On July 2, Shanxi Coking Industry Association and Dalian Commodity Exchange inked an agreement for the launch of China's first coke futures contract within the current year.
Shanxi Province is the most important coke production base in China. In 2008, coke production in Shanxi totaled 82 million mt, accounting for 26 percent of the total production in China, with its coke exports reaching 6.7 million mt, covering 57 percent of the country's total export volume.
According to the agreement, Shanxi Coking Industry Association will supply Dalian Commodity Exchange with the relevant data regarding the spot market and prices, and will offer help in designing the coke futures contract and its specifications; meanwhile, Dalian Commodity Exchange will provide Shanxi Coking Industry Association with the necessary technical support, training and relevant information, and it will also provide support for qualified Shanxi-based coking enterprises to serve as designated warehouses for deliveries of coke within the scope of the futures contract.
The preliminarily-determined locations for coke deliveries are Tianjin, Lianyungang in Jiangsu Province, Rizhao in Shandong Province, Tangshan, Xingtai and Zibo in Hebei Province; and Taiyuan, Jiexiu and Hongdong in Shanxi Province.