2014 OUTLOOK: China’s steel industry welcomes HRC futures launch

China’s steel market is looking forward to the launch of hot rolled coil futures, with most participants of the opinion that it would help them to avoid risks amid volatility.


Currently, the Shanghai Futures Exchange (SHFE) is working on the HRC futures contract, and aims to introduce it in the first half of 2014, most likely in the second quarter. The SHFE decided to come up with a futures contract for HRC due to the product’s high output and price volatility. The ease in its standardising, warehousing and delivery was also a factor. “The HRC futures will be different from the rebar futures we already launched, as it reflects demand from a wider range of industries while the latter represents more of the construction sector,” Sun Zhenqiang, an official from SHFE’s gold and steel markets department,...

Published

January 02, 2014

10:30 GMT

Shanghai