Dalian Commodity Exchange: First Delivery Of Domestic Blended Ores Completed For Iron Ore Futures

On August 25, 2023, China Minmetals Corporation (Tangshan Caofeidian) Ore Holdings Co., Ltd. ( “China Minmetals Caofeidian”) and Cangzhou China Railway Equipment Manufacturing Materials Co., Ltd. ("Cangzhou China Railway") successfully completed the delivery of 20,000 tons of iron ore through the exchange of futures for physicals (EFP). This marks the first involvement of domestic blended ores in iron ore futures delivery, which effectively meets the needs of enterprises for individualized risk mitigation and trading.

According to a spokesperson from Dalian Commodity Exchange (DCE), since the new contract rules for iron ore futures were implemented commencing with the I2205 contract and beyond, the quantity of economically deliverable products for iron ore futures has significantly increased, with about five different kinds of ores available for economic delivery of each contract. For the next step, DCE plans to continue heeding the demands from the enterprises, optimizing the rules for iron ore futures contracts, and diversifying the pool of deliverable resources. In doing so, DCE hopes to enhance industry participation in the futures market, and better serve the risk management of iron and steel industrial chain enterprises.