COMMENT: Why China’s new steel scrap futures will be a game changer

摘要

China’s upcoming steel scrap futures looks set to be a game changer for the international community dealing in the steelmaking raw material. It will open up a whole new world of opportunities for both domestic and international traders, especially those who have been looking to capitalize on the massive size of China’s domestic scrap market. While the Dalian Commodity Exchange (DCE) has yet to release the specifications and details of its scrap contract, its imminent launch comes at the right moment. For one, China is looking to allow ferrous scrap imports again in 2021 after working to standardize scrap grades in the past two years.