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The “2020 China Coal Trade Conference”, hosted by the China National Coal Association (CNCA) and organized by the China Coal Transportation and Distribution Association, is held in Rizhao, Shandong Province on December 4. Dalian Commodity Exchange (DCE) and the CNCA sign the strategic cooperation agreement at the conference. DCE CEO Xi Zhiyong and Chief of the CNCA Discipline Inspection Commission Zhang Hong sign the agreement on behalf of the two sides.
According to the agreement, the two sides will jointly advance the feasibility research on listing gas coal and other coal futures products, make demonstrations on product contracts according to industrial opinions, and create a positive listing environment. Besides, the two sides will jointly research the development trend of the coal market, facilitate data sharing, and cooperate in organizing industrial conferences, forums and surveys. The signing of this agreement will promote the in-depth cooperation between DCE and the CNCA and enterprises in the coal industry to jointly cultivate the market and lay a solid foundation for both the listing of gas coal futures and other new products and the maintenance of listed futures products like coking coal and metallurgical coke. “The signing of this agreement shows the two sides will jointly create a new chapter of full cooperation in futures products development, industrial market expansion and information exchange.” says Xi Zhiyong.
DCE was approved to research the listing of gas coal futures in 2018. Gas coal, a kind of soft coal according to the Chinese Standard, accounts for a large proportion in the known reserve of coking coal and has been widely used in electricity generation, coking, chemical engineering and building materials. The listing of gas coal futures will better serve the gas coal producing and consuming enterprises and provide convenient services for mines, power plants and coking plants to hedge via gas coal futures. DCE has become the largest coal futures market in the world and its coking coal and metallurgical coke futures have become the important production, operation and risk management instruments of the coal and coke industry. Gas coal futures will enrich the products in the coal and coke industry chain of DCE, and DCE is now steadily promoting relevant research on gas coal futures.
The CNCA, established on March 18, 1999, upon the approval of the Ministry of Civil Affairs, is a national general social organization of the coal industry under the management of the State-owned Assets Supervision and Administration Commission of the State Council. At present, the CNCA has 1,176 member units, covering enterprises and public institutions in the fields of coal production and sales, capital construction, machine manufacturing and geological prospecting, and the coal output of these member enterprises accounts for about 80% of the total in China, showing its extensive industry influence.
