August 22, 2019 / 7:37 AM / 4 months ago

China to speed up launch of coking coal and coke options - report

BEIJING, Aug 22 (Reuters) -

* China will accelerate the launch of coking coal, coke and iron ore options on the Dalian Commodity Exchange (DCE) in an effort to further enrich hedging tools, the state-backed Securities Times reported on Thursday.

* In commodity derivatives trading, options give the buyer the right - but not obligation - to assume a futures position at a specified price.

* The report did not specify when the bourse plans to launch the options; Reuters reported last September that China aims to launch iron ore options in 2019.

* Chinese firms have faced increased price volatility in steelmaking raw materials coke and coking coal in recent years, generating more demand for market risk management, DCE general manager Wang Fenghai was quoted as saying.

* The Dalian exchange also plans to launch steel scrap and gas coal futures, Wang said at an industry conference, without providing a timeframe.

* The exchange is unable to provide more details beyond the report. (Reporting by Min Zhang and Tom Daly)

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