(Adopted at the 19th meeting of the 8th Board of Governors on October 15, 2024; applicable to PF2510 and later contracts, effective as of the listing of PF2510.)

Chapter 1 General Provisions

Article 1 These Detailed Rules are made in accordance with the Trading Rules of Zhengzhou Commodity Exchange and the polyester staple fiber (“polyester fiber”) futures (“PF”) contract to regulate PF-related activities on the Zhengzhou Commodity Exchange (the “Exchange”).

Article 2 The Exchange, Members, clients, delivery warehouses, factory warehouses, Designated Quality Inspection Agencies, and other participants of the futures market shall comply with these Detailed Rules.

Chapter 2 Trading

Article 3 PF contract has a contract size of 5 metric tons/lot.

Article 4 PF contract has a price quotation of Chinese Yuan (RMB)/metric ton.

Article 5 PF contract has a minimum price fluctuation of 2 yuan/metric ton.

Article 6 PF contract has the following delivery months: every month from January to December.

Article 7 PF contract has a minimum order size of 1 lot, maximum order size of 1,000 lots for limit orders, and maximum order size of 200 lots for market orders.

The Exchange may adjust the minimum order size, maximum limit order size, and maximum market order size based on market conditions. The specific thresholds will be separately announced by the Exchange.

Article 8 PF contract is traded during night session hours and day session hours. The night session hours are 21:00 – 23:00. The day session hours are 9:00 – 11:30 and 13:30 – 15:00, with a break at 10:15 – 10:30.

Any suspension or cancellation of the night session or adjustment of the night session hours will be announced by the Exchange.

Article 9 PF contract has the following Last Trading Day: the 10th trading day of the delivery month.

Article 10 PF contract has the following product code: PF.

Chapter 3 Delivery

Section 1 General Rules

Article 11 PF may be delivered by exchange of futures for physical, delivery with standard delivery warehouse receipts, and delivery with standard factory warehouse receipts.

Rolling Delivery for PF is conducted through Response Matching.

The specific delivery procedures are governed by the applicable provisions of the Futures Delivery Rules of Zhengzhou Commodity Exchange and these Detailed Rules.

Article 12 PF contract has a delivery unit of 5 metric tons.

Article 13 PF contract has the following Last Delivery Day: the 13th trading day of the delivery month.

Article 14 The standard warehouse receipts for PF may be classified into standard delivery warehouse receipts and standard factory warehouse receipts.

The standard warehouse receipts for PF are all general standard warehouse receipts.

Article 15 The standard warehouse receipts for polyester fiber registered on or before the 15th trading day of March, June, September, or December of each year shall be cancelled on or before the 15th trading day of March, June, September, or December of the same year.

Article 16 Delivery of PF shall be made against a special VAT invoice.

Article 17 The delivery warehouses and factory warehouses for PF and the relevant premiums and discounts are determined and published by, and subject to the adjustment of, the Exchange.

Article 18 The premiums and discounts for a delivery warehouse or factory warehouse for PF are transferred when the corresponding standard warehouse receipts are registered or cancelled; the corresponding special VAT invoice shall be issued by the registrant to the cancelling party under the supervision of the delivery warehouse or factory warehouse. The delivery warehouse or factory warehouse will collect a deposit based on the applicable VAT rate, which deposit shall be returned following the issuance of the special VAT invoice.

Article 19 The benchmark delivery price of PF is the tax-included price (including packaging fees) at which the benchmark deliverable is delivered through a load-out from a benchmark delivery point onto a truck.

Article 20 The registrant of a standard delivery warehouse receipt shall bear all the expenses incurred before the commodity is transported to the designated storage location in the delivery warehouse as well as the expenses from loading the commodity onto the truck at load-out; the pick-up person shall bear all the expenses incurred after the commodity is loaded onto the truck. In a commodity pick-up with trucks, all expenses incurred before the commodity is loaded onto the trucks shall be borne by the factory warehouse; all expenses incurred thereafter shall be borne by the pick-up person.

The rates of delivery fees, storage fees, inspection fees, and other delivery-related fees will be separately announced by the Exchange.

Article 21 The cost of packaging materials for polyester fiber is included in the price of the corresponding futures contract and is not charged separately.

Article 22 Any matter in relation to the creation, negotiation, and cancellation of standard warehouse receipts for PF that is not covered by these Detailed Rules are governed by the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Section 2 Delivery Standard

Article 23 The delivery of PF is governed by national standards and these Detailed Rules.

Article 24 The benchmark deliverable is round semi-dull virgin polyester staple fiber for yarn spinning meeting the quality standard for “Cotton-Type Premier Grade” under National Standard of the People’s Republic of China “Polyester Staple Fiber” (GB/T 14464-2017) with the specifications of 1.56 dtex × 38 mm, 0.10% ≤ oil content ≤ 0.20%, 0.30% ≤ moisture regain ≤ 0.60%, and sinking time ≥ 5.0 seconds. The definition and testing method of sinking time are governed by Man-Made Fibre—Test Method for Hydrophilic Property of Staple Fibre (FZ/T 50040-2018).

Article 25 PF requires deliverable brand registration. The benchmark deliverable must be polyester fiber produced by a manufacturer approved by the Exchange. The list of approved manufacturers will be separately announced by, and subject to the adjustment of, the Exchange.

Article 26 The packaging and package markings for deliverable polyester fiber shall meet the relevant requirements of GB/T 14464-2017. The outer packaging shall be coated woven polypropylene mesh fastened with packing tape. Each bag shall have labels for the product name, specifications, grade, lot number, net weight, date of production, trademark, product standard code, name and address of the manufacturer, and warning labels for product protection and transport. Each bag shall have a net weight of 350 kg, 380 kg, or such other specifications as announced by the Exchange.

Section 3 Delivery with Standard Delivery Warehouse Receipts

Article 27 A load-in deposit of RMB 30 yuan/metric ton shall be paid to the delivery warehouse at the submission of a delivery intention for PF.

Article 28 A separate delivery intention shall be declared for the polyester fiber produced by each manufacturer.

Article 29 The Load-in Notice issued by a polyester fiber delivery warehouse is valid for fifteen (15) calendar days.

Article 30 No polyester fiber with a date of production beyond 90 days from the latest date of cancellation for standard warehouse receipts may be registered for standard warehouse receipts.

No polyester fiber that comes with damaged or wet packaging or shows signs of serious contamination, or similar conditions may be registered for standard warehouse receipts.

Article 31 At load-in, the registrant of the standard warehouse receipts shall provide the delivery warehouse the Certificate of Quality issued by the manufacturer of the current shipment of polyester fiber, sign the Commitment of Quality and be responsible for the quality indicators as listed in the Commitment of Quality. The Certificate of Quality shall indicate the manufacturer, date of production, applicable quality standards, and quality inspection results for the current shipment of polyester fiber, among other information. 

Article 32 A delivery warehouse conducts weight inspection on polyester fiber at load-in. The weight inspection may be conducted through a combination of truck scale and weighing of randomly selected packs, or solely by weighing of randomly selected packs.

Article 33 The load-in quality inspection of polyester fiber is to be conducted by a Designated Quality Inspection Agency; the inspection fees shall be borne by the registrant of the corresponding standard warehouse receipts. One sample shall be taken for every 95 metric tons of polyester fiber and for any remaining quantity less than 95 metric tons. Each sample is to be partitioned into three parts, with two jointly sealed by the delivery warehouse and registrant and then sent or delivered to the Designated Quality Inspection Agency, and one kept by the delivery warehouse.

The Designated Quality Inspection Agency shall issue and notify the delivery warehouse of the inspection results within seven (7) business days of receiving each batch of samples.

The load-in inspection of sinking time may be waived for any other registrant that has submitted to the Exchange and delivery warehouse a Commitment of Use Liability and other related materials that conform to the requirements of the Exchange, while other quality indicators shall be normally tested.

Any registrant or delivery warehouse that objects to the results of load-in quality inspection may request the Exchange for a re-inspection. The re-inspection agency shall issue the results of re-inspection within seven (7) business days from the date it receives the inspection notice from the Exchange, and notify the Exchange of the results in writing. The Exchange will then forward the results to the party that requested for the re-inspection. The other specific procedures are governed by the “Load-in Re-inspection of Delivery Warehouse Commodities” section under the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Article 34 The Exchange may approve inspection-exempt brands for the deliverables of PF. The load-in quality inspection for polyester fiber may be waived for any load-in request directly submitted by an inspection-exempt brand, and for any other registrant that has submitted to the Exchange and delivery warehouse a Commitment of Quality and other related materials that are issued by an inspection-exempt brand and conform to the requirements of the Exchange. The list of inspection-exempt brands for polyester fiber will be separately announced by the Exchange.

Article 35 The registrant of standard warehouse receipts shall be present at the weight inspection and load-in sampling of polyester fiber to monitor the process. The delivery warehouse and the registrant shall confirm the inspection results with their signatures and seals and are jointly responsible for the genuine load-in of the polyester fiber.

After the commodity is loaded in, the delivery warehouse shall record in a file such information as the name, contact person, and contact information of the registrant; load-in quantity; manufacturer; and the storehouse and stack location, which information shall be confirmed by the registrant with signature.

Article 36 Upon the cancellation of a standard delivery warehouse receipt for polyester fiber, the pick-up person shall, within ten (10) business days after the Exchange issues the Pick-up Notice, visit the delivery warehouse to complete the pick-up procedures with his ID card, certificate of identity and authority issued by his employer, and the verification code for the Pick-up Notice; verify the quality of the commodity and determine the means of transport; and pay the applicable fees in advance.

Where the pick-up person provides his own transport vehicles, the delivery warehouse shall, as of the date that it is visited by the pick-up person with the Pick-up Notice to arrange for the load-out and the transport vehicles arrive at the delivery warehouse, begin the shipping process and stop charging the storage fees for any commodity already loaded onto such transport vehicles.

Where the pick-up person requests the delivery warehouse to handle the transport of the commodity, the delivery warehouse shall ship the commodity within ten (10) calendar days by trucks or ships or twenty (20) calendar days by railcars from the day when the pick-up person contacts the delivery warehouse with the Pick-up Notice to arrange for the load-out, designates the destination, and pays the relevant fees (including but not limited to rail freight forwarding charges and terminal handling charges) in advance. Any delivery warehouse that is not able to ship the commodity within the prescribed time limit may not charge storage fees for the period after the time limit.

The shipping time limit in the preceding paragraph does not apply if shipment is delayed due to such reasons as a change of the means of transport or shipment date by the pick-up person, missing pick-up documentations, late payment of relevant fees, or special shipping instructions.

Article 37 The load-out weight inspection of polyester fiber shall be jointly conducted by the delivery warehouse and the pick-up person in reference to the rules on load-in weight inspection.

Any quantity shortage at load-out shall be made up by the delivery warehouse in a timely manner; failing which, the delivery warehouse shall compensate the pick-up person for the price of the missing commodity based on the highest final settlement price of the PF contract in the nearby month up to and including the date the Pick-up Notice is issued.

Article 38 Any pick-up person that objects to the quality of the polyester fiber at load-out may request the Exchange for a one-time re-inspection with the payment of the re-inspection fees in advance. Such objection shall be raised within ten (10) business days after the Pick-up Notice is issued. The specific procedures are governed by the “Load-out Re-inspection of Delivery Warehouse Commodities” section under the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Article 39 A delivery warehouse is liable for compensation for any polyester fiber at load-out that comes with damaged or wet packaging or shows signs of serious contamination, or similar conditions.

Article 40 A delivery warehouse shall arrange the load-out of polyester fiber by the “First in, First Out (FIFO)” principle.

Section 4 Delivery with Standard Factory Warehouse Receipts

Article 41 The maximum number of standard warehouse receipts registerable by a PF factory warehouse is determined by, and subject to the adjustment of, the Exchange.

A factory warehouse for polyester fiber shall provide registration security in accordance with the rules of the Exchange before requesting to register standard warehouse receipts.

Article 42 Upon the cancellation of a standard factory warehouse receipt for polyester fiber, the pick-up person shall, within ten (10) business days after the Exchange issues the Pick-up Notice, visit the factory warehouse to complete the pick-up procedures with his ID card, certificate of identity and authority issued by his employer, and the verification code for the Pick-up Notice; verify the quality of the commodity and determine the means of transport; and pay the applicable fees in advance.

The pick-up person shall, at the time of pick-up, come to an agreement with the factory warehouse on the shipment speed and the load-out completion time. If no agreement can be reached, the factory warehouse shall comply with the daily shipment volume approved by the Exchange.

In these Detailed Rules, “daily shipment volume” refers to the minimum quantity of futures deliverable ready for shipment by a factory warehouse within a 24-hour period. The daily shipment volume of a factory warehouse is determined by and subject to the adjustment of the Exchange.

Article 43 Unless otherwise agreed with the pick-up person, a factory warehouse shall begin shipping the commodity within three (3) calendar days after the pick-up procedures are duly completed. The pick-up person may either pick up the commodity personally at the warehouse or request the factory warehouse to ship it on his behalf.

The shipping time limit in the preceding paragraph does not apply if shipment is delayed due to such reasons as a change of the means of transport or shipment date by the pick-up person, missing pick-up documentations, late payment of relevant fees, or special shipping instructions.

Article 44 The load-out weight inspection of polyester fiber from a factory warehouse shall be jointly conducted by the pick-up person and the factory warehouse, with the weight obtained by the factory warehouse being conclusive. Load-out shall be conducted without shortage in weight.

Any quantity shortage at load-out shall be made up by the factory warehouse in a timely manner; failing which, the factory warehouse shall compensate the pick-up person for the price of the missing commodity based on the highest final settlement price of the PF contract in the nearby month up to and including the date the Pick-up Notice is issued.

The pick-up person shall be present at the delivery location to monitor the delivery process, or be deemed to have accepted the load-out weight.

Article 45 Unless otherwise agreed with the pick-up person, a factory warehouse shall ensure the commodity delivered meets the quality specifications of the Exchange for delivery.

At delivery, the factory warehouse shall present to the pick-up person the quality inspection report showing conformance with the standards for delivery. The pick-up person may refuse to accept any polyester fiber produced 90 or more days before the cancellation date of the corresponding standard warehouse receipt. Any polyester fiber that comes with damaged or wet packaging or shows signs of serious contamination, or similar conditions may not be accepted or delivered by a factory warehouse.

Article 46 Where the pick-up person or factory warehouse objects to the weight or quality of the commodity, they shall jointly determine a solution; failing which, the pick-up person or factory warehouse may request the Exchange for a one-time re-inspection with the requester’s payment of the re-inspection fee and other relevant fees in advance. The request for re-inspection shall be submitted before load-out. The procedures for the re-inspection are governed by the “Load-out Re-inspection of Factory Warehouse Commodities” section under the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Article 47 Where the factory warehouse or pick-up person fails to ship or pick up the commodity as planned, they shall discuss a solution in a timely manner and appropriately adjust the shipment speed or schedule. The party at fault shall additionally pay a late fee. The amount of late fee = Σ[5 yuan/metric ton/day × days delayed × commodity quantity yet to be shipped or picked up].

Where the factory warehouse fails to ship the commodity in full within five (5) calendar days from the agreed final shipment date, the pick-up person may request the factory warehouse to terminate shipment and pay liquidated damages. The amount of liquidated damages = highest final settlement price of the PF contract in the nearby month × commodity quantity yet to be shipped × 120%.

The factory warehouse or the pick-up person is not liable for the late fee or liquidated damages if shipment or pick-up is delayed by weather or other force majeure events.

The factory warehouse and pick-up person shall properly keep the commodity shipment schedule, agreements, and shipment- and pick-up-related documentations as the basis for settling potential disputes.

Article 48 Where more than one pick-up person takes delivery at the same time, the factory warehouse may arrange the shipment in accordance with such factors as the time scheduled with the pick-up persons and the completion time of the pick-up procedures.

Article 49 Where a factory warehouse defaults on its delivery obligations and fails to pay or fully pay the compensation or liquidated damages, the Exchange may compensate the pick-up person by disposing of the security provided by the factory warehouse.

Article 50 Upon the completion of shipment and the Exchange’s written confirmation of the fulfillment of quality and quantity obligations by the factory warehouse, the Exchange will return the properties or documents provided by the factory warehouse as security at the factory warehouse’s request.

Chapter 4 Risk Management

Article 51 PF contract has a minimum Trading Margin rate of 5% of contract value.

The Trading Margin rate of PF contract varies as follows:

Trading period	Trading Margin rate
From listing to the 15th calendar day of the month preceding the delivery month	5% of contract value
From the 16th calendar day to the last calendar day of the month preceding the delivery month	10% of contract value
Delivery month	20% of contract value

Article 52 PF contract has a price limit of ±4% of the settlement price of the preceding trading day.

Article 53 The position limit of a particular PF contract varies as follows:

Trading period	Maximum long position or short position held by a non-futures brokerage Member or client (lot)
From listing to the 15th calendar day of the month preceding the delivery month	Open interest < 100,000	10,000
	Open interest ≥ 100,000	10% of open interest
From the 16th calendar day to the last calendar day of the month preceding the delivery month	1,500
Delivery month	300 (0 for individuals)

“Position limit” as used in this Article refers to the maximum size of speculative positions (calculated on a single-counted basis) in a given futures contract that a Member or client is permitted to hold by the Exchange.

Article 54 Where the Exchange adjusts the Trading Margin rate or price limit of PF contract in accordance with the Risk Control Rules of Zhengzhou Commodity Exchange or other rules, such adjusted values shall prevail.

Chapter 5 Ancillary Provisions

Article 55 Any violation of these Detailed Rules will be handled in accordance with the Rules of Zhengzhou Commodity Exchange on Violations and other applicable Rules of the Exchange.

Article 56 Any matter not covered by these Detailed Rules is governed by the relevant Rules of the Exchange.

Article 57 The Exchange reserves the right to interpret these Detailed Rules.

Article 58 These Detailed Rule take effect on October 21, 2024.

(This English version is for reference ONLY. In case of any inconsistency between the different language versions, the Chinese version prevails.)