China likely to re-open steel futures market
After an eleven-year absence from the Chinese futures market, steel futures in China might soon be making a comeback, Chinese sources report. The suggestion follows a 71.5% iron ore price hike agreement signed between Boasteel, China's largest steel producer, and Rio Tinto and CVRD, two of the world's largest iron ore suppliers. The Shanghai Futures Exchange (SHFE) reportedly submitted an application regarding the subject to the China Securities Regulatory Commission. Restoration of the steel futures is expected to help China protect its pricing rights in international steel markets and protect steel producers from price fluctuations. Such a move is especially critical at a time when China has become an important steel producer and a consumer.