Posted on 07 Mar 2022
The Dalian Commodity Exchange (DCE), headquartered in Northeast China's Liaoning province, has advised members that it is lifting the charges associated with iron ore futures contracts with close delivery dates from the night trading session on March 7.
In a DCE notice released late on March 3, the exchange announced that from next Monday's night session, the intraday trading fee for iron ore futures contracts for March, April and May deliveries will be raised to 0.04% of the trading turnover, from the 0.02% presently applied. However, the exchange advised that the non-intraday trading fee for these contracts will remain unchanged at 0.02%.
At the same time, the exchange will also increase the intraday trading fees for its coking coal and coke contracts for May deliveries to 0.04% of the trading turnover, from the current 0.02% from the night trading session on March 7.
The latest measures announced by the exchange are in response to the dramatic swings in these related futures contracts recently amid the mixed market for steelmaking raw materials, Mysteel Global understands, reflecting the central government's earlier efforts to stabilize commodity prices.
Source: Mysteel
The most-traded iron ore contract on the DCE for May delivery, for example, had rebounded sharply over the past week, with the contract surging to as high as Yuan 835.5/dmt ($132.1/dmt) during the night session on March 3, nudging very close to the previous high of Yuan 849.5/dmt recorded on February 10.
By the end of the daytime session on Friday, the contract finally closed at Yuan 812.5/dmt, having rallied substantially by Yuan 125.5/dmt or 18% from the settlement price on February 25.
By Friday too, the most-traded coke and coking coal contracts on the DCE for May delivery had strengthened further during the week, with the former closing the daytime session at Yuan 3,585/tonne, up Yuan 294.5/t or 9% from the settlement price on February 25, and the later closing at Yuan 2,868.5/t, up Yuan 283.5/t or 11% over the same period.
Source:Mysteel Global
