Here’s Another Way to Bet on Plastics Prices

WEB EXCLUSIVE: In May, the New York Mercantile Exchange (NYMEX) launched two new plastics resin futures contracts. They are for blow molding grade HDPE (0.35 MI, 0.953 density) and film-grade butene LLDPE (1.0 MI, 0.92 density, barefoot or medium additive level). The contract quantity is for 47,000 lb and contracts can be traded as far as 15 months forward. These contracts are not for physical delivery of resin, but are pure bets on price moves. Contract prices are based on price indices published by PetroChem Wire, a daily online newsletter of petrochemical market information.
Plastics futures contracts involving physical delivery of resin already are offered by two sources: The London Metal Exchange (LME) introduced the first contracts for injection molding-grade PP homopolymer and blown film-grade butene LLDPE in 2005. These were followed in late 2008 by contracts for HDPE blow molding grade and PP homopolymer injection grade traded through the Chicago Mercantile Exchange (CME), owned along with NYMEX by CME Group.
(800) 331-3332 • cmegroup.com
(720) 480-6288 • petrochemwire.com
+44 20 7264 5555 • lme.com