Premium refers to the settlement of the actual transaction price at the time of delivery according to the futures price plus (premium) or minus (premium) a certain amount. For example, the ten-day average closing price of FG305, including the last trading day, is 1.200 yuan/ton, so the delivery price in Shahe area is 1.200-200 = 1.000 yuan/ton. The main reason for setting premium is that the futures price is often a relative benchmark price, but the transportation and production costs of many commodities in different regions are different, which leads to different sales prices, so it is necessary to set a certain premium to balance them.