Concurrent Regulation by Three Major Futures Exchanges Triggers Down Limit of Steam Coal
Yicai Global
/SOURCE : Yicai
Concurrent Regulation by Three Major Futures Exchanges Triggers Down Limit of Steam Coal

(Yicai Global) Nov. 8 -- Excessive heat in future markets recently, three major futures exchanges in China released restrictive measures concurrently. On Nov. 8, multiple future types slumped with steam coal facing a down limit.

Today, the Shanghai Futures Exchange, Dalian Commodity Exchange and Zhengzhou Commodity Exchange successively announced increased handling charges and future margins involving seven types of reinforcing bar (rebar), natural rubber, steam coal, glass, methanol, coke, and coking coal.

A notice by the Zhengzhou Commodity Exchange announced that the daily handling charge for the close position of steam coal will be adjusted to CNY30 per (USD4.4) per deal as of the opening of today's night market. As of the opening of the night market on Nov. 11, if a customer has over 8,000 deals within a single contract of steam coal on that day with the daily close-position deals amounting to over 2000, this customer will be charged another CNY30 per deal for handling on the day of such contracts.

The impact of this measure drove afternoon steam coal to a down limit with the falling rate of coke up to over three percent. Rising rates for rebar, iron ore and coke dropped.

After yesterday's market closed, coking coal, coke and rebar in the commodity futures market hit limit up collectively. Coking coal rose by almost 70 percent over two months ago.

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