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“The debut is planned for next Friday, October 18,” a source close to the north-eastern exchange told Steel First.
Six ports in northern China – Lianyungang, Rizhao, Qingdao, Tianjin, Jingtang and Caofeidian – are the designated warehouses for possible deliveries.
“About 400 million tonnes of iron ore on the market are of the contract’s standard and deliverable, comprising 300 million tonnes imported ore and 100 million tonnes of domestic ore,” the source said.
DCE is confident about the performance of the new contract, and is looking at a 50% industry participation after it is well established.
Currently, DCE hosts two other steel-related contracts – coke and coking coal. It also hosts agricultural and plastic futures contracts.
The world’s first physically delivered iron ore futures contract is set to be launched next week on the Dalian Commodity Exchange in China.