In a bid to become a logistics hub, Hai'an in recent years has taken the initiative to construct futures delivery warehouses. [Photo/WeChat account: hafbwx]

As of Dec 25, the total throughput of futures delivery warehouses in Hai'an, a county-level city of Nantong, exceeded 1 million tons, hitting a new high.

In a bid to become a logistics hub, in recent years the city has taken the initiative to construct futures delivery warehouses. The Jiangsu Hai'an Trade and Logistics Industry Zone has established cooperation with three State-owned futures exchanges, and built the Shanghai Futures Exchange non-ferrous metal delivery warehouse, the Dalian Commodity Exchange plastic particle delivery warehouse and the Zhengzhou Commodity Exchange cotton delivery warehouse.

With business scopes covering aluminum, zinc, PP, PE, PPC and cotton, the three warehouses constitute a group with a certain scale. This year, the throughput of the three delivery warehouses has exceeded 1 million tons. The value of the commodities is expected to surpass 14 billion yuan ($2.14 billion).

As important bulk supply distribution nodes, the delivery warehouses further enrich Hai'an's raw material supply system and optimize the industrial manufacturing environment. They play a significant role in the city's supply-side structural reform.

In addition, the delivery warehouses also provide cost-effective and diversified bulk materials for the downstream market. By virtue of that advantage, the downstream enterprises save more than 40 million yuan in logistics and capital costs every year.