Restrictions on trading positions of the hottest i

2022-10-15
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Iron ore trading position restrictions improve brand delivery access closer to the market

in the past month, the trading position scale of iron ore futures market has increased significantly. Behind this is the fact that steel enterprises have chosen the futures market to avoid risks in the face of complex and changing market situation. The futures contract system, which is reasonable, perfect and close to the spot market, determines the effective play of the hedging function of futures. In this regard, the big commercial exchange is actively promoting the iron ore brand delivery system and the discount, so as to improve the representativeness of futures prices

according to public data, on October 26, the unilateral trading volume and position of iron ore futures were 570900 and 548400, respectively, up 85% and 33% from a month ago (September 25)

the increase in the size of iron ore trading positions is a concrete manifestation of using futures instruments to avoid the risk of price fluctuations for spot enterprises. How to provide hedging services for these spot enterprises in the delivery system has become an important part of the work of the exchange. The experts of Bayer materials technology in the industrial products business of Dashang Institute have provided many creative options for the future of electric vehicles. The relevant head of the Department recently said at the "2019 Summit Forum on the development situation of steel industry chain" that the officials of LEGO company of Dashang Institute had previously said that they were studying the promotion of iron ore brand delivery system. Previously, in September 2017, the exchange launched a new delivery quality standard close to market changes

according to the person in charge, the overall idea and process of iron ore futures brand delivery are: the exchange announces the access brand and increases the discount; When the seller applies for registration of the warehouse fixed support indispensable form, it is necessary to ensure that the brand of the goods is within the scope of the access brand, and apply for registration of the warehouse form through qualified suppliers, and provide relevant supporting documents; When the buyer cancels the warehouse receipt and leaves the warehouse, the qualified supplier must provide the above documents to the owner; If there is any objection to the brand, the owner of the goods can file a dispute with the exchange, which will be decided by the brand delivery Committee; If the brand is judged to be false, the qualified supplier must compensate the owner for the difference

in the setting of access brands and premium, in order to make the delivery products meet the needs of most steel mills, the delivery products are limited to the brands with high acceptance of steel mills. These mainstream mining access brands are characterized by high quality, sufficient supply and high liquidity. Among them, import volume and other indicators are mainly considered for imported mines, while domestic mines need multiple indicators such as comprehensive output and sales volume

compared with the current frequently used materials,

through the setting of access brands, the delivery target can be limited to mainstream minerals. As there is also a price difference between mainstream minerals, and the price difference changes with the market, it may lead to the switch and offset of futures targets in the access brands. For this reason, based on the current quality premium, Dashang will set up a brand premium, which not only reflects the quality value, but also reflects the supply, liquidity, stability and other factors, which is conducive to the long-term stability of futures prices in a brand with the highest market acceptance

meanwhile, the brand delivery system will introduce qualified suppliers. In case of brand fraud, after the buyer's customer accepts the warehouse receipt, the qualified supplier will compensate the buyer for the difference. Establish a brand delivery Committee, which is responsible for investigating and collecting evidence of brand disputes, giving judgment results and valuing goods

"The purpose of implementing the iron ore brand delivery system is to delimit the delivered products within the scope of relevant mainstream brands, reasonably reflect the price difference of different minerals, and make the representativeness and stability of futures prices more prominent. Under the background of the internationalization of iron ore futures, the brand delivery system will better play the function of futures, help promote the price of iron ore futures to become a globally recognized price benchmark, and build a global market based on iron ore futures Trade mechanism. " The person in charge pointed out that in the next step, Dachang exchange will further demonstrate the feasibility and implementation details of the plan with all parties in the market, launch the brand delivery system as soon as possible, and facilitate domestic and foreign industrial enterprises to participate in futures trading and delivery

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