中文
China Baowu Steel Group and the Shanghai Futures Exchange (SHFE) have reached a strategic collaborative agreement on October 8 to make spot transactions and futures trading of metal accessible at both of their trading platforms, noted senior executives of the two companies.
The agreement will establish a multi-level commodity trading market system and win China more of a say in the pricing of metals which the country consumes in significant quantities, the senior executives said.
The SHFE under China Baowu will work closely with the steel futures trading platform under the Shanghai Stock Exchange to launch spot and futures trading in metals.
"The collaboration comes after years of efforts made by our two parties as well as the local government, which can better facilitate resources between supply and demand, while letting the market play the decisive role in pricing," said Chen Derong, the chairman of China Baowu.
China's steel output snowballed from 158,000 tonnes 70 years ago to nearly 1 billion tonnes this year. But new problems are emerging to threaten our competitiveness, including the homogeneity of products and unbalanced supply and demand, Chen noted.
In 2018, Chinese steel mills saw their fastest growth of the past few years in production of crude steel, which amounted to 928 million tonnes, showed data from the National Bureau of Statistics.
"The connection of spot and future steel trading by the two platforms under China Baowu and the Shanghai Stock Exchange respectively will effectively bring the clients and producers closer," said Huang Keli, head of the Shanghai Steel Exchange.
After the two platforms open up to each other by the end of this year or early in 2020, the first batch of products by the 73 steel mills which are collaborating with Baowu will be launched at first. This will be followed by several steel companies and more diversified products that should be launched in the future, Huang said.
(Writing by Tian Zhang Editing by Tammy Yang)
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