BP Zhuhai receives Chinese exchange approval as factory warehouse

Purified terephthalic acid (PTA) producer BP Zhuhai Chemical Co. Ltd, received approval from Zhengzhou Commodity Exchange as a designated factory warehouse from March 20 onwards, according to a statement from the exchange on Friday.

The approval for BP Zhuhai, a unit owned by oil major BP and Zhuhai Port Co., based in China's southeast region of Guangdong, further internationalizes the Zhengzhou exchange's PTA futures contract, said the exchange.

The Zhengzhou exchange had opened up its PTA futures contract to foreign traders in late 2018, and more recently launched PTA options trading in December.

China's futures contracts open to foreign traders apart from PTA include crude oil, iron ore and the TSR 20 technically specified standard rubber contract.

PTA, a petrochemical derivative, is an essential raw material for making polyesters extensively used in producing textiles, packaging and film products.

"PTA futures price is an important reference point for the global polyester industry's pricing," said the Zhengzhou exchange in its statement.

"(This) shows that PTA futures have become further internationalized from all aspects of trading and delivery."

It also added it was accelerating its listing of polyethylene terephthalate (PET) bottle flakes but did not specify when the contract would be listed.

(Reporting by Emily Chow; editing by David Evans)