SteelOrbis Shanghai
China has drawn up draft contract specifications for the trading of steel futures at Shanghai Steel Futures Exchange, and is currently soliciting feedback on the specifications from the interested parties.
The draft contract specifications in question cover product, lot size, deposit, and contract unit. Rebar and wire rod products will be listed on the same day, with lot size of 10 mt. The minimum price fluctuation is RMB 1/mt; the daily price fluctuation limit is 4-6 percent; the deposit will equal six percent of the contract value; and the contract unit is to be 300 mt. In addition, a new delivery system of designated warehouses of certain mills has been introduced for the purpose of making savings on stocking costs.
The standard grades and sizes for rebar contracts are 16 mm, 18 mm, 20 mm, 22 mm, and 25 mm diameter HRB 400 or HRBF 400 in accordance with GB 1499.2-2007; meanwhile, the deliverable grades may be 6 mm, 18 mm, 20 mm, 22 mm and 25 mm diameter HRB 335 or HRBF 335 in accordance with GB 1499.2-2007.
The standard size for wire rod contracts is 8 mm diameter, with a deliverable size of 6.5 mm diameter.