BEIJING – The Dalian Commodity Exchange (DCE) has officially launched trading for Chinese log futures on Monday, with log options set to begin trading on Tuesday. This new development is expected to significantly enhance the futures market’s capabilities, providing essential tools for the timber industry.
The introduction of log futures and options aims to expand the depth and breadth of the futures market, offering a robust mechanism for enterprises in the timber sector to manage price risks effectively. According to DCE Chairman Ran Hua, the log market has experienced considerable price fluctuations in recent years due to various influencing factors. He emphasized that there is a solid foundation for the development of a log futures market, driven by strong demand for risk hedging within the industry.
He Hui, chief economist at the China Federation of Logistics and Purchasing, highlighted that these new listings will promote open and transparent market pricing, bolster China’s position in the global timber industry, and encourage industrial upgrades. Furthermore, he noted that this initiative would inject new momentum into the sustainable development of the timber sector.
The primary trading focus of the DCE’s log futures and options markets will be coniferous logs, which are widely used in various applications, including architectural timber, building formwork, wood panel processing, and furniture manufacturing. This strategic move is anticipated to facilitate better pricing mechanisms and support the overall growth of the timber industry in China.
Related Topics:
