On Oct. 13 Dalian Commodity Exchange deputy general manager Wang Yufei said at
the 19th International Oilseed and Oil Conference that, beyond traditional trade
houses, an increasing number of steelmakers are adopting futures. Price-lock
hedging on long orders has moved from isolated cases to a standard model and
basis trading has shifted from pilot to routine. Futures are increasingly used
as benchmarks for production scheduling, procurement and sales. This year
cooking-coal and coke options were launched, bringing core coal–coke–ore
contracts under combined futures and options coverage and further completing the
industry risk-management toolbox; derivatives are becoming an increasingly
important hedge against market volatility.
