Dalian Commodity Exchange (DCE), one of the four futures exchanges in mainland China, has announced that the delivery points for its iron ore futures trade will be located in five ports around the Bohai Rim region, namely, the ports of Qingdao, Tangshan, Rizhao, Tianjin and Lianyun.
The ports in question are hubs of the iron ore trade in China, accounting for 60 percent of China's total throughput of iron ore. DCE stated that it also chose the five ports with the aim of reducing delivery risks.
As previously reported by SteelOrbis, China Securities Regulatory Commission (CSRC), China's top securities regulator, recently announced its formal approval for iron ore futures trading at Dalian Commodity Exchange (DCE). The exact time for the official listing of the futures contracts is to be decided based on the preparatory work carried out by the DCE and also on the market situation. Trading is expected to be for iron ore containing 62 percent Fe, in units of 100 mt. A CRSC official said the trading of iron ore futures will help establish a pricing system which will better reflect supply and demand in China and will also help Chinese enterprises to better manage risks of fluctuations in prices.