Research is under way to promote rolling delivery of coking coal and coke

At the "China Coal and Coke Industry Congress 2019" held on August 22, Li Hua, deputy director of the Industrial Development Department of Dachang, said that next, Dachang will study and introduce rolling delivery system for coke and coke varieties to promote warehouse receipts circulation, expand delivery sources, and timely adjust coke delivery locations according to trade flows.

It is known that due to the long listing time of coal coke varieties and the great changes in the spot market, the major commercial institutes are studying and optimizing the coal coke contract system to improve the convenience and enthusiasm of the entity enterprises to participate in futures trading. According to Chen Wei, a senior expert of

Dalian Business Institute, coke futures market has been trading actively since this year. In the first half of the year, the average daily turnover and position of coke futures were 248,000 hands and 187,200 hands respectively, which increased by 14.76% and 21.17% respectively. The turnover rates of coking coal and coke futures remain at the reasonable levels of 1.32 and 0.86, respectively. From the market structure, in the first half of the year, the proportion of coking coal and coke corporate customers holding positions was 40% and 33%, respectively, which was 1.3% and 3.9% higher than the same period last year. The market structure was further optimized. In terms of delivery, the main delivery areas of coke coal and coke futures are gradually shifting with the change of the direction of spot trade.

Specifically, as of 1907, coking coal futures had delivered 40,800 hands, equivalent to 24.448 million tons of spot, with a total delivery value of 2.228 billion yuan. Since 2017, the delivery volume of Tianjin Port has shrunk to 6%. The delivery area gradually inclines to Tangshan area, including Jingtang Port and Caofeidian Port. At the same time, coke futures delivered 25730 hands, equivalent to 25.773 million tons of spot, with a total delivery value of 3.942 billion yuan. Since 2017, coke delivery has gradually shifted from Tianjin Port to Rizhao Port and Qingdao Port. The proportion of coke delivery in Tianjin Port has decreased to 33%, while that in Rizhao Port and Qingdao Port has increased to 22% and 17%.

"In 2011 and 2013, big business firms listed coke and coke futures successively. Coal coke varieties have been on the market for a long time, and the spot market has changed greatly, from the quality structure, supply and demand structure to the flow of trade. Chen Wei introduced that in view of the above situation, the change of delivery area and storage capacity, the next step will be to adjust the contract system in order to adapt to the development of the market.

China Securities Journal reporters learned at the meeting that in 2018, Dachang adjusted the quality standard of coke futures delivery, including positioning the standard of coke coal delivery at a lower intensity, for reducing ash and sulfur, enhancing the strength (CSR), reducing ash content, expanding the scope of sulfur content and increasing after coke reaction of test coke oven. The maximum reflectance index of vitrinite is close to the production needs of enterprises. Relevant market participants said that the new standard for coking coal delivery has been implemented in the 1907 contract and has been tested by the market. The CSR of delivered coking coal is in the range of 60%-65% and the sulfur content is in the range of 0.6%-0.8%. The delivered coking coal has the characteristics of low sulfur, medium and high strength, and the market acceptance is obviously improved.

Chen Wei also introduced the rolling delivery system, which is more concerned by the market. It is reported that the big business institute is studying to promote rolling delivery of coke and coke, that is, between the first trading day of the delivery month and the last trading day, the seller's customers who hold standard warehouse receipts and one-way warehouse selling in the delivery month take the initiative to propose, and the exchange organizes the matching parties to complete the delivery at the prescribed time. The rolling delivery of coke and coke shall be governed by general provisions and practices such as rolling delivery settlement price, delivery application and matching, and shall not change or adjust the existing rolling delivery system itself. It is reported that rolling delivery can promote the circulation of warehouse receipts, expand the supply of delivery goods, effectively alleviate the delivery pressure of coke and coke futures, and solve the shortage of storage capacity, transportation difficulties and supply in delivery month. After the buyer receives the warehouse receipt in advance, the warehouse receipt can be sold accordingly, so that the warehouse receipt can enter the delivery link again and realize the circulation of the warehouse receipt. The seller can apply for rolling delivery every day after entering the delivery month, keep the goods in stock and recover the money in advance, thus reducing the whole market delivery cost.

In addition, the change of coke spot flow in recent years has changed the futures benchmark price, and the storage capacity of Xinjin Port Distribution Center may also be tight. For this reason, the big business institute has carried out a comprehensive investigation and Research on the trade flow direction of the coke spot market, demonstrating and researching the coke futures delivery area, spot delivery base area and non-standard factory and warehouse rise and discount water. In the future, it will adjust the coke base delivery area and location rise and discount water according to the actual situation of the spot market, so as to conform to the coke trade flow direction. Change to meet the needs of real enterprises to participate in futures.