SHANGHAI--Chinese market players will soon be able to trade two energy futures contracts, according to the country's two major commodity exchanges.
Thermal coal futures will start trading on the Zhengzhou Commodity Futures on Sep. 26, while bitumen futures will have its debut on the Shanghai Futures Exchange on Oct. 9.
Thermal coal is primarily used in power generation. The introduction of the futures contracts is expected to help downstream users, such as utility companies and aluminum producers that have their own power plants, hedge price volatility and manage risks, analysts said.
Soft domestic demand and industrywide restructuring has forced the closure of many small mines and shaken up the industry. The value of China's benchmark Bohai-Rim Steam-Coal Price Index has dropped by 16% so far this year. It fell 22% in 2012 from a year earlier.
Write to Yue Li at yue.li@wsj.com
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(END) Dow Jones Newswires
September 23, 2013 20:55 ET (00:55 GMT)
Copyright (c) 2013 Dow Jones & Company, Inc.
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