Delivery quality standards. In the delivery rules, Dashang Institute stipulated the quality standards and quality discounts of standard products and substitutes for iron ore contract delivery. See Dalian Commodity Exchange's iron ore delivery quality standard (F/DCEI00 1-20 13) for details. The iron ore standard is designed according to the largest mainstream iron ore, and is limited by trace elements, excluding non-mainstream minerals from the delivery system. Substitutes are relaxed in iron, sulfur, phosphorus, silicon, aluminum and other indicators, and concentrates are included in the delivery system, but ores with better quality can still be delivered.
Place of delivery. Iron ore delivery places are mainly in Jingtang Port, Tianjin Port, Qingdao Port, Rizhao Port and Lianyungang, as well as the main producing area of Hebei.
Delivery fee. The storage loss fee is 0.5 yuan/ton/day. Warehousing and miscellaneous operating expenses shall be subject to the maximum price limit, which shall be declared by the designated delivery warehouse according to its own situation and uniformly announced after being audited by major merchants. Delivery fee 0.5 yuan/ton.
About storage and loss costs. Spot trade of iron ore, storage fee 1-2 months. If the time limit is exceeded, some warehouses adopt progressive charging method, and some warehouses adopt fixed charging method. Generally speaking, most spot enterprises charge about 0. 1-0.2 yuan/ton-day for iron ore storage, but ports, as warehouses, take cargo handling as their main business, and do not want goods to be stored for a long time. Considering that after the iron ore generates warehouse receipts, the corresponding goods may be stored in the open air for a long time, and there is a certain loss in the process of goods storage, the exchange requires the warehouse to ensure sufficient delivery, and the latter should bear the corresponding loss. In order to strengthen the management of port warehouses and arouse their enthusiasm, Dashang Institute set the loss cost of futures storage higher than the spot standard, and set it as 0.5 yuan/ton-day.
About storage and miscellaneous operating expenses. The main delivery places of iron ore futures are located in the main ports around Bohai Sea, including inland production areas. Due to the differences in external environment and their own hardware conditions, the cost of warehousing and miscellaneous operations will be different between delivery warehouses, especially between port warehouses and inland warehouses.
About the delivery fee. This fee is used to cover the management costs of the exchange in the delivery warehouse and warehouse receipt process. In order to reduce the delivery cost and promote the close integration of the current market, the big commercial houses symbolically charge according to the current lowest 0.5 yuan/ton standard.
Handle integer multiple positions of undelivered units. Individual customer positions are not allowed to be delivered, and non-delivery companies are not allowed to deliver in integer multiples. Before entering the delivery month, individual customers close their positions on their own; Before the market closes on the last trading day, customers should adjust their positions to integer multiples of the delivery unit. From the first trading day of the delivery month, the exchange will force individual customers to close their positions in the delivery month.
After the closing of the last trading day, if the positions that cannot be delivered cannot be closed, the Exchange shall, in accordance with the principle of "the positions that cannot be delivered are given priority, and the positions of the delivery unit with the shortest time are given priority", select the positions of the counterparty for hedging, close the positions at the contract settlement price, and impose a fine of 20% of the contract value on the positions that customers are not allowed to deliver, and pay the money to the counterparty. If both hedging parties are customers who hold positions that are not allowed to be delivered, the exchange will impose a fine of 20% of the contract value calculated at the settlement price of delivery on both parties, and will not pay the counterparty. (The fifth knowledge of iron ore futures)