Problems and Suggestions of Polypropylene Futures Market in China

Since its successful launch in 2014 on the Dalian Commodity Exchange (DCE), the polypropylene futures market has been operating steadily for ten years. Over the past decade, polypropylene futures have maintained stable operation, gradually exerted their functions and increased market recognition and participation, effectively meeting the needs of relevant industry enterprises to cope with price risks and successfully achieving high-quality development. However, there are still many unresolved issues, one of which is the most prominent problem caused by the weak liquidity of the polypropylene futures market to market participants. This paper will review the polypropylene spot market from two aspects: the size of the polypropylene spot market and the trading volume of the futures market. This paper highlights the existing issues of weak liquidity, small market size, and limited market participation in the polypropylene futures market. It puts forward corresponding countermeasures to address these challenges. The study contributes to the healthy and sustainable development of the polypropylene futures market.