Column: After three years of exports China is now short of lead
The global lead market has bifurcated since the start of June, with Shanghai prices significantly outperforming that of the LME.
China’s Dalian Commodity Exchange said on Thursday it had added new deliverable brands for its benchmark iron ore futures, while adjusting premiums and discounts for existing deliverable brands.
The newly added deliverable brands include Benxi Steel Concentrate, IOC6, Kumba and Agglomerate Concentrate, the exchange said in a statement late Wednesday night, adding that their premiums and discounts were set at 0 yuan per tonne, -20 yuan ($3.09) per tonne, 10 yuan per tonne and 65 yuan per tonne, respectively.
The new deliverable brands and the adjusted premiums and discounts will be applied to the February 2022 futures contract and subsequent contracts.
The Dalian exchange in December had proposed regularly adjusting premiums and discounts for iron ore futures and adding deliverable brands following complaints from steel producers that speculators fuelled market rallies.
The most traded iron ore futures contract surged 54% in 2020 and has mostly been hovering above 1,000 yuan a tonne in 2021.
($1 = 6.4822 Chinese yuan renminbi)
(By Emily Chow and Min Zhang; Editing by Amy Caren Daniel)
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