China's Dalian Commodity Exchange (DCE) officially launched coking coal options on Friday, marking a new step in enhancing futures market services for the coal-coke-steel industrial chain and the real economy.
As a fundamental raw material for the steel industry, coking coal plays a vital role in ensuring the steady development of steel and related sectors. The listing of coking coal options signals further improvement in China's derivatives market service system.
"After the listing of coking coal options, these instruments will synergize with the existing coking coal futures, coke futures, and iron ore futures and options. This will further improve the risk management tool system for the coal-coke-steel industrial chain, provide more refined and diverse risk management solutions for enterprises, and safeguard their stable and sound operations," said Hu Gangxu, director of the futures derivatives department of Dalian Commodity Exchange.
China is the world's largest producer and consumer of coking coal. Its prime coking coal output accounts for more than 50 percent of global production, while consumption represents over 60 percent of the world total.
China launches coking coal options
