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Dalian Commodity Exchange (DCE) rises to 7th place globally in terms of 2020 trading volume, according to the Futures Industry Association (FIA) rankings released recently.
The FIA statistics collected from over 80 exchanges worldwide include the global market size and rankings. The Chinese mainland’s futures and options trading volume amounted to 6.153 billion lots. The trading volume of DCE reached 2.207 billion lots, up 62.83% from 2019.
In 2020, DCE’s agricultural futures performed quite well, among which five products ended up top 10 of the global agricultural trading volume ranking. Soybean meal, RBD palm olein, corn, soybean oil, and egg ranked 1st, 2nd, 3rd, 4th and 6th respectively. The trading volume of soybean meal futures totaled 359 million lots, ranking 1st[1] for nine consecutive years in the agriculture category; DCE’s RBD palm olein futures that has been opened up to overseas investors since the end of 2020 saw its trading volume last year reach 315 million lots, up 132.59% year on year. In addition, its average daily open interest rose to 513,400 lots, an increase of 22.72% from the previous year.
In terms of industrial products, the trading volume of DCE’s iron ore futures, which was opened up to overseas investors in May 2018, reached 285 million lots in 2020, with the average daily open interest being 923,100 lots, down 4.02% and 3.79% from 2019 respectively, and ranking 3rd in the metal category globally.
In terms of energy products, DCE’s coke and coking coal futures ranked [2] 9th and 21st respectively; the liquefied petroleum gas (LPG) futures and options ranked 11th and 49th respectively. As for other products, the strong performance of DCE’s chemical products have earned them places in the top 20 list. DCE’s polypropylene (PP), linear low density polyethylene (LLDPE), ethylene glycol and polyvinyl chloride (PVC) futures ranked 4th, 5th, 6th, 8th, and 9th; while the PP, PVC and LLDPE options ranked 14th, 15th, and 18th respectively.
The increased liquidity has laid a solid foundation for the DCE to serve the real economy. Enterprises in the soybean processing industry are especially experienced in using futures—over 90% of domestic processing plants use soybean meal futures to manage price risks. Many leading domestic and foreign oils and oilseeds companies have long been involved in RBD palm olein futures trading. The import volume of companies using RBD palm olein futures for hedging accounts for over half of China’s total palm oil import. In 2020, the delivery volume of RBD palm olein futures contracts totaled 103,800 MT. Furthermore, over 1,500 businesses have participated in iron ore futures trading, including over 110 steel mills, over 1,300 trade companies and over 10 mining companies. A number of companies have also set up factory warehouses to directly participate in the delivery of iron ore. The delivery volume for DCE iron ore futures was 1.98 million MT in 2020, second only to 2.21 million MT in 2016, which was a record high.
In 2021, DCE will continue to orient services towards the real economy and align innovation with the global pace. By focusing on three priorities of developing products, driving business with technology, and establishing ecosystems, DCE will accelerate to build a world-class derivatives exchange that integrates futures and physical, synergizes exchange and off-exchange, and connects domestic and overseas markets so as to make further contribution to the real economy.
