SHANGHAI, April 29, 2021 /PRNewswire/ -- Fastmarkets, the
global commodity price reporting agency, and NOREXECO ASA, the
international pulp and paper exchange, today announced that the
exchange will launch two new cash-settled China pulp futures contracts on June 1 based on Fastmarkets RISI's NBSK CIF China
assessment and Fastmarkets FOEX' PIX China BHKP Net index.
Pulp futures are designed to help market participants manage
their exposure to price risk. NOREXECO already lists contracts for
hardwood and softwood pulp delivered to Europe, as well as for recycled paper – all of
which are settled against Fastmarkets FOEX indices. In addition,
NOREXECO has listed a Shanghai Futures Exchange (SHFE) "mirror"
contract on NBSK.
"With the rapid rise of the importance of the SHFE pulp futures
contract and its influence on global market pulp prices, these new
contracts will provide international producers and global buyers
the opportunity to hedge their exposure to future price swings for
imported pulp into China," said
Matt Graves, Senior VP of Indices at
Fastmarkets.
The market will set daily closing prices and make visible a
transparent forward curve available for all market
participants.
"This will be the first time that stakeholders in China will have access to a futures contract
for hardwood," said Haidong Weng,
Head of Strategic Business at Xiamen C&D Paper & Pulp. "The
new contracts will provide opportunities for cross-market hedging
and arbitrage against SHFE and the hardwood/softwood spread."
NOREXECO is ensuring that Chinese companies can participate in
trade via brokers (FIS) and clearing houses by providing an easy
access route.
"The two new China pulp
contracts increase the opportunity to manage price risk for
everyone exposed to price movements on pulp," said Stein O. Larsen, CEO at NOREXECO. "They are a
great addition to the NOREXECO product portfolio and open
opportunities for both existing and new market participants at
NOREXECO. Anyone seeking to reduce risks and/or exploit
opportunities should contact us to get access to the market."
John Banaszkiewicz, Freight
Investor Services CEO, added, "We are pleased to be able to partner
with NOREXECO on pulp futures and to drive forward development of
the only dedicated market for pulp and paper (a real paper
market!).There is already a well-established onshore market in
China, but we hope that the launch
of these contracts will enable us to help develop this globally,
growing both the offshore and onshore markets. We are especially
keen to bring our experience and expertise of developing iron ore
futures to the pulp market."
All NOREXECO products are listed as months, quarters or years,
with a total duration of 36 months forward. This enables market
participants to optimize company-specific tender risk or to lock in
a margin. The contracts will be tradable for all NOREXECO members,
either directly through the electronic trading system, or by
calling the NOREXECO Market Service Desk. NOREXECO market access
can also be obtained through banks and broker companies, including
for Chinese companies.
ABOUT FASTMARKETS
Fastmarkets is the industry-leading
Price Reporting Agency (PRA) for global commodities, providing
price data, news, analytics, and events for the metals and mining,
forest products, and agriculture markets. Fastmarkets' data is
critical for customers seeking to understand and predict dynamic,
sometimes opaque markets, enabling trading and risk management.
Fastmarkets is a global business with a history exceeding 130 years
built on trust and deep market knowledge. Its team of more than 430
people are located in global offices including London, Helsinki, Boston, New
York, Shanghai,
Beijing, Singapore, Brussels and São Paulo. Fastmarkets is part of
Euromoney Institutional Investor PLC (LSE:ERM), a listed company on
the London Stock Exchange. Euromoney is a leading international
business-to-business information group focused primarily on the
global commodities, banking and asset management markets.
ABOUT NOREXECO
NOREXECO is a regulated commodity
exchange specialised for the global pulp and paper industry.
NOREXECO offers trading in cash settled financial futures. These
instruments are used to manage price risk for market participants
like producers and consumers as well as being a trading opportunity
for financial institutions and commodity trading firms.
NOREXCO was established in 2012 and obtained a license as a
regulated marketplace in September
2014. The marketplace commenced operation on the 15 of
September 2015. As a prime producer
and exporter of high quality fibre products the Nordics is an ideal
location for an exchange for forestry and paper products. This
combined with the region's regulatory environment and its
reputation for transparency makes it the right home for NOREXECO.
NOREXECO is regulated by the Financial Supervisory Authority of
Norway. Our physical location is
in Kongsvinger, near Oslo.
NOREXECO – the pulp & paper exchange – is built on the idea
that efficient utilization of products from the forestry value
chain benefits both the environment and the economy.
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SOURCE Fastmarkets