I. Physical delivery of due contracts

Delivery is effected through the exchange of cash and warrant between the buyer and the purchaser within the appointed time of the exchange.

1. Brand List and Delivery Premium

   Only those brands listed in the exchange can be delivered physically. In the registered warehouses the delivery price of the listed brands should be the actual prices based on the premium standard which is stipulated by the exchange. The different premiums are adopted in pricing for different standard brands within a certain period of time.

2. Warrant

   It is the delivery certificate given to the owner after its goods is checked into the appointed warehouse. Warrant is issued by the exchange only and used in the delivery procedure. It is valid after the date of issuance and it can not be allowed to re-transfer.

3. Last Trading Date and Delivery Period

   The last trading date should be the 15th of the month the contract expires(if it is a non-trading day, the previous working day should be regarded as the last trading day.). After the last trading day, the due contract should be traded physically. The delivery period starts from the next day of the last trading day to the 20th of the month (if it is a national holiday, it can be put off). With the delivery period, the delivery can be effected on every working day.

4. Implementation of Delivery

   Within the delivery period, the seller should hand in the warrant to the exchange before 5:00 p.m. of the last delivery day. The buyer must transfer the credit to the clearing department before 2:00 p.m. in same day. If missing the time, they will be punished according to the regulations concerning the breach of delivery rules. The value-added invoice of the seller must be handed in to the exchange within two days after the delivery. Upon its receipt, the exchange will refund the delivery guarantee deposit for delivery (deposit collected when the positions hold) to the seller.

5. Spot Contract Trading

   In order to meet the sudden need for production of the client, the exchange added "spot contract trading" in the course of futures trading. Spot contract is the contract with a delivery period of three days starting from the next day of the conclusion of the trading. The physical delivery period starts from the 4th day to the 10th. The warrant can be regarded as a spot contract and can be used to fulfill spot contract after trading.

6. Physical Acceptance

   Physical acceptance is carried out after delivery. The last consignment day should be the last day of the month of expiration(if it is a national holiday, it can be put off). In the course of consigning, premium rate should be adopted according to that published by the exchange for the different grades of the brands. If there is quantity tolerance with the stipulated limit, the payment for the goods of that quantity should be calculated according to the clearing price of the last trading day.

II. Liquidation

It is a kind of trading method by which traders offset previously long or short positions in the way of selling or buying same contracts before the last trading day.