BEIJING, May 6 (Xinhua) -- The trading scale grew rapidly one year after overseas investors began to trade in domestic iron ore futures on the Dalian Commodity Exchange (DCE), according to Shanghai Securities News.
As the world's largest importer of iron ore, China opened the DCE iron ore futures to international investors in May 2018, providing them effective price signals and hedging tools.
By the end of April, 125 overseas investors opened accounts to trade the contracts, while trading volume climbed gradually since last May.
In the first four months of 2019, foreign investors' trading volume surged by 637 percent compared with the four-month period from May to August 2018, while their combined position of the contracts jumped by 264 percent.
"Since last May, trading of iron ore futures has become more active while futures market participants have become more diversified," said Cai Yongzheng, director of the securities investment department of Nanjing Iron and Steel.
According to rough statistics from DCE cited by the newspaper, the number of investors that have an international background in iron ore futures trading has exceeded 250, and their combined trading volume accounted for 19 percent of the total since the launch of the contracts.
The most active iron ore contract for September delivery dipped 8.5 yuan (about 1.26 U.S. dollars) to open at 626 yuan per tonne on Monday.
A single purchase
