Shanghai Futures Exchange (SHFE) launched trading of hot rolled coil (HRC) futures contracts today, March 21, offering another hedging tool for steelmakers amid growing price volatility.
The most traded HRC contract for October delivery ended the business day at RMB 3,324/mt ($533.8/mt), just indicating a slight change from the benchmark price of RMB 3,316/mt. Lot sizes were 10 mt, while traders are required to place a minimum six percent of the contract value as deposit.
Having already introduced rebar and wire rod futures in 2009, Shanghai Futures Exchange said it expects the new HRC futures to increase China's role in pricing in the global steel market. Last year, Dalian Commodity Exchange launched trading of iron ore and coking coal futures.