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It has been one month since China’s iron ore futures ushered in overseas traders. The iron ore internationalization has shown a smooth start under the care and support of all market participants both at home and abroad.
A market participant said that iron ore futures have maintained a stable development after the implementation of the international business, and its good market liquidity and investor structure have helped overseas clients to carry out the risk management of the global industry chain. Through overseas market cultivation and business promotion, more and more overseas industry clients and investment institutions will participate in the future.
Iron ore futures product is the first listed futures product that has realized opening-up and, till June 3, a total of 51 overseas clients, including such industry enterprises as Glencore and Mercuria, have taken part in iron ore futures trading in only one month. Besides, 26 overseas brokers have completed the filing of 33 groups of commission business through domestic futures companies, thus offering services to more overseas clients.
It is learnt that in the first month of the iron ore internationalization, the market has been stable on the whole, and the futures price has fluctuated within a reasonable range. With regard to transactions, in the first month of the internationalization (May 4 – June 3), the average daily trading volume on one side, the trading volume and the open interests of iron ore futures were 1.37 million contracts, RMB 64.23 billion and 1.1 million contracts, and the average monthly turnover rate was 1.23; the average daily open interest of corporate clients accounted for 39.62%, up by 3 percentage points compared with April, and the market liquidity and the market structure were generally good. In terms of price, in the first month of iron ore internationalization, the maximum price and minimum price of iron ore futures 1809 Contract were RMB 494/ton and RMB 449/ton, presenting a slight fluctuation, and a smooth transition has been seen in the international business of iron ore futures.
