Shanghai Futures Exchange (SHFE) has announced that it will raise transaction fees on the main contracts for rebar and hot rolled coil (HRC) futures as of June 3.
Accordingly, the transaction fees for the main rebar contract RB2110 and the HRC contract HC2110 closed during the day will be adjusted from two percent to three percent per lot transacted. One lot amounts to 10,000 mt.
The rapid rises in commodity prices since mid-May attracted the attention of China’s central government, and so several measures have been taken to curb the rising trends. The rises in transaction fees for main contracts of rebar and HRC will cool down the overheating ferrous metal futures prices. As the traditional offseason in June amid the hot weather and rainy season is approaching, demand for steel will slacken, which will exert a negative impact on steel prices.