Synthetic rubber futures and options registration approved

On July 14, the Shanghai Futures Exchange (referred to as the Shanghai Futures Exchange) announced that the China Securities Regulatory Commission has approved the registration of its synthetic rubber futures and options, requiring its exchange to make various preparations to protect synthetic rubber futures and options. smooth launch and robust operation.

The Shanghai Futures Exchange stated that the launch of the world's first synthetic rubber futures and options with butadiene rubber as the underlying commodity will serve the construction of a unified national market, promote the improvement of the market-oriented pricing system, and improve the competitiveness and price of my country's synthetic rubber industry Influence matters.

my country is the world's largest producer, consumer and importer of synthetic rubber. In 2023, the output and apparent consumption of major synthetic rubber will reach 4.842 million tons and 5.454 million tons respectively, accounting for 23% and 35% of the world respectively . Based on the average price of 13,200 yuan/ton in 2023, the scale of my country's main synthetic rubber consumption market is about 72 billion yuan. Among the eight major types of synthetic rubber, butadiene rubber is the second largest type of synthetic rubber and is mainly used in the tire industry. In recent years, affected by factors such as the continuous release of industrial capacity, changes in supply and demand, and the international political and economic environment, the price of the synthetic rubber spot market has fluctuated frequently, and the demand for risk management has become increasingly strong.

Since the SHFE’s natural rubber futures were listed in 1993, the market has been running smoothly and its functions have been effectively played. Rubber options provide an effective tool for trade pricing and risk management of my country's industrial chain enterprises. Against this background, SHFE conducted in-depth research, extensively listened to the opinions and suggestions of relevant ministries, industry associations, upstream and downstream enterprises in the industrial chain, etc., prudently and scientifically designed contract rules, and actively and steadily promoted the listing of synthetic rubber futures and options.

The SHFE stated that the next step will be to solidly and comprehensively promote relevant listing preparations, further strengthen market supervision and risk prevention, increase market training and investor education, and ensure the stable listing and stable operation of synthetic rubber futures and options. (Chen Qide)