[SMM brief Review] stainless steel futures are in hot preparation for the listing of ferrochrome futures at the anniversary celebration of stainless steel futures.

Published: Sep 27, 2020 17:24 (GMT+8)

SMM9 March 27: recently, Wang Fenghai, general manager of the Shanghai Futures Exchange, said that the listing of the world's first stainless steel futures fills the gap in the risk management tools of international special steel varieties, provides an open and transparent price signal for entity enterprises, and further enriches the steel futures series, which helps to enhance the influence of Chinese steel prices in the world.

Among them, Wang Fenghai said that in the next step, the Shanghai Futures Exchange will continue to improve the operation quality of the steel futures market and strive to improve its service capacity and level: first, to refine and deepen the existing varieties. Comprehensively optimize the existing varieties from the aspects of contract rules, brand registration and warehouse layout. The second is to increase the supply of high-quality products. Prepare for the listing of ferrochrome futures, create a stainless steel industry chain hedging toolbox, and promote the research and development of cold-rolled sheet, steel futures options and other varieties. The third is to promote a higher level of opening up to the outside world. We will study and explore ways such as settlement price authorization and order routing to accelerate the opening of steel futures to the outside world and enhance the influence of international pricing.

SMM believes that with the progress of the times, the mode of trade is changing, and the market has developed from original income, cost and profit to a variety of profit models, such as brand profit, resource profit, leveraged profit and so on. With the booming dividend of the bulk market, the small metal market represented by chromium and manganese is constantly learning to change from spot trading of finished products to spot, raw materials, futures and even more diversified operations. Not only follow the pace of the market to look at the existing chromium market, but also look forward to the future of the chromium industry chain. Downstream stainless steel plants can still make profits such as upstream metal nickel spot and futures through resources and leverage under pressure on the profits of the main products. On the other hand, the financial attribute of the Ferro-chromium market in the industrial chain has been greatly improved under the background of the future prospect of the listing of high-carbon ferrochromium in the last stock market.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

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