On January 17, the China Securities Regulatory Commission (CSRC) announced it had approved trade of polypropylene (PP) futures contracts at the Dalian Commodity Exchange (DCE) in northeast China.

The exact date of the launch of the futures will be decided by the exchange, said CSRC spokesman Zhang Xiaojun.

China is the largest PP consumer in the world with an average annual growth rate of more than 10 percent. In 2012, PP consumption was close to 15 million tons, with applications in packaging, household appliances, textiles, automobiles and construction.

Domestic PP users have been pushing for PP futures to reduce market volatility and strengthen China's pricing power in the international market.

Currently, two plastic products, LLDPE and PVC, are traded on the Dalian exchange.