(Adds details on Shanghai INE and SGE adjustments)
BEIJING, April 8 (Reuters) – China’s commodity exchanges have deployed measures, ranging from increased margin requirements and trade limits to a complete cessation of trade, to try to maintain market stability as the coronavirus panic takes over the world.
Below is a list of some of the measures taken, affecting the trade in everything from eggs to gold among the world’s largest consumer of commodities.
CRUDE OIL / RUBBER * The Shanghai International Energy Exchange (INE), in response to the collapse in world oil prices, increased the trading margin of its crude oil futures contract to 11% from settlement on March 11 and increased the trading limit to 10%. from March 12. * The INE has announced that it will waive the delivery costs of its TSR 20 crude oil and rubber futures from April 10 this year to January 8, 2021 to ease financial pressure on market players. * The Shanghai Futures Exchange (ShFE) increased the trading margin on TSR 20 rubber futures contracts from 11% to 10% after the March 23 settlement and raised the trading limit from 8% to 9%. * The Shanghai INE said it would raise the margin requirement for the May contract on crude oil futures to 15%, effective from the April 14 settlement.
SHFE * ShFE said on March 13 that it is increasing trade margins and limits on a large number of commodity futures, including base metals, steel rebar, coils hot rolled steel and fuel oil. * He said the trade margin for aluminum, zinc and lead futures would be further increased to 10%, compared to 8% after the March 23 settlement, while the trading limit on these contracts would be increased at 8% instead of 6%. * The stock market said the trading margin for its copper contract would be further increased from 8% to 10% and from 6% to 8%. The margin requirement and limit for tin have also been raised to 10% and 8%, respectively, said ShFE. * The stock exchange has announced that it will waive delivery charges for 16 products – including base metals, steel, gold, silver and fuel oil – from April 10 to January 8, 2021
PRECIOUS METALS * The Shanghai Gold Exchange (SGE) announced on March 16 that it will increase margin requirements and trading limits for gold and silver contracts after large price swings. * The stock market said it would impose a one-day halt on trading on its Ag (T + D) silver contract on March 18, after a 13% contract drop, and that it would take action to reduce market risk. * Margin requirements for gold contracts have been reduced to 8% from 10% following settlement on April 7, with their trading limits at 6% from 9% starting on April 8 . % of the settlement of April 7, and the 10% trading limit of 13% with effect from the next trading day. DCE * The Dalian Commodity Exchange (DCE) announced on March 4 that it will increase the limits and trading margins of its egg futures contracts for delivery in May and June. * He then increased transaction costs for the April and May egg contracts. (bit.ly/2QnykWT) * The DCE has stated that it will increase the trading limit for styrene futures to 9% and the margins to 11% compared to the March 19 settlement. * On Friday, the WFD said it would adjust trading limits for its polyethylene and polypropylene futures contracts to 6%, while setting margin requirements at 7% compared to the March 23 settlement. * DCE also said it would change the daily limits and margin requirements of its ethylene glycol futures contract to 9% and 11% respectively. * The Dalian stock exchange has adjusted trading limits for iron ore, coking coal and coke futures to 7% from 6% effective March 25. * The WFD also raised trading limits for palm oil and egg futures to 6% from March 25. The exchange said it would adjust trading limits for soybean, soybean meal, soybean oil and PVC futures to 5% and change the margin requirements for these derivatives to 6% .
ZCE * China’s Zhengzhou Commodity Exchange (ZCE) raised the margin requirement for PTA futures from May to December to 7% compared to the March 25 settlement. * ZCE also raised trading limits for PTA and methanol futures from April to December. 6% compared to March 26. * The Zhengzhou stock exchange raised the margin requirement for cotton futures to 7% and the trading limit to 6% compared to the March 25 settlement. (Report by Min Zhang, Tom Daly, Emily Chow and Muyu Xu; Editing by Susan Fenton, Barbara Lewis and Pravin Char)