Shanghai Futures Exchange mulls scrap steel, stainless steel futures

According to an article in the Singapore-based financial news service Business Times, the Shanghai Futures Exchange plans to launch futures products for stainless steel and steel scrap. The additions are being considered in a bid to provide instruments for market participants to hedge risks.

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 to speculate. "Especially with the steel market downturn, mills should rationally use steel futures to hedge and control risks," he told the news service. "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 added.