NOREXECO launches China softwood and hardwood pulp futures based on Fastmarkets prices

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Jun 01, 2021, 03:00 ET

LONDON, June 1, 2021 /PRNewswire/ -- NOREXECO ASA, the international pulp and paper exchange, launched two cash-settled China pulp futures contracts on June 1 based on Fastmarkets' prices to meet growing demand for hedging in the international pulp market.

The contracts, one for softwood pulp and one for hardwood pulp, are settled against the monthly averages of Fastmarkets RISI's NBSK CIF China assessment and Fastmarkets FOEX' PIX China BHKP Net index. These prices reflect trade in the offshore contract market, where imported pulp is sold to traders and end users on a cost, insurance and freight (CIF) basis for delivery to main ports in China.

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. These are also settled against Fastmarkets FOEX indices. In addition, NOREXECO has listed a Shanghai Futures Exchange (SHFE) "mirror" contract on NBSK.

"The two new contracts enable anyone with exposure to pulp delivered to China to hedge out unwanted risk," said Stein O. Larsen, chief executive officer at NOREXECO. "We can also announce that clearing and transaction routes for accessing the international NOREXECO market are opened for both Asian and international traders. We are glad to have with us strong partners like StoneX and Freight Investor Services (FIS) to help bring market participants into the market."

The market will set daily closing prices and make visible a transparent forward curve available for all market participants.

"These new contracts have real potential to become liquid between now and year's end given the strong interest we've seen from stakeholders," said Matt Graves, senior vice president at Fastmarkets.

NOREXECO is ensuring that Chinese companies can participate in trade via brokers and clearing houses by providing an easy access route.

For more information about the two new China contracts, please contact:

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 130-year history built on trust and deep market knowledge. Its team of more than 450 people are located in 13 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 specialized 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 September 15, 2015. As a prime producer and exporter of high-quality fiber products, the Nordics are 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.

SOURCE Fastmarkets