SteelOrbis Shanghai
Luo Bingsheng, vice chairman of the China Iron and Steel Association (CISA), last weekend declared that the launch of China's steel futures was now set to take place after the Olympic Games and before the end of 2008. This means China's steel futures will finally be launched after eight years of investigations, research and discussions.
Mr. Luo said wire rod and rebar would be the trial products used for the steel futures launch and, if successful, the steel futures would be gradually extended to other products.
Commenting on the prospects for the Chinese steel market in the coming period, Mr. Luo pointed out that in the second half of 2008, with China's GDP growth rate declining, there is a possibility that demand for crude steel will slow down in the domestic market. If the domestic iron and steel output keeps on increasing significantly in H2 2008, while exports are reduced because of government control measures and lower demand, then supply may greatly exceed demand in China's domestic iron and steel market.