China Securities Regulatory Commission on Friday approved trade of fiberwood and plywood futures contracts at the Dalian Commodity Exchange (DCE).

China is the world's largest producer and consumer of the two wood products. They are crucial to forestry, as well as furniture, decoration and packaging sectors.

China has sped up development of commodity futures markets to offer companies more tools to hedge risks while trying to have a bigger say in the pricing of major commodities in the global market.

With these two new futures approved, China is expected to have ten new futures in market this year, including iron ore futures which started trading on Oct. 18 at the DCE.