Dalian Commodities Exchange: Meaning, History

By
Lucas Downey
Full Bio
Lucas Downey is the co-founder of MAPsignals.com, and an Investopedia Academy instructor.
Learn about our editorial policies
Updated March 19, 2024
Reviewed by
JeFreda R. Brown
Dr. Brown
Reviewed by JeFreda R. Brown
Full Bio
Dr. JeFreda R. Brown is a financial consultant, Certified Financial Education Instructor, and researcher who has assisted thousands of clients over a more than two-decade career. She is the CEO of Xaris Financial Enterprises and a course facilitator for Cornell University.
Learn about our Financial Review Board
Couple managing finance and investment online, analyzing stock market trades with mobile app on smartphone

d3sign / Getty Images

What Is the Dalian Commodities Exchange?

The Dalian Commodities Exchange (DCE) is located in Dalian, China, and trades futures contracts on a wide variety of commodities. The exchange is among the largest exchanges for agricultural futures in the world. 

Key Takeaways

  • The Dalian Commodities Exchange (DCE) is a commodities and derivatives exchange located in mainland China.
  • The exchange lists futures and spot contracts on a variety of agricultural commodities such as soybeans, soy meal, and palm oil.
  • Founded in 1993, the DCE has greatly contributed to the region's growth as an agricultural production and export hub and has become one of the largest commodities exchanges in the world.

Understanding the Dalian Commodities Exchange

The Dalian Commodities Exchange has been a key factor in the revitalization of Northeast China's expansion as an international agricultural hub, in part due to the area’s strategic location with access to railroads and highways.

The exchange performs several major functions, including providing venues for futures and options trading, developing and listing contracts, and organizing and supervising trading, clearing, and settlement.

Additionally, the exchange handles market surveillance and rule enforcement, formulating and implementing risk management rules, organizing marketing and investor education events, market data and information services, and more.

History of the Dalian Exchange

The Dalian Exchange was established on Feb. 28, 1993. China's futures industry was revived in 1990 after 60 years, at which point the Dalian Exchange was created.

It is a non-profit, self-regulating entity with 161 members and over 2 million investor accounts. The exchange has the largest volume of any commodities exchange in China, in part due to the fact that the exchange is an important venue for the circulation of soybeans grown in mainland China.

Through the nineties, the exchange gained a reputation for financial integrity, risk management, and functionality in the market, as well as for transparency and liquidity.

In 2013, the Dalian Commodities Exchange expanded from its role as an agricultural commodities exchange to include industrials, such as iron ore and coke coal.

Other traded commodities on the exchange include linear low-density polyethylene, palm oil futures, eggs, fiberboard, ethenylbenzene, LPG, rice, live hog, PP, and coking coal.

In 2023, the Futures Industry Association (FIA) reported that the Dalian Commodities Exchange was the ninth-largest in the world by trading volume. It boasted approximately 30% of the domestic market share and captured roughly 1.83% of the global futures market share in 2023, including financial futures.

In Which Country Is the Dalian Commodities Exchange?

The Dalian Commodities Exchange is based in China and is one of the largest commodities exchanges in the world, trading a variety of futures and options contracts, including corn, soybean, iron ore, coal, and coke.

What Products Are in the Dalian Exchange?

The products traded on the Dalian Exchange are No. 1 soybeans, No. 2 soybeans, corn, corn starch, soybean meal, soybean oil, RBD palm olein, fiberboard, blockboard, egg, polished round grain rice, live hog, LLDPE, PVC, PP, coke, coking coal, iron ore, ethylene glycol, ethenylbenzene, and LPG.

Why Is Dalian Important?

Dalian is an important manufacturing hub for China. It is also an important port city and was one of the first cities in China that was "open," liberalizing its economic policy. Its output of abalone accounts for 60% of China's market.

How Do I Buy Futures?

You can purchase futures contracts via an online broker as you would do for stocks, for example. You can open up an account at a broker, such as Charles Schwab or E*Trade, and deposit money from your checking account. There is usually no minimum required; you just need to ensure you have enough to cover the cost of your order.

From there, you can search for the futures contract you'd like to buy and purchase it. Note that futures trading is more complicated than buying regular stocks and bonds and is not recommended for beginner investors. Ensure you understand the product as well as how market movement can affect the price.

The Bottom Line

The Dalian Commodities Exchange is one of the largest commodities exchanges in the world, trading 21 commodity futures and 11 options, contributing much to China's economic growth. The exchange is in one of China's most important cities, Dalian, which operates as a port city and a manufacturing hub. The commodities exchange also makes it a financial center.

Article Sources
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

  1. Huatai Futures. "Overview of China’s Futures Market."

  2. Dalian Commodity Exchange. "About Us."

  3. Dalian Commodity Exchange. "Market Statistics."

  4. S&P Global: Commodity Insights. "Iron Awe: How Singapore Became the World's Main Trading Hub in Just 10 Years."

  5. Futures Industry Association. "Global Futures and Options Volume Hits Record 137 Billion Contracts in 2023." Download Excel "ETD Volume - Exchange Rankings 2023."

  6. China Embassy. "Dalian -- The Capital of Romance."

  7. Britannica. "Dalian."

Take the Next Step to Invest
×
The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.