Abstract: Commodities futures index,first as an economic indicator,second as a financial derivative tool,it is helpful for government department,investor and investigator to hold and grasp commodity price.Therefore,we bring forward the index compilation method according with the real condition of China and figure out the raw material industrial index.The conclusings have drawn,the Chinas raw material industrial index circulates normally,the Granger causality is existing from China’s raw material industrial index to PPI,the former leads the latter by three months.Since the China’s raw material industrial index reflects the price fluctuations of raw material industrial products,it could be a indicator to monitor the industrial boom of our country.Ultimately,the author suggests that the government administration should put the raw material industrial index into the Shanghai Futures Exchange as a financial derivative investable tool with a feasible plan.

Key words: Futures price index, production material price