SHFE Steel Rebar futures

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The Shanghai Futures Exchange launched SHFE Steel Rebar futures on March 27.[1] The futures quickly developed into a very active contract and traded more than 7 million contracts in the month of June 2009, ranking as the third active contract on the SHFE, in terms of volume.[2]

Each SHFE steel rebar futures contract represents 10 tons of deliverable grade steel wire rod, which is defined as a standard hot-rolled ribbed bars(GB1499.2-2007) in the category of HRB400 or HRBF400 with a diameter of 16mm, 18mm, 20mm, 22mm, 25mm or a substitution, hot-rolled ribbed bars steel wire rod (GB1499.2-2007)in the category of HRB335 or HRBF335 with a diameter of 16mm, 18mm, 20mm, 22mm, 25mm as good delivery, and its delivery date is set as the 16th to 20th day of the spot month[3].

Each SHFE steel rebar futures contract is subject to a margin rate equivalent to at least 7 percent (currently 8 percent) of contract value (e.g., 2493 yuan = 3561 yuan [RB0909 last price on March 27, 2009] x 10 [tons/contract] x 7 percent) as well as a trading fee equal or below 0.02 percent (0.01 percent till December 31, 2009) of transaction value / contract.

It was reported in the Chinese media that SHFE steel wire rod futures and SHFE steel rebar futures together traded 870,000 contracts on the first day of mock trading on March 18. On March 27, 2009, the first day of real trading, lead month RB0909 traded 45,548 contracts, while all SHFE steel rebar futures traded total 360,228 contracts, equivalent to a turnover of 12.89 billion yuan. In April 2009, the first full month of trading, all SHFE steel rebar futures traded average daily volume of 192,235 contracts, more than ten times all SHFE steel wire rod futures traded during the same period.

A mere four months after the official launch at the end of March 2009, SHFE steel rebar futures traded a phenomenal 1,359,400 contacts per day in the last month of July, second only to DCE Soy Meal futures's 1,681,472 contracts in the entire Chinese futures market during the same period.

SHFE Steel Daily Volume2.JPG SHFE Steel Daily Volume.JPG


SHFE Steel Rebar futures
Exchange ''Shanghai Futures Exchange''
Settlement Cash settled
Contract Size 10 tons/lot
Pricing Unit 10 yuan (RMB)
Tick Value 10 yuan (RMB)
Contract Months January to December
Last Trading Day The 15th day of the spot month (postponed if legal holidays)
Note: This contract is electronic ONLY -- no open outcry
  No Open Outcry Electronic
Trading Hours N/A 9:00 am to 11:30 am, 1:30 pm to 3:00 pm
Ticker Symbol N/A RB
Price Limits N/A Within range of 5% above or below the settlement price of the previous trading day

References

  1. Shanghai exchange starts mock steel futures trades. Alibaba.com.
  2. {[cite web|url=http://www.shfe.com.cn/en/products/SteelRebar/contract/111168541.html%7Cname=Steel Rebar Futures Standard Contract Appendix of SHFE|org=SHFE.com|date=June 2, 2017}}
  3. Standard Contract of Steel Rebar of SHFE. Shanghai Futures Exchange.