Exploring the Innovative Path of Serving the Iron and Steel Industry

It is reported that DCE has been exploring innovative ways to serve the iron and steel industry, promoting the opening of iron ore futures to the outside world, providing a wealth of tools and channels for the management of price risk in iron and steel enterprises.

Since the listing of DCE iron ore futures, the market has been running smoothly and orderly, the customer structure has been increasingly optimized, the industry participation has been gradually increased, and the market function has been playing well. It is mainly reflected in the following aspects:

First, the market remains highly liquid. In 2018, the average daily turnover of DCE iron ore futures was 97.32 million tons, providing sufficient depth for steel enterprises to carry out hedging and other related operations. Second, leading enterprises actively participate. By the end of 2018, DCE iron ore futures have participated in more than 1,000 industrial customers, and 8 of the top 10 domestic steel enterprises have participated in the futures market. Third, the spot price correlation is high, hedging effect is significant. By the end of 2018, iron ore spot price correlation as high as 0.98; The correlation between iron ore futures price, platts index and SGX iron ore futures price is above 0.95. Iron ore futures prices have gradually been recognized by the community, and has become an important reference for spot trade and index compilation at home and abroad.

In terms of internationalization, on May 4, 2018, DCE iron ore futures was successfully opened to the outside world, which is the first listed futures variety in China to be introduced to overseas traders. It is of great significance to further improve the customer structure of iron ore futures and give play to the function of iron ore futures price discovery and risk management.

It is learned that by the end of 2018, 113 overseas customers from 10 countries and regions have opened accounts in DCE, and 78 of them have participated in transactions, with a turnover of about 234 million tons. In addition to cargill, glencore, trafiger and other top five global trading companies, some companies from Japan and South Korea have participated in iron ore futures trading as domestic registered subjects or through domestic industrial clients. Rough statistics, the current iron ore futures market in the background of foreign enterprises transactions, positions for more than 5%.

In addition, in order to further expand the path of futures market to serve the real economy, DCE has continuously carried out innovation pilots such as otc options and spread trade in recent years. Up to now, DCE has supported 22 pilot projects of otc options for coking coal, coke and iron ore, and 8 pilot projects of basic trade for iron ore. Many representative enterprises such as HBIS, Ansteel, Fujian Sangang and Guangxi Shenglongfeng Metallurgy have participated in these projects. In 2018, HBIS and Cargill signed an agreement to purchase 2 million tons of iron ore and 600,000 tons of iron ore within the year through futures pricing. In 2018, HBIS's purchase of 600,000 tons of iron ore saved its procurement cost about 14.5 million yuan, which has attracted wide attention in the industry.

continue to do a good job serving the steel industry

The person in charge said that in the next step, DCE should do the following work:

First, further promote the optimization of the contract system. In 2019, DCE will focus on serving the needs of the steel industry, dedicate itself to continuously improving the design and institutional arrangement of iron ore contracts and listing iron ore options as soon as possible. Further expand the bonded delivery area, and set up the bonded delivery warehouse in key regions of the country after improving the relevant system of bonded delivery; We will accelerate the resolution of the problem of inactive and discontinuous contracts in recent months, continue to promote the development of market makers in iron ore trading, attract more industrial customers to participate, and constantly meet the market's demand for contract and institutional continuity. Actively promote the improvement of iron ore brand delivery system, and further enhance the representativeness and stability of iron ore futures prices.

Second, we will deepen the opening up of iron ore to the outside world. The first is to optimize and improve the trader suitability system, and improve the convenience on the basis of good entry level. Second, strengthen the coordination of rules and systems to further improve the efficiency of market funds. Third, we will continue to open up and make innovations to improve the efficiency and quality of market operations.

Third, continue to promote iron ore trade on basis. In view of the flexible and practical trade pricing method based on futures price, which helps to protect the interests of enterprises and enhance the pricing initiative and voice of steel enterprises, DCE will continue to support industrial chain entities to carry out pilot trade based on iron ore futures price.

In the next step, DCE will continue to strengthen cooperation with all parties, do a good job in serving the steel industry, and jointly promote the steel industry to make steady and long-term progress in an increasingly complex business environment.

(China metallurgical news)

探索服务钢铁产业的创新路径
据介绍，一直以来，大商所不断探索服务钢铁产业的创新路径，推动铁矿石期货对外开放，为钢铁企业管理价格风险提供了丰富的工具和渠道。
大商所铁矿石期货品种自上市以来，市场运行平稳有序，客户结构日益优化，产业参与度逐步提高，市场功能发挥情况良好。主要表现在几个方面：
一是市场保持较高的流动性。2018年，大商所铁矿石期货日均成交9732万吨，为钢铁企业进行套期保值等相关操作提供了足够的深度。二是龙头企业积极参与。截至2018年底，大商所铁矿石期货累计参与产业客户1000余户，国内前十大钢铁企业中有8家参与了期货市场。三是期现货价格相关性高，套保效果显著。截至2018年底，铁矿石期现货价格相关性高达0.98；铁矿石期货价格与普氏指数、新交所铁矿石期货价格的相关性在0.95以上。铁矿石期货价格逐步得到社会各界的认同，已成为国内外现货贸易和指数编制的重要参考。
在国际化方面，2018年5月4日，大商所铁矿石期货成功实现对外开放，这是中国第一个已上市期货品种引入境外交易者，对进一步完善铁矿石期货客户结构、发挥铁矿石期货价格发现和风险管理功能具有重要意义。
据了解，截至2018年底，已经有来自10个国家和地区的113个境外客户在大商所开户，其中78户参与了交易，成交量约2.34亿吨；除嘉吉、嘉能可、托克等全球前五大贸易企业早已经参与铁矿石期货交易外，日本、韩国的一批企业或以境内注册主体身份、或通过境内产业客户代理的方式也参与了铁矿石期货交易。粗略统计，目前铁矿石期货市场上外资背景企业的成交、持仓占比已超过5%。
此外，为进一步拓展期货市场服务实体经济的路径，大商所近年来持续开展了场外期权和基差贸易等创新试点。截至目前，大商所共支持开展了22个焦煤、焦炭、铁矿石场外期权试点项目和8个铁矿石基差贸易试点项目，河钢、鞍钢、福建三钢、广西盛隆冶金等很多代表性企业都参与了进来。2018年，河钢和嘉吉以期货定价的方式签署了意向采购200万吨、年内采购60万吨的铁矿石采购协议。2018年，河钢采购的60万吨铁矿石为其节约采购成本约1450万元，在业内引起了广泛关注。
继续做好服务钢铁产业工作
该负责人表示，下一步，大商所要做好以下几个方面的工作：
第一，进一步推动合约制度的优化。2019年，大商所将紧紧围绕服务钢铁产业需要，致力于不断改进和完善铁矿石合约设计、制度安排，尽快上市铁矿石期权；进一步扩展保税交割区域，在对保税交割相关制度进行不断完善后，在全国重点区域设立保税交割仓库；加快解决近月合约不活跃、活跃合约不连续问题，继续推进铁矿石交易做市商的发展，吸引更多产业客户参与，不断满足市场对合约和制度连续性的需求；积极推进完善铁矿石品牌交割制度，进一步增强铁矿石期货价格的代表性、稳定性。
第二，深度推进铁矿石对外开放工作。一是优化完善交易者适当性制度，在把好入门关的基础上提高便利性。二是加强规则制度协调，进一步改善市场资金使用效率。三是坚持开放创新，不断提高市场运行效率质量。
第三，持续推广铁矿石基差贸易。鉴于以期货价格为基准的贸易定价方式灵活实用，有助于保障企业利益，提升钢铁企业的定价主动性和话语权，大商所将继续支持产业链实体企业开展基于铁矿石期货价格的基差贸易试点。
下一步，大商所将继续加强与各方合作，做好服务钢铁产业的工作，共同促进钢铁产业在日益复杂的经营环境中行稳致远。（中国冶金报 何慧平）