Industry News

China's Dalian exchange proposes halving some iron ore trading position limits

Views : 191
Update time : 2020-12-22 18:58:25

China's Dalian Commodity Exchange has proposed cutting some trading position limits by more than half for its iron ore futures after both the most traded contract and spot prices soared to records on Monday.

In a statement issued late on Monday, the exchange said it was proposing changing position limits for non-futures company members to either 15,000 or 20,000 lots from the current 40,000 lots. It said the proposed reductions were designed "to strengthen the risk management of iron ore futures".

The bourse said in the statement it's soliciting public opinion on the changes until Dec. 23.

Iron ore futures prices have surged by over a quarter value so far this month on a bullish demand outlook and concerns about supply. Steelmakers, industry association and the bourse had called for rational investments and for scrutiny on possible irregularities in the market.

The exchange already tightened single-day open positions on its most traded iron ore contract twice since the start of December to 5,000 lots as prices soared beyond market expectations.

It said on Monday that it would further limit open positions for all iron ore futures to 2,000 lots from the Dec. 22 trading day.

Related News
Read More >>
Overview of China's primary aluminium production in December 2024 and forecast for January 2025 Overview of China's primary aluminium production in December 2024 and forecast for January 2025
Jan .14.2025
Overview of China's primary aluminium production in December 2024 and forecast for January 2025
Hydro eyes 100% ownership in battery-recycling JV Hydrovolt Hydro eyes 100% ownership in battery-recycling JV Hydrovolt
Jan .14.2025
Hydro eyes 100% ownership in battery-recycling JV Hydrovolt
Colombia’s green aluminium project to lead charge in sustainable industrialisation Colombia’s green aluminium project to lead charge in sustainable industrialisation
Jan .14.2025
Colombia’s green aluminium project to lead charge in sustainable industrialisation
Alba and Ma’aden call off strategic merger talks Alba and Ma’aden call off strategic merger talks
Jan .14.2025
Alba and Ma’aden call off strategic merger talks