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...