Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Baowu, Shanghai Futures Exchange sign deal on metal trading

Baowu, Shanghai Futures Exchange sign deal on metal trading

A strategic collaborative agreement was reached between China Baowu Steel Group and the Shanghai Futures Exchange on Tuesday to make spot transactions and futures trading of metal accessible at both of their trading platforms, senior executives of the two companies said.
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 Shanghai Steel Exchange 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 which is the world's second largest steel-maker.

"China's steel output snowballed from 158,000 metric tons 70 years ago to approaching 1 billion tons this year. But new problems are emerging to threaten our competitiveness, including the homogeneity of products and unbalanced supply and demand," said Chen.

In 2018, Chinese steel mills saw their fastest growth of the past few years in production of crude steel, which amounted to 928 million tons, data from the National Bureau of Statistics showed.

Taking up half of the global output of 1.89 billion tons, most of China's 300 plus steel mills are competing against each other with homogeneous products for razor-thin profit margins.

"The rapid development of our country in various sectors and the wider application of steel products in daily life will require steel to play an important role. The critical problem is how to clear the blocks between products and the market, and how to bridge the gap between specialized requirements from customers and standardized manufacturing," Chen said.

"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.

"Considering the size of Baowu and Shanghai Futures Exchange, this is a world class collaboration," said Jiang Yan, chairman of the Shanghai Futures Exchange.

Trading of yuan-denominated stainless steel futures will be the first of its kind worldwide. It was launched by the Shanghai Futures Exchange last month. At this time, 14.3 percent of the nation's steel futures trading volume are being conducted at the SFE.

As a bellwether of the global steel industry, Baowu has the vision to be an innovator in technology and the business model of the sector. It can create a high quality ecosystem for the steel sector that includes research and development, production, and trading, Chen stated.

"We want to make Shanghai a global center for the steel sector. In order to reach this goal, we will make the city our future research and development center, the operation and control center that can remotely control production sites far away with technologies like 5G, big data and intelligent manufacturing," said Chen.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Elon Musk Unveils Grokipedia: An AI-Driven Alternative to Wikipedia
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
White House Announces No Imminent Summit Between Trump and Putin
China Presses Netherlands to “properly” Resolve the Nexperia Seizure as Supply Chain Risks Grow
Merz Attacks Migrants, Sparks Uproar, and Refuses to Apologize: “Ask Your Daughters”
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
“Firepower” Promised for Ukraine as NATO Ministers Meet — But U.S. Tomahawks Remain Undecided
The Sydney Sweeney and Jeans Storm: “The Outcome Surpassed Our Wildest Dreams”
Dutch Government Seizes Chipmaker After U.S. Presses for Removal of Chinese CEO
AI and Cybersecurity at Forefront as GITEX Global 2025 Kicks Off in Dubai
Ex-Microsoft Engineer Confirms Famous Windows XP Key Was Leaked Corporate License, Not a Hack
Hungarian Prime Minister Viktor Orbán stated that Hungary will not adopt the euro because the European Union is falling apart.
Mayor in western Germany in intensive care after stabbing
Australian government pays Deloitte nearly half a million dollars for a report built on fabricated quotes, fake citations, and AI-generated nonsense.
BYD’s UK Sales Soar Nearly Nine-Fold, Making Britain Its Biggest Market Outside China
Latvia to Bar Tourist and Occasional Buses to Russia and Belarus Until 2026
Wave of Complaints Against Apple Over iPhone 17 Pro’s Scratch Sensitivity
Munich Airport Reopens After Second Drone Shutdown
Pro Europe and Anti-War Babiš Poised to Return to Power After Czech Parliamentary Vote
Sean ‘Diddy’ Combs Sentenced to Fifty Months in Prison Following Prostitution Conviction
Altman Says GPT-5 Already Outpaces Him, Warns AI Could Automate 40% of Work
Russian Research Vessel 'Yantar' Tracked Mapping Europe’s Subsea Cables, Raising Security Alarms
Global Cruise Industry Posts Dramatic Comeback with 34.6 Million Passengers in 2024
U.S. Demands Brussels Scrutinize Digital Rules to Prevent Bias Against American Tech
Private Equity’s Fundraising Surge Triggers Concern of European Market Shake-Out
Tokyo’s Jimbōchō Named World’s Coolest Neighbourhood for 2025
European Officials Fear Trump May Shift Blame for Ukraine War onto EU
The Personality Rights Challenge in India’s AI Era
Italy Considers Freezing Retirement Age at 67 to Avert Scheduled Hike
Italian City to Impose Tax on Visiting Dogs Starting in 2026
Study Finds No Safe Level of Alcohol for Dementia Risk
Trump Says Ukraine Can Fully Restore Borders with NATO Backing
Europe Signals Stronger Support for Taiwan at Major Taipei Defence Show
Germany Weighs Excluding France from Key European Fighter Jet Programme
Cyberattack Disrupts Check-in and Boarding Systems at Major European Airports
Björn Borg Breaks Silence: Memoir Reveals Addiction, Shame and Cancer Battle
When Extremism Hijacks Idealism: How the Baader-Meinhof Gang Emerged and Fell
JWST Data Brings TRAPPIST-1e Closer to Earth-Like Habitability
Trump Orders $100,000 Fee on H-1B Visas and Launches ‘Gold Card’ Immigration Pathway
France’s Looming Budget Crisis and Political Fracture Raise Fears of Becoming Europe’s “Sick Man”
Three Russian MiG-31 Jets Breach Estonian Airspace in ‘Unprecedentedly Brazen’ NATO Incident
European manufacturers against ban on polluting cars: "The industry may collapse"
Turkish car manufacturer Togg Enters German Market with 5-Star Electric Sedan and SUV to Challenge European EV Brands
Christian Brueckner Released from German Prison after Serving Unrelated Sentence
×