Dalian Commodity Exchange (DCE) has stated that it signed a strategic cooperation agreement with China Association of Metalscrap Utilization (CAMU) on March 26 to develop and launch ferrous scrap futures.
While DCE did not specifly a timeframe for the launch of ferrous scrap futures, it said the two sides also agreed to promote standardization and educate the scrap industry.
Market analysts consider that the listing of scrap futures at DCE would provide an effective hedge platform for relevant enterprises and improve their abilities to hedge risks in the future.
In 2018, China consumed 188 million mt of scrap. However, compared to developed countries, China’s iron and steel industry still has great potential for development in terms of its use of scrap.