Stainless steel futures have started trading at Shanghai Futures Exchange (SHFE) on September 25. The margin of stainless steel futures contracts is eight percent, while the upward and downward daily limits are plus six percent and minus six percent.
China has the fastest growth of stainless steel output in the world. In May 2010, China’s stainless steel exports exceeded its imports for the first time. Since then it has been a net exporter of stainless steel. In 2018, China achieved a stainless steel output of 26.71 million mt and was the world’s biggest producer and consumer of stainless steel, while it plays a key role in the global stainless steel market.
As SteelOrbis previously reported, the launch of the world's first stainless steel futures will help promote the formation of an open and fair pricing mechanism, further enhance the influence of China's pricing in the international stainless steel market, and provide the relevant industrial chain enterprises with price risk management tools.
On September 25, the reference price of stainless steel futures main contract (SS2002) was RMB 15,585/mt ($2,203.6/mt), while it closed at RMB 15,575/mt ($2,202.2/mt), down 0.06 percent on the first trading day.