | Physically delivered | |
| Trade Unit | 5 tons/lot | |
| Point Value | 5 yuan (RMB) | |
| Tick Value | 10 yuan (RMB) | |
| Contract Months | January to December | |
| Last Trading Day | The tenth business day of the delivery month | |
| Note: This contract is electronic ONLY -- no open outcry | ||
| No Open Outcry | No Electronic Market | |
| Trading Hours | N/A | 9:00-11:30 a.m. 1:30-3:00 p.m. |
| Ticker Symbol | N/A | TA |
| Price Limits | N/A | 4% above or below the previous trading day's settlement price |
References
- ↑ History of ZCE. Zhengzhou Commodity Exchange. Retrieved on May 23, 2008.
- ↑ Pure Terephthalic Acid Futures Contract Specs. Zhengzhou Commodity Exchange. Retrieved on May 23, 2008.
