Feasibility analysis to establish coking coal futures in China from US experience

Under the background of increasingly volatile coal price in China, this article depicts market running situations before and after coal futures´ launch in US. Then it consolidates current status of Chinese coal market and compare both background and conditions to start coal futures between two countries with the index of concentration rate. Finally the conclusion is drawn that it is possible to avoid price risk for coal producing and consuming companies through establishing futures market. Also, concretely, this article analyzes the producing market, demand market and price changes of coke coal and make it clear that coke coal is better to be the first product in coal futures market.