Xinhua.net: Nickel, Tin Futures Delivery is Completed Successfully for the First Time in SHFE

Updated on: July 22, 2015

Reported by Qu ShaoHui, Journalist from Xinhua.net

The first nickel futures contract NI1507, first tin futures SN1507 completed delivery in Shanghai Futures Exchange (SHFE). Among them, the delivery of nickel futures was 2,959 tons, delivery amount was 255 million yuan (one side), delivery rate was 0.03%; tin futures delivery 1,330 tons, delivery amount 144 million yuan (one side), delivery rate 0.44%.

It is learned that, the parties involved in the delivery include nickel, tin smelting enterprises, traders and downstream consumer companies. July 15 is the last trading day of the contract NI1507 and SN1507. On the July 16, the buyer will declare the intention and the seller will pay the standard warehouse receipt; on the July 17, the Exchange shall allocate standard warehouse receipt; on the July 20, the buyer makes payment, collects receipt and seller collects money; on the July 21-22, the seller submitted VAT invoice, and the whole delivery process was completed successfully. The first batch of electrolytic nickel warehouse receipt was made in No.137 warehouse of Zhongchu at Dachang storage yard on May 11, totaling 876 tons; the first batch of tin ingots warehouse receipt was made in No.137 warehouse of Zhongchu at Dachang storage yard on May 8, totaling 42 tons. SHFE and the designated delivery warehouse paid high attention and closely cooperated to ensure the smooth progress of warehouse registration. The first delivery standard warehouse of nickel futures was 2,959 tons, concentrated in three delivery warehouses in Shanghai area. The first delivery standard warehouse receipt 1330 tons of tin futures is distributed 997 tons for Jiangsu, 301 tons for Guangdong and 32 tons for Shanghai.

Physical delivery is an important mechanism to realize connection between futures price and spot price, and it is also one of the key links to verify the successful operation of futures varieties. The first delivery of nickel and tin futures was successfully completed, which lay the foundation for promoting the function of the economic development of the service entities of nickel and tin futures. Buyers and sellers through participating in delivery, are better familiar with the futures market trading, settlement, delivery system and processes, to accumulate experience for further use nickel, tin futures market price risk management and serve production and operation.

Since the successful listing of nickel and tin futures on March 27 this year, the market has been active in transaction, the domestic and foreign prices are closely linked, which has attracted high attention both at home and abroad and the wide participation of investors. As of July 22, the total volume of nickel futures was 39.1309 million lots, with a cumulative turnover of 3.82 trillion yuan, secondary only to copper among non-ferrous metals. The total volume of tin futures was 0.6648 million lots, with a total transaction amount of 78.146 billion yuan. The listing of nickel, tin in futures market has a positive meaning in promoting the formation of market-oriented pricing mechanism of nickel, tin industry, providing effective risk management tool for related industry chain enterprises, and promoting sustainable development of the industry. We will pay close attention to the dynamic of domestic and foreign markets and protect the stable operation and sustainable development of nickel and tin futures market.