China launches benzene futures

China's Dalian Commodity Exchange (DCE) officially launched benzene futures on Tuesday, with benzene options to be launched later in the day.

The trading of futures and options for benzene, an important chemical raw material, has been green-lighted by the China Securities Regulatory Commission (CSRC) on June 20.

At 9:00 Tuesday, benzene futures commenced trading on the DCE.

The first batch of listed contracts includes four varieties, with a trading unit of 30 tonnes per lot and a delivery unit of 30 tonnes, adopting physical delivery.

Experts say the the launch of benzene futures and options will furnish the industry with effective risk management tools and enhance China's say in pricing at global benzene market.

"The launch of benzene futures and options will fill the gap in risk management tools for raw materials in the aromatics industrial chain. Together with the already listed styrene futures and options, they will form a comprehensive hedging toolkit, more efficiently helping enterprises on the industrial chain to stabilize profits and maintain steady production and operations," said Yan Lin, senior manager of the DCE's Commodity Department.

Benzene is a crucial organic chemical raw material, closely linked to national economic development and public livelihoods.

Its upstream supply relies on two major energy sources - oil and coal, and its downstream applications span three key industries: synthetic resins, synthetic fibers, and synthetic rubber.

It is widely used in textiles, home appliances, tires, dyes, and other products.

China is the world's largest producer and consumer of benzene.

In 2024, China's benzene output reached 25.13 million tonnes, with apparent consumption hitting 29.26 million tonnes.

Its market scale has exceeded 208.6 billion yuan (about 29 billion U.S. dollars).

China launches benzene futures

China's bulk commodity price index posted solid year-on-year growth in February, signaling stable market conditions and resilient underlying momentum despite a slight monthly dip due to the Spring Festival holiday, industry data showed on Wednesday.

The index stood at 124.9 points in February, down 0.4 percent from January but up 10.9 percent compared with the same period last year, according to the China Federation of Logistics and Purchasing (CFLP).

Of the 50 major bulk commodities monitored by the federation, 24 registered month-on-month price increases. Oxidized praseodymium neodymium posted the strongest gain, rising 24.3 percent from January, followed by styrene-butadiene rubber (up 5.4 percent) and polyvinyl chloride (up 3.5 percent).

Analysts attribute the slight monthly decline to seasonal factors, with the holiday period temporarily dampening activity. However, the robust year-on-year growth suggests the market's positive trajectory and internal drivers remain intact.

As industries resume full operations after the holiday and investment and consumption demand pick up, the market is expected to gradually recover and stabilize in the coming months, the CFLP said.

China's bulk commodity price index up 10.9 pct y-o-y in Feb