(Adopted at the 17th meeting of the 8th Board of Governors on July 18, 2024; issued by Announcement [2024] No.105 on August 16, 2024; effective as of August 30, 2024)

Chapter 1 General Provisions

Article 1 These Detailed Rules are made in accordance with the Trading Rules of Zhengzhou Commodity Exchange and the bottle-grade polyethylene terephthalate (“PET”) resin futures (“PR”) contract to regulate PR-related activities at 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 PR contract has a contract size of 15 metric tons/lot.

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

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

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

Article 7 PR 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 PR 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 PR contract has the following Last Trading Day: the 10th trading day of the delivery month.

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

Chapter 3 Delivery

Section 1 General Rules

Article 11 PR 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 PR 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 PR contract has a delivery unit of 15 metric tons.

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

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

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

Article 15 The standard warehouse receipts for bottle-grade PET resins registered on or before the 15th trading day of January, May, September of each year shall be cancelled on or before the 15th trading day of January, May, September of the same year.

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

Article 17 The delivery warehouses and factory warehouses for PR 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 PR 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 PR 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 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.

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

Article 21 The cost of packaging materials for bottle-grade PET resins 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 PR that is not covered by these Detailed Rules is governed by the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Section 2 Delivery Standard

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

Article 24 The benchmark deliverable is “Premier Grade” bottle-grade PET resins for food packaging under National Standard of the People’s Republic of China “Poly(ethylene terephthalate) (PET) Resin for Bottles” (GB/T 17931-2018).  

Article 25 PR requires deliverable brand registration. The benchmark deliverable must be bottle-grade PET resins 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 bottle-grade PET resins shall meet the relevant requirements of GB/T 17931-2018. The bottle-grade PET resins shall be packed in FIBC bulk bags, and each bag shall have a net weight of 1,100 kg or other weight prescribed 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 PR.

Article 28 Delivery intentions shall be separately declared for the bottle-grade PET resins produced by different manufacturers or with different designations.

Article 29 The Load-in Notice issued by a delivery warehouse for bottle-grade PET resins is valid for fifteen (15) calendar days.

Article 30 At load-in, the registrant of the standard warehouse receipts shall provide the delivery warehouse with the documents evidencing commodity quality issued by the manufacturer of the current shipment of bottle-grade PET resins to certify that the bottle-grade PET resins meet the standard for delivery.

Article 31 Any bottle-grade PET resins that are produced for ninety (90) or more days or come with damaged or wet packaging or show signs of serious contamination, or similar conditions may not be accepted by a delivery warehouse for load-in.

Article 32 The load-in weight inspection of bottle-grade PET resins is to be conducted by the delivery warehouse, and 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 bottle-grade PET resins 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 330 metric tons of bottle-grade PET resins and for any remaining quantity less than 330 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 five (5) business days of receiving each batch of samples.

Any registrant or delivery warehouse that objects to the results of load-in quality inspection may request the Exchange for a re-inspection. The 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 PR. The load-in quality inspection for bottle-grade PET resins 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 that is issued by an inspection-exempt brand and conforms to the requirements of the Exchange. The list of inspection-exempt brands for bottle-grade PET resins 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 bottle-grade PET resins 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 bottle-grade PET resins. Any commodity without the signatures and seals of the delivery warehouse and registrant shall not be delivered against futures products.

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; designation; 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 bottle-grade PET resins, 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 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 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 bottle-grade PET resins 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 PR 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 bottle-grade PET resins 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 bottle-grade PET resins that come with damaged or wet packaging or show signs of serious contamination, or similar conditions.

Article 40 A delivery warehouse shall arrange the load-out of bottle-grade PET resins 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 factory warehouse for bottle-grade PET resins is determined by, and subject to the adjustment of, the Exchange.

A factory warehouse for bottle-grade PET resins 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 bottle-grade PET resins, 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 bottle-grade PET resins 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 PR contract in the delivery 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 delivery standards of the Exchange. The pick-up person may refuse to accept any bottle-grade PET resins that are produced one hundred and eighty (180) or more days before the cancellation date of the corresponding standard warehouse receipt, or that come with damaged or wet packaging or show signs of serious contamination, or similar conditions.

At the time of load-out, the factory warehouse shall take a sample in the presence of the pick-up person before the commodity is loaded onto the pick-up person’s transport vehicles, immediately partition into three parts, and select one at random for use by the pick-up person; the other two parts shall be signed and sealed by both parties and kept by the factory warehouse, with one as the sample for re-inspection when a quality dispute arises and the other retained for ninety (90) calendar days after shipment.

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 PR 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 PR contract has a minimum Trading Margin rate of 5% of contract value.

The Trading Margin rate of PR contract varies as follows:

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

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

“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 PR 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 Rules take effect on August 30, 2024.

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