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 2008, ZCE PTA futures traded 35,134,580 contracts and its turnover amounted to 1,222.7 billion yuan, making it the second most largest (in terms of turnover)on the ZCE after ZCE sugar futures.

China produces about one-quarters of all PTA globally and consumes about one-third.

ZCE Monthly Volume by Product.JPG


Pure Terephthalic Acid futures
Exchange Zhengzhou Commodity Exchange
Settlement Physically delivered
Contract Size 5 tons/lot
Pricing Unit 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 Electronic
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

  1. History of ZCE. Zhengzhou Commodity Exchange.
  2. Pure Terephthalic Acid Futures Contract Specs. Zhengzhou Commodity Exchange.