NATIONAL BUSINESS DAILY: 1ST STANDARD WAREHOUSE RECEIPT OF HOT-ROLLED COIL FUTURES GENERATED

Updated on Jun 17,2014

June 17, 2014

By Xia Bing

It is learnt from the Shanghai Futures Exchange (SHFE) on June 16 that the first batch of hot-rolled coil futures delivery goods has been successfully put in storage.

On January 24, 2014, the China Securities Regulatory Commission approved the listing of hot-rolled coil futures. The hot-rolled coil futures were listed for trading on March 21 and have maintained steady operation over the past two months. Statistics from the SHFE show that altogether 1.2971 million contracts and the turnover of RMB43.453 billion have been achieved over the past 58 trading days till June 16, 2014.

It is learnt that the first batch of delivery goods of the SHFE’s hot-rolled coil futures has been successfully put into the certified delivery warehouse of Sinotrans Eastern Co., Ltd. in Shanghai, and the first batch of warehouse receipts of 300 tons has been generated. It is learnt that the first contract of hot-rolled coil futures, HC1407, is to be traded for the first time in the middle of July 2014.

The SHFE said that at 4 o’clock on the morning of June 5, a cargo ship from Dandong, Liaoning Province, with 300 tons of “Changbaishan” hot-rolled coil successfully moored at the Songhu Wharf of Shanghai Port, and the warehousing formalities were finished and the standard warehouse receipts were generated on June 16, marking the successful registration of the first standard warehouse receipts of hot-rolled coil futures.

It is introduced that the applicant of the first standard warehouse receipt was a risk management subsidiary of a futures company. According to the person in charge of the company, its application for registering the first standard warehouse receipt is to get familiar with and learn about the delivery process, cost, and possible problems that might be encountered in the delivery process.

Futures analysts said that as the long validity of hot-rolled coil warehouse receipts will institutional investors with delivery basis to participate in calendar spread arbitrage.