Shanghai exchange presents new steel rebar delivery rules
Jul 29, 2024
https://www.xm.com/research/markets/allNews/reuters/shanghai-exchange-presents-new-steel-rebar-delivery-rules-53891754
Excerpt
BEIJING, July 29 (Reuters) -The Shanghai Futures Exchange said it will allow steel rebar and wire rod produced under new national standards to be used to register warrants from Monday.
China, the world's largest steel producer and consumer, on June 25 announced mandatory standards which will take effect from Sept. 25 to replace voluntary guidelines that have been in place since 2018 and 2017 for rebar and wire rod, respectively.
Steel rebar and wire rod produced under old standards cannot be used to register standard warrants from Aug. 19, the bourse said in a statement on Monday.
"We will take necessary measures based on the market situation to facilitate a smooth transition to the new revised national standards," it added.
The exchange will cancel warrants for steel rebar and wire rod produced under the old standards and any standard warrants that remain pledged will be released after market close on Sept. 24, the statement showed.
"It is in line with market expectations that products with new standards will be required for delivery from the October contract," analysts at First Futures said in a note.
Regional steel trading associations in China are seeking a delay to the new quality standards for steel rebar, used in construction, until either November or next January after a panic inventory sell-off weighed on steel prices.
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