Coal Futures - (UCXMc1)
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On March 22, Dalian Commodity Exchange held a news conference at which it was announced that coking coal futures was officially traded in market. Liu Xingqiang, chairman of DCE coal futures trading at the press conference that the launch of coking coal futures has great significance in improving coal futures trading market system and playing the fundamental role of market in coal resources allocation and is a new milestone in the building of coal market system.
After the launch of coking coal futures, DCE will ensure the safe and sound operation of market, help market play its functions and serve industries and real economy.
Liu Xingqiang pointed out the launch of coking coal futures is one of the important results achieved by China Securities Regulatory Commission in accelerating the innovation and development of futures market, and is a new milestone of Liaoning and Dalian in promoting the building of regional financial center. The launch of coking coal futures has an important significance in improving coal market system and playing the coal futures trading role of market in allocating coal resources.
The launch of coking coal futures will play a positive role in expanding the industrial service field of DCE and consolidate its position as a comprehensive exchange.
He said DCE has always attached importance to serving real economy in developing coking coal futures. In the process of development, it makes in-depth discussions and investigations with relevant industrial enterprises of coal, coke and steel and industrial associations, and formulates and improves a series of fundamental systems and rules, to try to follow the general laws of futures market and be close to the practical conditions of industries and actuals, to highlight the distribution characteristics of coking coal industry and take into consideration coal futures trading demand of downstream industries like coke, iron and steel, to meet the demand of enterprises for hedging and facilitate investment.
We hope relevant industries and enterprises to make full and effective use of futures market to strengthen and improve operation and management.
We hope the majority of investors to have a profound understanding of market risks and take rational part in market transactions. DCE is also coal futures trading to work together with all parties in actively carrying out coking coal futures knowledge training, coal futures trading provide better service for coal futures trading to make better use of futures instruments.
Coking coal is the coal product whose trading mode and pricing mechanism have been made market-oriented at an early date.
He also said that developing coking coal futures is a completely new and pioneering cause. China National Coal Association will strengthen its cooperation and communication with DCE and support the development of coking coal contract, to strive to maintain the smooth operation of futures market and promote the sound and sustainable development of coal industry.
Violent fluctuations in price bring great pressure to coking coal manufacturers that urgently need corresponding futures instruments to hedge against increasingly violent price fluctuations.
Through the operation of coking coal futures, coking coal producers, traders and consumers currently gradually realize the important functions of futures trading of price discovery and hedging and gradually learn to use futures market to hedge against risks of price fluctuations.
DCE, according to the actual conditions of spot coking coal and on the basis of summarizing the experience in the research and development of varieties including coke, introduces the coal futures trading of coking coal futures innovatively. Coking coal futures coal futures trading the coal-coke-steel industrial variety system complete, together with the existing coke coal futures trading steel futures, so that a comparatively closed variety hedging coal futures trading is formed which not only can help enterprises manage risks, but can promote the sound and sustainable development of coal, coke and steel industries.
He hoped relevant enterprises can take advantage of this opportunity to actively study and utilize futures to manage price risks and keep enhancing the level of operation and management. Iron ore and fiber board have been approved to be set up as projects by CSRC. In addition, DCE is studying corn starch, fruit glucose syrup, plywood, corrugated cardboard and other varieties, and the active research and promotion of polypropylene, fertilizers, liquefied petroleum gas and other energy chemical varieties are under way as coal futures trading.
After the global iron ore pricing mechanism changes from the traditional pricing based on long-term agreement to the seasonal and monthly pricing and prompt pricing based on spot market, price fluctuates more frequently, enterprises are faced with more risks and market calls for launching iron ore futures as soon as possible.
By October,the report on the establishment of iron ore futures project had been submitted to CSRC and been approved of. At present, DCE is making greater effort to promote the launch of this variety. The leaders from Dalian municipal government addressed the press conference to congratulate on the launch of coking coal futures.
Shi Bin, the director of the department of market supervision of No. Among those taking part in the press conference on the launch of coking coal futures are over 50 reporters from more than 40 media and representatives from the No. In recent years, domestic coking coal prices fluctuated violently. Though China had a large import volume in international trade, its enterprises had no decision-making right. Industrial insiders believe that it is of great significance to form authoritative domestic prices through centralized trading of coking coal and to hedge against risks and improve the overall development level and competitiveness of the industry via futures mechanism.
DCE will ensure the safe and sound operation of market and promote market functions On March 22, Dalian Commodity Exchange held a news conference at which it coal futures trading announced that coking coal futures was officially traded in market.