โ All Products ยท Product Guide
Log (Round Timber) (LG)
Launched in 2024, log futures (LG) on the Dalian Commodity Exchange brought round timber โ the raw material behind China's massive construction and furniture industries โ onto the futures board for the first time. As the world's largest timber importer, China finally has an exchange-graded price benchmark. For traders, LG is a young contract where the construction cycle, New Zealand supply logistics and port inventories collide, producing wide, trending moves.
Contract Specifications
| Exchange | Dalian Commodity Exchange (DCE) |
| Symbol | LG |
| Contract size | 90 cubic meters per lot |
| Price quote | CNY per cubic meter |
| Minimum tick | ยฅ0.5/cubic meter = ยฅ45/lot (โ$6.30) |
| Trading hours | Day 9:00โ10:15, 10:30โ11:30, 13:30โ15:00 Beijing ยท Night: 21:00โ23:00 Beijing |
| Contract months | Monthly contracts (list per exchange calendar) |
| Exchange margin (reference) | ~8โ15% exchange margin (dynamic) โ adjusted dynamically; the exchange's latest notice always prevails. |
| Example lot value | ยฅ800/cubic meter โ ยฅ72,000/lot (โ$10,100), margin โยฅ7,200 (โ$1,010) |
Specifications are reference values compiled from exchange publications. Margins and price limits adjust dynamically โ the exchange's latest announcements prevail.
What Moves Log (Round Timber)
- New Zealand supply dominance. New Zealand radiata pine dominates Chinese import volumes. NZ harvest schedules, shipping logistics and weather disruptions at ports like Tauranga directly set Dalian supply expectations.
- Construction and property completions. Logs feed sawmills serving construction. The property completion cycle โ not new starts โ is the demand engine, since timber enters at the fit-out stage.
- Port inventory at Taicang and Lanxi. Jiangsu/Zhejiang port stockpiles are the physical market's gauge. Builds signal weak sawmill demand; rapid draws confirm construction activity and precede rallies.
- Russian and North American competition. Sanction-shifted Russian log flows and North American SPF lumber pricing create cross-supply competition that caps New Zealand pricing power.
- Exchange rate (CNY/USD). Timber is dollar-denominated in trade. RMB depreciation lifts import costs and mechanically supports Dalian prices.
Why Traders Watch It
LG is a young contract: liquidity is thinner and spreads wider than the legacy DCE products, and the exchange adjusts parameters frequently as the market matures. Position limits apply and margin levels have shifted multiple times since launch โ always check the latest exchange notices before sizing. Trends follow the property cycle and NZ shipping news; respect the wide price limits and avoid over-sized positions in deferred months.
Trading LG on XS Select
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