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The registration day of the warehouse receipts shall not be more than 60 calendar days from the date of manufacture, and the validity of the warehouse receipts is 4 months.
An official of the agricultural products business division of Dalian Commodity Exchange (DCE) said recently in an interview that DCE’s futures contracts of the “two boards” follow the system of standard warehouse receipt, adopt the lump delivery at warehouse, intensify the requirements for packaging and reduce the time in warehouse, so as to ensure the smooth delivery process and prevent the delivery risks.
The official said that as fiberboard and blockboard are highly standard forestry products, when designing the delivery systems of the “two boards” futures, DCE drew on the experience in the sophisticated products and made the systems compatible with the existing rules and systems as well as the trading and delivery systems, in a bid to ensure the safety of trading and delivery. On this basis, some rules have been specifically revised according to the characteristics of the products of fiberboard and blockboard. DCE believes that fiberboard and blockboard as the forestry products require for a dry storage environment, and the long-term storage will cause the increase of the moisture content which will affect the physical properties of the boards. In order to avoid the long-term storage affecting the quality of the boards, with reference to the requirements of the national standards, DCE requires that the registration day of the standard warehouse receipt should not be more than 60 calendar days from the date of manufacture (including 60 calendar days), and the validity of the warehouse receipt is 4 months with the cancellation implemented on the last trading days of March, July and November each year, so as to ensure that the longest in-warehouse time of fiberboard and blockboard available for delivery would not be more than 6 months, shorten the storage time, guarantee the quality of the delivery products and make sure of the strict control of delivery risks.
On the packaging, storage and transportation, with reference to the sophisticated trading rules of the industrial enterprises, DCE has formulated the delivery systems for the “two boards” futures, having made higher requirements for the packaging and labeling of the delivery. First, in order to facilitate the clients’ intuitive understanding of the products, it is required to mark on the products the specifications such as manufacturer, product name, trademark, grade, formaldehyde emission limit level, size, number of pieces, product standard number, address, date of manufacture and QS sign; second, in order to reduce the damage to the corners of the boards caused by collision in the process of transport and storage, it is required to make every 80 pieces a packaging unit for the standard products and every 70 pieces a packaging unit for the alternatives, or a bundle, with reference to the requirements of the national standards in the process of packaging; finally, in order prevent moisture of the boards during storage and transport, it is required to cover the outside of the boards with a layer of moisture-proof plastic sheets. The above requirements will play a positive role in standardizing the trade on the spot market.
In terms of quality inspection, as the production of the fiberboard and blockboard is highly industrialized and professional, the common warehouses are not capable of quality inspection. To ensure that the futures commodities meet the requirements of the contract rules, DCE will designate the third-party inspection agencies as designated quality inspection agencies of the delivery products of the fiberboard and the blockboard futures. DCE will announce the price ceiling for the charges of the designated inspection agencies with the specific charges to be negotiated between the clients and the agencies, and the charges include two parts: inspection fee and sampling fee. The owner of the goods may choose any one of the inspection agencies designated by DCE to complete the inspection of the goods according to their own situations. It is required that the boards for the same owner put into the warehouse in the same batch should be made by the same manufacturer with the same specifications, and should be well labeled and packaged according to the delivery quality standards. In the process of delivery, the boards should be put into the warehouses in bundles and those less than a bundle should be packaged according to the delivery quality standards. Each batch of fiberboards and blockboards put into warehouses should be sampled and inspected viewed as from the same source of samples. According to the national standards, in the spot check of the appearance quality, size and deviation of fiberboard and blockboard, on the basis of the common inspection level I and II (inspection level I for spot check of size and deviation of blockboard) and the acceptance quality limit (AQL) 4.0, the inspection lot unit is set at 3,000 pieces and the boards less than 3,000 pieces shall be calculated as a group of 3,000 pieces.
In addition, according to the detailed delivery rules of DCE, the futures products of fiberboard and blockboard adopt the form of physical delivery, the lump delivery at the delivery warehouse. Before the delivery month, the buyers and sellers may conduct the futures-to-spots delivery with the delivery handling charge at RMB 5 / contract (or about RMB0.01 / piece). Considering that China’s fiberboard and blockboard industries feature scattered production, consumption and trade in sizes, the industrial concentration is moderate and the sizes of the market participants are suitable, DCE has set the delivery unit of the fiberboard and the blockboard futures at 500 pieces, the same as the trading unit, in a bid to avoid the fragmented position holding, which is conducive to the participation of small and medium-sized investors in the futures trading and in line with the actual spot trade of fiberboard and blockboard.
