China Securities Journal: Shanghai Futures Exchange Held Iron and Steel Industry Investigation and Survey in Hebei

Updated on: November 19, 2015

Reported by Guan Ping, Journalist from China Securities Journal

To prompt communication between institutional investor, futures interdiary and relevant iron and steel spots industry, lift futures industry’s capacity to serve real economy and industrial chain, Shanghai Futures Exchange (SHFE) engaged over 40 futures company’s excellent analysts, risk management subsidiaries, as well as steel products related investment organizations for an investigation and study practice in Shijiazhuang, Cangzhou and Tangshan, Hebei Province.

Iron and steel industry is one of the hot spots relating to market these days. The three large-scale iron and steel enterprise groups – Hebei Jingye Group Co., Ltd., Hebei Sinogiant Metallurgy Investment Group Co., Ltd. and Tangshan Donghua Iron & Steel Enterprise Group Co., Ltd. investigated and surveyed this time were all brand enterprises registered at SHFE. During the visit, investigators toured deformed rebar, hot rolled coil workshop and cargo ports, heard introduction from enterprise heads on their production and management, and hedging business among others before making detailed inquires over issues of market concerns such as spots variety’s production-supply-marketing. The tour enabled investigators first-hand field data, conducive to more precise judgment over variety’s afternoon session, and also conducive to deepened exchange and cooperation with enterprises in the future.

Serve real economy and play the role of exchange as platform and bridge is one of SHFE’s priorities. Under the current economic situation, relevant industry chain enterprises have also realized the guiding role futures pricing plays on spots. They have realized that using futures tools may better address price fluctuations and other operational risks in the complex and changeable market environment. They also urgently hope to build cooperation ties with relevant market institutions.