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On December 6, the fiberboard and the blockboard futures contracts were officially listed on Dalian Commodity Exchange (DCE). On the first listing day, Dare Technologies Global Co., Ltd. (Dare Group) succeeded in the transaction of the first order of the fiberboard futures for corporate accounts. During the call auction that day the company opened long positions by buying the contracts of FB1404 and BB1404 through SDIC CGOG Futures Co., Ltd., securing the transaction of the first corporate order of the fiberboard and the blockboard futures contracts.
Dare Group currently boasts Power Dekor, Dare Global and other brands famous at home and abroad, production bases in seven regions such as Jiangsu, Jiangxi, Anhui, Guangdong, Fujian and Heilongjiang, the products covering wooden door, floor board, furniture and other fields, and an annual production capacity of 2.2 million cubic meters. Its size ranks first in Asia and top ten in the world within its industry. It is learnt that as early as three years ago, Dare Group set up the risk control department. An official of the asset management company of the group said that as a producer of fiberboard and blockboard, the group has always been in face of significant risks in production, processing, trade and circulation. The listing of the fiberboard and blockboard futures in China will provide the enterprises with a platform for avoiding risks and instruments and opportunities for hedging. Since learning that DCE would list the fiberboard and blockboard futures, the group has made preparations by studying the contract rules and designing the hedging plans.
Dare Group placed the first corporate order of fiberboard and blockboard through the broker SDIC CGOG Futures Co., Ltd. Gao Jie, general manager of the futures company, said that with the intensified risks of the fiberboard and blockboard market, taking an active part in the futures hedging business will not only help the enterprise avoid risks but also promote the business transformation of the entire group. The listing of the futures products of fiberboard and blockboard will play a significant role in promoting the production and trade of the two boards. She also hoped that Dare Group could take full advantage of the location at the delivery site, make use of the futures as an efficient platform for risk management, effectively avoid the risks on the fiberboard and blockboard market and promote the sustained, rapid and healthy development of the group’s businesses.
The listing of the two boards futures has received positive response from the spot producers and traders. On the first day of listing, Zhejiang and Shandong were the regions with the most participating enterprises. Ji Jianqiang, Chairman of Zhejiang Deqing Jufeng Forest Product Co., Ltd., said that on learning the news of the futures of the two boards to be listed, the company immediately consulted Dayue Futures, built the company’s organizational structure for the futures and organized the training for the company’s management under the guidance of the futures company, and thoroughly studied the systems of trading, delivery and risk management of the two boards futures. “It is on the basis of the adequate preparations that we had the full confidence in participating in the futures trading on the first listing day.” Wu Jian, General Manager of Dayue Futures, said that Zhejiang is the third largest blockboard-producing province in China with the output accounting for 11.65% of the total nationwide as well as one of the benchmark delivery areas of the blockboard futures. The board-related enterprises in Zhejiang have a comparative advantage in participating in the futures trading. After the listing of the two boards, Dayue Futures will provide the relevant enterprises in the region with complete training on the futures market and the advisory services in the hedging programs, and better serve the real enterprises of the boards.
