DCE adjusts commission charge on iron ore futures contracts

Monday, 21 December 2020 15:13:44 (GMT+3)   |   Shanghai

Dalian Commodity Exchange (DCE) has announced that it will adjust the commission charged on iron ore futures contracts as of December 22, raising the charge from 0.001 percent to 0.01 percent of the transaction volume, while the charge for the main iron ore contracts, including the 2101, 2105 and 2109 contracts, will increase from 0.01 percent to 0.04 percent.

One single iron ore contract includes 100 mt, while market players can trade up to 1,000 contracts of iron ore, totaling 100,000 mt, in each transaction.

Against the background of steady supply in the iron ore market, the iron ore price has kept rising this year, with iron ore prices in the spot market surging by around 70 percent compared to the beginning of the year, while iron ore futures prices at DCE have increased by over 50 percent.

The China Iron and Steel Association (CISA) has been in communication with the three main miners - Vale, BHP and Rio Tinto - in relation to the issue of iron ore supply to China, with the three miners indicating no cuts in their supplies recently.

The latest steps taken by DCE are aimed at cooling down the overheating iron ore market, and especially to curb speculation in the iron ore futures market.

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