Shanghai Futures Exchange mulls scrap steel, stainless steel futures

Shanghai Futures Exchange mulls scrap steel, stainless steel futures
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According to an article in the Singapore-based financial news service Business Times, the Shanghai Futures Exchange is planning to launch futures products for stainless steel and scrap steel. The move to add these futures is being done in a bid to provide instruments for market participants to hedge risks.

The article notes that a manager of the Shanghai exchange said that the exchange also is looking to launch a scrap futures product, although the manager did not say when the scrap futures contract would be implemented.

According to the article, Wang Liqun, vice chairman of the China Iron and Steel Association, encouraged Chinese steel mills to trade steel futures to hedge risks and not speculate. "Especially with the steel market downturn, mills should rationally use steel futures to hedge and control risks," he said. "We hope (the regulator) will increase oversight of the futures market, complete the related regulations and laws and regulate trading order and curb overspeculation," Wang Liqun added.

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Source: Recycling Today
Shanghai Futures Exchange mulls scrap steel, stainless steel futures
<![CDATA[According to an article in the Singapore-based financial news service Business Times, the Shanghai Futures Exchange is planning to launch futures products for stainless steel and scrap steel. The move to add these futures is being done in a bid to provide instruments for market participants to hedge risks. The article notes that a manager of the Shanghai exchange said that the exchange also is looking to launch a scrap futures product, although the manager did not say when the scrap futures contract would be implemented. According to the article, Wang Liqun, vice chairman of the China Iron and Steel Association, encouraged Chinese steel mills to trade steel futures to hedge risks and not speculate. "Especially with the steel market downturn, mills should rationally use steel futures to hedge and control risks," he said. "We hope (the regulator) will increase oversight of the futures market, complete the related regulations and laws and regulate trading order and curb overspeculation," Wang Liqun added.]]>