Chinese Iron Ore Futures

 

 

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