Four months after it launch of futures trading in polymers in India, NCDEX seems to have met with little success. The daily average volumes in PVC has been ruling at just around Rs 50-60 lakh as against the target of close to Rs 100 crore.
Till date there has been no trading in Linear Low Density Polyethylene (LLDPE) and Polypropylene (PP). The commodity exchange is reported to have said that the speculators have stayed away and that is the biggest handicap in discovering polymer prices. Speculators play a critical role in price discovery, hence the commodity exchange now wants to spread awareness among investors and speculators to make sure futures trading in polymers picks up in the near term.
However the disappointing start in polymers has not stopped new products to hit the markets, soon Indian manufacturing sector which is increasingly turning to coal imports will be able to keep their fires burning by hedging their risks.