SSY Futures Ltd See Continuing Progress In The Coking Coal Derivatives Market
SSY Futures Ltd is pleased to report that it is seeing continued growth in the Coking Coal Derivatives market. 13.8 million metric tonnes of Coking Coal derivatives have traded to date this year compared to a total of 5.3 million metric tonnes traded in 2016. SSY Futures Ltd has been the leading broker in this rapidly growing market.
SSY Futures Ltd is an early adopter in the Coking Coal markets and has been operating a Coking Coal broking team since July 2014, split between their offices in Singapore, London and New York.
Earlier this week, SSY reported having arranged the first Calendar ’20 coking coal futures trade, for final settlement at the end of 2020. This is the longest dated Coking Coal futures trade they are aware of and is reckoned to be indicative of a maturing market.
Coking Coal contracts currently clear mainly via SGX Asiaclear where a suite of Iron Ore, Coking Coal and Steel products are used by traders in the steel industry to control their risk exposures. Conversely in 2016 the majority cleared via CME. SSY Futures Ltd also specialise in Forward Freight Agreements which give traders the ability to control their freight risk.
Iron Ore derivatives have been one of the most successful commodity derivative products to be launched in recent years, with an explosive growth cycle, Coking Coal derivatives, an integral part of the steel manufacturing risk management process are now set for similar growth, suggests Jamie Pearce, Head of SSY Futures Singapore Pte Ltd:
“Coking coal derivatives to date in 2017 have greatly exceeded the total trade volume for 2016, this puts Coking Coal on a similar trajectory to iron ore and we expect a rapid and sustained growth in coming years.”
SSY Futures Ltd is one of the largest Dry Bulk and Freight derivatives brokerages in the World, with 30 brokers in London, Singapore, New York and Shanghai. SSY Futures specialises in iron ore, coking coal and steel derivatives as well as Forward Freight Agreements.