Interested in
trading Chinese markets? Iron Ore Futures are one of the contracts open to
foreign participation.
The Iron Ore
Futures Contract is traded on the Dalian Commodity Exchange (DCE) launched in
October 2013 to local traders and international participation started in May
2018.
Iron Ore has
been hot hot hot , maybe a little too hot and the exchange has been trying to
cool it off a little by imposing trading limits and increasing margin
requirements and with excess supply hitting the market it has pushed prices
down but the liquidity is amazing and I believe its going to be red hot again
soon.
Prior to the launch
I had the honor to be invited to a prelaunch Q&A session with the DCE; it
was very insightful to learn how the DCE viewed foreign participation and their
goals for the contract.
The contract
specs are: trading unit is 100MT/ lot, quoted in CNY; trading hours are in
Chinese trading hours 9:00 - 11:30 a.m., 1:30 - 3:00 p.m., Beijing Time,
M to F
 |
| David Nealis with DCE at the FIA Expo Chicago |
The contract specifications are:
Iron Ore Futures
Contract of Dalian Commodity Exchange ("DCE")
|
Product |
Iron Ore |
|
Trading Unit |
100 MT/Lot |
|
Price Quote Unit |
CNY/MT |
|
Minimum Tick Size |
0.5 CNY/MT |
|
Daily Price Limit Range* |
4% of last settlement price |
|
Contract Months |
Jan, Feb, Mar, Apr, May, Jun, Jul, Aug, Sep, Oct, Nov, Dec |
|
Trading Hours |
9:00 - 11:30 a.m., 1:30 - 3:00 p.m., Beijing Time, Monday
to Friday, and other trading hours announced by DCE |
|
Last Trading Day |
The 10th trading day of the contract month |
|
Last Delivery Day |
The 3rd trading day after the last trading day |
|
Deliverable Grades |
Iron Ore Delivery Quality Standard of DCE (F/DCE I001-2017) |
|
Delivery Point |
The delivery warehouses and delivery locations of iron ore
designated by DCE |
|
Minimum Trading Margin* |
5% of the contract value |
|
Delivery Form |
Physical delivery |
|
Ticker Symbol |
I |
|
Listed Exchange |
DCE |
Note: DCE may adjust the daily price limit
ranges and the trading margins of each contract according to market conditions.
For details of current trading parameters of each contract, please see below
website:
www.dce.com.cn/DCE/TradingClearing/Business%20Parameters/Trading%20Parameters/index.html
Disclaimer: This
English translation may be used for reference only. In cases there is any
discrepancy between the English version and the original Chinese version, the
original Chinese version shall prevail. Dalian Commodity Exchange may change or
update this English translation without any prior notice and shall accept no
responsibility or liability for damage or loss caused by any error, inaccuracy,
misunderstanding, or change with regard to this English translation.
For more information about the DCE Iron Ore contract visit
their website via the link below
http://www.dce.com.cn/DCE/Products/Industrial/Iron%20Ore/491886/index.html
