China’s First Coal Futures Contract Already Popular

Reuters reported that traders and investors have embraced China’s first coal futures contract, which debuted today. It emerged as “one of the most heavily traded contracts on the Zhengzhou Commodity Exchange.”

As quoted in the market news:

Top miners Shenhua Group, China Coal Energy Co , Inner Mongolia Yitai Coal and coal traders have all indicated their interest in trading Zhengzhou’s physical delivery-backed contract, sources said earlier this month.

‘The perspective for the coal futures contract is quite rosy,’ said one coal analyst in Singapore, who declined to be named because he was not authorised to speak to the press.

Trading of thermal coal futures could rise to several times the yearly physically traded volumes of around 3 billion tonnes as the contract attracts more institutional investors, he added.

Click here to read the full Reuters report.