Dalian exchange studying new contracts of North-east Asia crude to shipping futures: state media

[BEIJING] China's Dalian Commodity Exchange will develop commodities derivatives related to trade, shipping and logistics in North-east Asia, including studying the feasibility of a North-east Asia crude oil futures contract, an exchange official told a state-run media house on Monday (Dec 6).

"(The Dalian exchange will) promote the formation of a new international and integrated development of bulk commodity and derivatives markets in Northeast Asia centered on Dalian," Ran Hua, the exchange's secretary, said in an interview with state-run Shanghai Securities News.

China currently has crude oil futures and options on the Shanghai International Energy Exchange, which is open to foreigners for trade.

Dalian's Ran said the exchange would "promote the listing" of other products including recycled steel raw materials, pure benzene, sulfur, glacial acetic acid, petroleum coke, dried chili, ethanol and logs.

Additionally, the exchange will focus on the research and development of container capacity futures and study the feasibility of listing more live animal husbandry products. It will accelerate the listing of options contracts for futures products that have a mature market, focus on cash settlement, and explore developing structured futures and options products.

Ran did not provide any other details including time frames on when the products would be listed.

The Dalian exchange is known for its benchmark iron ore futures, which along with the palm oil contract is accessible to foreign investors.

The exchange launched live hog futures - China's first live-animal physical-delivery contract - in January this year, and has energy products like coke, coking coal and liquefied petroleum gas futures.

REUTERS