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
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×