It is reported that the Shanghai Futures Exchange is likely to re launch steel futures contracts on wire rod and rebar in September or October after being held off for eight years.

Market insiders said "It is not surprising to re launch the steel futures in September or October since SHFE has been well prepared for this during last eight years. And East China, the major distributing centre of steel products in China, is quite suitable for the contract.”

Market analysts explain that the increasingly volatile steel prices have prompted steel mills to reduce exposure to the market risk with steel futures, that's the root reason for the shift of their attitudes towards the steel futures.

Mr Luo Bingsheng vice secretary general of the China Iron & Steel Association said regarding steel futures at a forum held by the Shanghai Futures Exchange last May that "It seems that it's a long-term trend to develop steel futures."

As per report, Shanghai Futures Exchange has already completed designing of wire rod and rebars futures contracts as well as the constitution of their transaction and risk control measures.

The Exchange has applied for re launching the steel futures contracts on 6.5mm wire rod and rebar in 2000, but the proposal has been shelved for eight years, partly due to the strong resistance from domestic leading mills.