(Adopted at the 25th meeting of the 8th Board of Governors on June 13, 2025; issued by Announcement [2025] No.64 on July 8, 2025; effective as of July 22, 2025)

Chapter 1 General Provisions

Article 1 These Detailed Rules are made in accordance with the Trading Rules of Zhengzhou Commodity Exchange and the propylene futures (“PL”) contract to regulate PL-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 PL contract has a contract size of 20 metric tons/lot.

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

Article 5 PL contract has a minimum price fluctuation of 1 yuan/metric ton.

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

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

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

Chapter 3 Delivery

Section 1 General Rules

Article 11 PL 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 PL is conducted through either Response Matching or Organized 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 PL contract has a delivery unit of 20 metric tons.

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

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

The standard warehouse receipts for PL are all non-general standard warehouse receipts.

Article 15 The standard warehouse receipts for PL registered on or before the 15th trading day of January, March, May, July, September, or November of each year shall be cancelled on or before the 15th trading day of January, March, May, July, September, or November of the same year.

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

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

Article 18 The benchmark delivery price of PL is the tax-included price at which the benchmark deliverable is delivered through a load-out at a benchmark delivery point onto a truck.

Article 19 The registrant of a standard warehouse receipt shall bear all the expenses incurred before the commodity is transported to the designated storage area 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 20 Any client that is not qualified to produce, store, use, deal in, or transport propylene shall not take part in the delivery of propylene.

Article 21 Any matter in relation to the creation, negotiation, and cancellation of standard warehouse receipts for PL 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 22 The delivery of PL is governed by national standards and these Detailed Rules.

Article 23 The benchmark deliverable is type I polymer grade propylene under National Standard of the People’s Republic of China “Polymer Grade Propylene” (GB/T 7716－2024), with water content ≤ 20mg/kg, and without requirements for hydrogen content and carbonyl sulfide indicator.

Article 24 The substitute deliverable and premium and discount are as follows:  propylene with water content >20mg/kg to ≤50mg/kg and other quality indicators meeting the requirements for benchmark deliverable, at the premium or discount announced by the Exchange.

Section 3 Delivery with Standard Delivery Warehouse Receipts

Article 25 A load-in deposit of RMB 75 yuan/metric ton shall be paid to the delivery warehouse at the submission of a delivery intention for PL.

Article 26 The Load-in Notice issued by a PL delivery warehouse is valid for fifteen (15) calendar days.

Article 27 Propylene shall be transported in a manner that complies with national regulations on the transport of dangerous chemicals.

Article 28 With respect to any request to load in domestically produced propylene, a Certificate of Quality issued by the manufacturer of the current shipment of product or relevant materials which can certify that the product meets the standard for delivery shall be presented to the delivery warehouse. The Certificate of Quality or relevant materials shall indicate the manufacturer, date of production, applicable quality standards, and quality inspection results for the current shipment, among other information.

With respect to any request to load in overseas-produced propylene, photocopies of the shipping documents, PBC Customs Declaration Form for Import Goods, and relevant quality certification materials for the current shipment of product shall be presented to the delivery warehouse. The registrant of the standard warehouse receipts shall sign a Guarantee of Lawful, Truthful, and Valid Documentations for Imported Propylene for the documentations it provides.

The delivery warehouse shall review the load-in documentations specified in the foregoing paragraphs as well as the registrant’s qualifications to deal in dangerous chemicals.

Article 29 At the load-in of propylene transported by truck, the weight shall be as indicated by the truck scale and the delivery warehouse shall be responsible for the weight inspection. At the load-in of propylene by ship, the weight shall be determined based on cargo hold’s capacity, the registrant of standard warehouse receipts shall engage a Designated Quality Inspection Agency to perform weight inspection, the delivery warehouse shall provide cooperation, and any expenses incurred shall be borne by the registrant.

Subject to the approval of the Exchange, the weight inspection may be conducted with another sophisticated weighing apparatus recognized by the relevant national quality and technical supervision authority.

Article 30 The load-in sampling and quality inspection of propylene is to be conducted by a Designated Quality Inspection Agency. The relevant delivery warehouse shall provide cooperation and any expenses incurred shall be borne by the registrant of the corresponding standard warehouse receipts.

The Designated Quality Inspection Agency shall issue and notify the delivery warehouse of the inspection results within three (3) business days from the day (inclusive) the sampling process is completed.

Where the registrant of standard warehouse receipts or the delivery warehouse disagrees with the results of load-in inspection, it shall, within three (3) calendar days after receiving the inspection results, submit a written request to the Exchange for re-inspection with the payment of the re-inspection fee in advance. 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 31 The registrant of standard warehouse receipts shall be present at the weight inspection and load-in sampling of propylene 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 quality of the commodity loaded in. 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; and the tank number, which information shall be confirmed by the registrant with signature.

Article 32 For any propylene that is already loaded in, if the corresponding prospective registrant can provide, and the delivery warehouse recognizes, the inspection report issued by the relevant Designated Quality Inspection Agency which certifies that the propylene meets the standard for delivery, the registrant may request to register the corresponding standard warehouse receipts.

Article 33 Where a tank contains a mixture of propylene for futures delivery and propylene for spot transactions, the relevant delivery warehouse shall ensure that the entire tank meets the standard for futures delivery. Any propylene not meeting this standard shall not be stored in a mixed tank or used to register for standard warehouse receipts.

The benchmark deliverable and substitute deliverable shall not be stored in a mixed tank.

Article 34 Upon the cancellation of a standard delivery warehouse receipt for propylene, 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, he shall begin taking delivery of propylene within two (2) business days of completion of pick-up procedures, unless otherwise agreed upon by both parties. 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 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 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 35 The load-out weight inspection of propylene shall be jointly conducted by the delivery warehouse and the pick-up person in reference to the rules on load-in weight inspection. Where the weight inspection is conducted by a Designated Quality Inspection Agency, the relevant expenses incurred shall be borne by the pick-up person.

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 PL contract in the nearby month up to and including the date the Pick-up Notice is issued.

Article 36 Any pick-up person that objects to the quality of the propylene at load-out may request the Exchange for a one-time re-inspection with the payment of the re-inspection fee in advance. Such objection shall be raised within ten (10) business days after the Pick-up Notice is issued.

Article 37 In the load-out re-inspection of propylene, where the premium/discount is lower than the one indicated in the standard warehouse receipt at the time of registration, the former shall be conclusive, the delivery warehouse shall bear the re-inspection fee and other relevant fees, additionally compensate the pick-up person in accordance with the premiums and discounts established by the Exchange, and the commodity shall be loaded out normally. Where the premium/discount is equal to or higher than the one indicated in the registered warehouse receipt, the latter shall be conclusive, and the pick-up person shall bear the re-inspection fee and other relevant fees. Any matter in relation to the load-out re-inspection not covered by these Detailed Rules is governed by the “Load-out Re-inspection of Delivery Warehouse Commodities” section under the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Section 4 Delivery with Standard Factory Warehouse Receipts

Article 38 The maximum number of standard warehouse receipts registerable by a PL factory warehouse is determined by, and subject to the adjustment of, the Exchange.

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

Article 39 Upon the cancellation of a standard factory warehouse receipt for propylene, 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 40 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 41 The load-out weight inspection of propylene from a factory warehouse shall be jointly conducted by the pick-up person and the factory warehouse. Load-out shall be conducted without shortage in weight. Unless otherwise agreed upon by both the factory warehouse and the pick-up person, the weight shall be as indicated by the truck scale in the case of truck transport, and be determined based on cargo hold’s capacity measured by a Designated Quality Inspection Agency in the case of ship transport with relevant fees borne by the factory warehouse.

Any quantity shortage at load-out shall be made up by the factory warehouse in a timely manner; failing which and the missing quantity is less than 5%, 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 PL 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 42 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.

Article 43 The pick-up person is entitled to decide whether to sample the commodity to be loaded out, and shall notify the factory warehouse in writing at least two (2) calendar days before load-out. Where the pick-up person fails to provide such notice within the prescribed time limit, he is deemed to have opted not to take samples. Where the pick-up person opts for sampling, he shall engage a designated quality inspection agency to take samples from the factory warehouse tanks at least two (2) calendar days before load-out and pay relevant fees. The designated quality inspection agency shall be present on the day of load-out to conduct sampling. Two samples can be taken each time, shall be jointly sealed and signed by the pick-up person and the factory warehouse, and then kept by the inspection agency. The samples shall be retained by the inspection agency until the 3rd calendar day (exclusive) after sealing, and will serve as the basis for settling potential quality disputes. The pick-up person opts not to take samples is deemed to have accepted the quality of the commodity.

Article 44 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. Objection over weight shall be raised before the propylene transport vehicles leave the factory warehouse or port terminal; objection over quality shall be raised within three (3) calendar days (exclusive) from the day the samples are sealed.

Article 45 In the load-out re-inspection of propylene, where the premium/discount is lower than the one indicated in the standard warehouse receipt at the time of registration, the former shall be conclusive, the factory warehouse shall bear the re-inspection fee and other relevant fees, additionally compensate the pick-up person in accordance with the premiums and discounts established by the Exchange, and the commodity shall be loaded out normally. Where the premium/discount is higher than or equal to the one indicated in the registered warehouse receipt, the latter shall be conclusive, and the pick-up person shall bear the re-inspection fee and other relevant fees. Any matter in relation to the load-out re-inspection not covered by these Detailed Rules is governed by the “Load-out Re-inspection of Factory Warehouse Commodities” section under the Rules of Zhengzhou Commodity Exchange on Standard Warehouse Receipts.

Article 46 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[10 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 PL contract in the nearby month × commodity quantity yet to be shipped × 120%.

The factory warehouse or 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 47 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 48 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 49 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 50 PL contract has a minimum Trading Margin rate of 5% of contract value.

The Trading Margin rate of PL 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 51 PL contract has a price limit of ±4% of the settlement price of the preceding trading day.

Article 52 The position limit of a particular PL 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	2000
From the 16th calendar day to the last calendar day of the month preceding the delivery month	500
Delivery month	50 (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 53 Where the Exchange adjusts the Trading Margin rate or price limit of PL 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 54 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 55 Any matter not covered by these Detailed Rules is governed by the relevant Rules of the Exchange.

Article 56 The Exchange reserves the right to interpret these Detailed Rules.

Article 57 These Detailed Rules take effect on July 22, 2025.

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