Chinas Dalian Commodity Exchange to launch coke futures by year end
Chinas Dalian Commodity Exchange to launch coke futures by year end Back to News

 Dalian Commodity Exchange, in northeast China, is planning to launch metallurgical coke futures contracts by the end of 2010, and subsequently coking coal futures, Joshua Johnston, Assistant Manager of media relations at
DCE told Platts Tuesday.

Johnston said that there was a natural geographic fit between the DCE and coke, as a lot of the extraction and production happens in the north and northeast of the country.

He added that the coke and coking coal futures contracts were still in the early stages of development, so was not able to provide additional details regarding contract specifications or more specific timelines.

The contracts are to act as risk mitigation tools to counter the continuing physical price volatility of these materials. Chinese coke and coking coal prices have risen sharply in the first quarter before contracting in the second quarter.

Current contracts trading on the DCE include corn, soybean, palm oil and petrochemical products including LLDPE and PVC.

On its existing contracts, the DCE has only adopted physical delivery,rather than cash settlement.

In 2008, DCE ranked as the world's second largest agricultural commodity exchange, it says on its website. At the end of 2009, DCE's member companies reached 189, its designated delivery storage facilities amounted to 130 and it attracted 620,000 investors from 28 provinces. Only Chinese citizens and China-registered corporate entities can trade on the exchange.