The world’s first glass futures landed in Zhengzhou Commodity Exchange on Dec.3. The benchmark price of the first glass futures was 1420 yuan per ton. The contract prices tumbled as soon as the market opened, with the price of major contract 1305 falling 7.18 percent to 1319 yuan per ton.

The trading volume of all contract types varying in nine months totaled 720 thousand hands, among which the trading volume of major contract 1305 was nearly 700 thousand hands, accounting for 97 percent. The positions held were nearly 80 hands. All these mark an unusual trading condition of a new type of futures in the domestic market.

The trading of glass futures being so active to draw a lot of market attentions, exceeding the market expectation, is relevant to the collective dive of contract prices after the market opened. The glass market of China is undergoing the slack season of sales. As a result, the stock pressure of glass making enterprises will gradually surface. Therefore, many market participants claim that there’s hardly room for glass prices to grow in the short term.

Xue Yong, analyst at Liang Yun Futures said,“The demand on glass slashes currently as winter comes. In order to insure good sales-output ratios and reserve sufficient capital to get through the winter, glass making enterprises lowered prices one after another. Generally speaking, there’s surplus capacity in glass industry, and the regulation and control haven’t been eased in real estate industry as real estate consumes 75 percent of China’s total glass output. Thus in the short term the short side is expected to dominate the trend of glass futures.”