New country nine burning steel ** innovation hot spot

On May 18, deputy general manager of the Shanghai Stock Exchange, Ye Chunhe, pointed out at the 8th International Steel Conference that the previous period will use the new “State of the Nine Articles” as an opportunity to accelerate reforms and innovations and target the steel industry from three. Strengthen and deepen services.

“The new 9 countries in the capital market formally issued by the State Council have clearly pointed out that it is necessary to continue to introduce a large variety of resource products and to eliminate the unnecessary restrictions on the use of risk management tools by enterprises. This provides ample opportunities for the rapid development of the market. The policy space will further enhance the capabilities of the market service industry,” said Ye Chunhe.

Ye Chunhe said that in terms of deepening services, the last period will continue to study, steadily implement the system of factory delivery and continuous trading, and focus on the steel industry to carry out three aspects of work. The first is to strengthen exchanges and communication with the domestic and international steel industry, actively carry out various forms of hedging training, sum up the success stories of steel ** hedging, promote experience, and improve the ability and level of enterprises to use ** tools. The second is to intensify the innovation and research work of steel and other types of steel billet, scrap steel, stainless steel, and ferrous metal indices. The third is to continue to increase the iron and steel enterprises that meet the national regulations to register brands, establish delivery warehouses in areas with good spot basis and convenient logistics, and further extend the coverage of the steel industry to serve the steel industry.

Ye Chunhe believes that the price fluctuations of major products in the iron and steel industry chain, such as steel, iron ore, and coking coal, are significant and out of synch, and due to the concentration of suppliers in the iron ore market, the prices of steel and iron ore show completely opposite asymmetry. Demand price elasticity, that is, steel prices rise slowly and to a lesser extent and fall faster and more, while iron ore rises faster and more, falling slowly and less. "In the course of the decline in steel prices, steel producers and trading companies can use steel tools to sell and hedge hedging sales and inventory, lock down product prices, and reduce inventory losses," he said.

In order to meet the needs of China's steel industry's risk management, the last period since 2009 has introduced three varieties of rebar, wire rods and hot-rolled coils. “Steel ** has served our country’s steel industry with initial success, the market is operating stably, trading is active, and companies participate actively.” Ye Chunhe emphasized.

Taking rebar ** as an example, according to the data from the previous period, as of the beginning of May this year, unilateral calculations, the cumulative turnover of rebar ** 1.025 billion hands (102.50 billion tons), turnover reached 40.75 trillion yuan; The turnover was 825,400 lots (8,254,400 tons), and the turnover was 32.81 billion yuan; the cumulative delivery was 1.24 million tons. It is understood that rebar ** has been the world's largest steel product for five consecutive years, and it has become the world's most active commodity contract in 2013 and the world's tenth largest derivative contract.

Ye Chunhe also pointed out that steel ** serves China's steel industry mainly in the following aspects:

First, the influence of steel products in the steel market at home and abroad continues to increase. The price of rebar ** objectively reflects the change in the year-on-year growth rate of China's industrial product ex-factory price index. The correlation between the two has reached 75.3%, which has become an important indicator for all parties in the society to study and predict this index. The correlation between the price of rebar ** and the spot price of iron ore rose from 71.5% in 2009 to 93.7% in 2013. A large amount of data and statistical analysis prove that the impact of rebar prices on iron ore spot prices is gradually increasing. At the same time, the price of rebar ** is always ahead of CRU's international steel price index.

The second is the initial success of the restructuring of the steel industry and the industrial upgrading of the steel industry. Rebar ** reduces the degree of information asymmetry in the steel market, improves market efficiency, and promotes the production and consumption of Grade III rebar through the delivery system and premium and discount system.

Thirdly, rebar and wire rod ** strictly enforce the brand registration management system, which will help increase the market influence and brand awareness of large-scale steel plant spiral products. It is to promote the implementation of China's iron and steel industry policies, to support the advantages and disadvantages, and to accelerate structural adjustment. The means of marketization.

Fourth, steel products have gradually become an important tool for the day-to-day management of steel-related companies. On the one hand, the price of rebar ** better reflects the change in the supply and demand relationship of the construction steel market in China. The price of steel ** has become an important reference for the spot price of related companies; on the other hand, more and more steel production and consumption are increasing. Circulation companies have prudently used steel materials to manage price risk, successfully achieved hedging, effectively locked in advance earnings, transferred price risks, and achieved remarkable results.