Shanghai, China -- (SBWIRE) -- 01/29/2014 -- Shanghai International Market Exchange (SHIMEX) said on Monday it will start trading a dollar-denominated steel futures contract on August 3rd , hoping to tap into the growing demand for the product in China.
The steel contract will trade in lots of 1,000 troy ounces and be delivered in Shanghai, the exchange said in a statement.
Steel demand rose 67 percent in China and 17 percent globally between 2011 and 2013, the exchange said, citing market data it has compiled.
"The new contract will enable buyers and sellers in China to trade effectively with their counterparts across the world, while at the same time, allowing investors to gain exposure to steel price movements and broaden their investment portfolio," said Shanghai International Market Exchange SHIMEX president Wu Yong in the statement.
The exchange also plans to launch Yuan-priced gold and silver futures to capitalize on growing investor demand for China's strengthening currency, with further ambition for products in base metals, energy and agriculture, Yong told reporters earlier this month.
SHIMEX is one of Asia’s leading Exchanges based in The People’s Republic of China, established in 1999 SHIMEX started its operations and offers commodity trading products such as Precious Metals, Energies, Grains, Softs, Currencies and Meats.
Futures and options exchanges are one of the main institutions of liberal economic systems. Although negative developments impacted the financial markets in recent years, trading volumes of futures exchanges have continued to increase during that period.
In a free market economy, prices are determined by supply and demand. In China, the governments implement policies to provide such a free market. In addition, free capital flows between countries are encouraged and restrictions are being abolished in accordance with the Chinese legislations. As a result of such developments in terms of a free market economy, the need for risk management tools is obvious. SHIMEX is offering significant opportunities and instruments to those who need to manage such risks.
In order to meet these needs more efficiently, SHIMEX continues to work on both design of the exchange and development of new products.
The mission of the Shanghai International Market Exchange (SHIMEX) is to operate and develop high quality market and clearing services for the benefits of its Chinese and international clients.
SHIMEX has strategic and economic responsibilities in terms of establishing an efficient and successful risk management platform to meet the needs of investors and to maintain a robust economic system. With these responsibilities in mind, SHIMEX is separated from other profit-seeking organizations.
media contact: Matthew Lee Jones
SHANGHAI INTERNATIONAL MARKET EXCHANGE (SHIMEX)
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