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Dalian Commodity Exchange (DCE) holds the iron ore futures seminar in Tokyo, Japan, on July 23. Over 50 representatives from the China Securities Regulatory Commission (CSRC), financial institutions at home and abroad, and iron and steel enterprises in Japan have in-depth talks.
DCE CEO Wang Fenghai makes a brief introduction on DCE, the operation of the iron ore futures market, and the result of its internationalization development. He says that China and Japan are the main iron ore importers in the world, and the open and transparent iron ore price is the common demand of the iron and steel industry in the two countries. The iron ore futures has presented the stable market operation, constantly improved the client structure, gradually increased the industry participation, and well played the functions of the market since its listing in 2013. Up till now, DCE’s iron ore futures has become the largest iron ore derivatives in the world, and it is able and responsible to meet the risk management demand of the global iron and steel industry chain and better serve the sound development of the iron and steel industry in the world.
Afterwards, a CSRC official delivers a speech on the Development and Regulation of the Futures Market in China. Relevant guests have in-depth discussions on the internationalization process of the DCE iron ore futures, the physical delivery system for iron ore futures, and how entity enterprises make use of the futures market to conduct risk management.
Representatives from Japanese steel plants and trading companies say that China and Japan are both large iron and steel production and consumption countries, and they are important trading partners in the iron and steel industry. A fair and transparent iron ore guiding price is the key to ensure the sound development of the iron and steel industries of the two countries and the world. The seminar has allowed representatives from Japanese enterprises to learn about the operation of the iron ore futures in China and its internationalization business and study the typical cases and practical experience of entity enterprises conducting risk management in the futures market. In the future, they will pay close attention to the growth of the DCE iron ore market, study the way of taking part in the Chinese futures market, and explore the new method of avoiding risks through derivatives.
Smooth and orderly operation has been seen in the Chinese iron ore futures market since its opening-up in May 2018. Till the first half year of 2019, the average daily trading volume and open interest have been 1.16 million contracts and 0.86 million contracts respectively, and over 130 overseas clients from 13 countries and regions such as Hong Kong, Singapore, Britain and Australia have opened accounts. With the internationalization of iron ore futures and the construction of a domestic mixed iron ores center in China, remarkable increase has been recorded in the bonded iron ore trade to Japan from China, and some Japanese enterprises have shown strong willingness to learn about and take part in the Chinese futures market. And the seminar on iron ore futures targeted to Japanese industry clients will make more Japanese iron and steel industry enterprises pay attention to and involve in the Chinese futures market, further improve the market investor structure, facilitate the functioning of futures, and propel the internationalization of the futures market.
