DCE’s night trading for coke attracts interest; iron ore, coal set to follow

A total of 158,000 lots, or 15.8 million tonnes, of coke futures on the Dalian Commodity Exchange (DCE) were traded during the first night trading session late on Friday July 4.

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The volume was 40.2% of what were traded during the daytime sessions on Friday, and open interest went up to 393,800 lots, according to data from the exchange.

The launch of the night trading of coke futures, together with that of palm olein, is a move by the Chinese exchange to “improve competitiveness” and “expand [its] influence on the global stage”.

The extended hours are targeted initially at domestic investors in China rather than potential participants abroad, a DCE official told Steel First.

“Chinese participants will be able to compare prices on foreign exchanges and make their decisions at the same time about their positions on the DCE,” he said.

He added that while overseas investors are not able to participate due to trading being conducted in yuan, trades on the DCE could serve as indicators for the markets and give China a bigger say in the pricing of related commodities.

“The coke contract is a pilot scheme, and we look to extend night trading to coking coal and iron ore very soon,” the official said.

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