DCE IO trading up 12% on 1st-day international trading
Source: Mysteel
May 04, 2018 19:12
China’s Dalian Commodity Exchange (DCE) saw its iron ore trading volume up 11.7% or 322,920 lots day on day to 3.09 million lots when the day trading ended on May 4, the first day for DCE to commence the international trading on iron ore futures.
Among the total, that for the most-traded September iron ore contract surged 267,662 lots or 10.3% on day to 2.86 million lots, or 286 million tonnes, and the contract was closed at Yuan 471.5/tonne ($74.1/t), or down Yuan 2.5/t or 0.5% on day as of Friday.
All the trading volumes were double counting including both buying and selling.
“International trading accounted for about 2,000 lots today, which appeared small, but very understandable as some investors would like to trade in small number of lots to familiarize with the whole trading and settlement procedures for real,” a DCE official commented.
Glencore and Mercuria were among the first to test out the International trading, an industrial source close to the companies confirmed, adding that Mercuria has been trading DCE iron ore contracts all along, but may be comparing capital cost via international trading in the name of overseas entities.
As of May 3, 17 China-registered futures companies and 22 overseas brokerages have successfully registered with DCE for the iron ore futures international trading, the DCE official confirmed.
“DCE’s iron ore trading volume has not rocketed, which is within expectation, as it is still early days, and at the same time, the iron ore fundamentals in China have been stable recently thanks to consistency in the policy environment,” an analyst from a Shanghai-based futures company said, disclosing four overseas investors opened accounts through his company as of May 4.
DCE is the second exchange in China to have opened to foreign investors for international trading after the oil contract on the Shanghai International Energy Exchange (INE), an affiliation to the Shanghai Futures Exchange, on March 26.
The exchange launched its iron ore futures on October 8 2013, and its trading volume for 2017 hit 32.9 billion tonnes in volume (in single counting) or Yuan 17 trillion in value.
Written by Hongmei Li, li.hongmei@mysteel.com and Anna Wu, wub@mysteel.com
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