Date：March 21, 2014
Source: Futures Daily

　　Hot-rolled coil futures, the third steel futures in China, is launched and traded at the Shanghai Futures Exchange (SHFE) today. In its announcement yesterday, the SHFE said that the first batch of hot-rolled coil futures is composed of 9 contracts, namely HC1407, HC1408, HC1409, HC1410, HC1411, HC1412, HC1501, HC1502 and HC1503, sharing an benchmark price of RMB3,316/ton.
　　It is learned that in East China market, carbon steel coil with medium thickness and width steel strip of 5.75×1500×C, in line with criteria for standard products of the SHFE hot-rolled coil futures, is entitled to a prevailing quotation from RMB3,300 to 3,350/ton.
　　Xie Shuangqing, an analyst of Hua’an Futures Co., Ltd., said that as for hot-rolled coil futures, the benchmark price of RMB3,316/ton is more proximal to the spot market with an relatively reasonable price.
　　The hot-rolled coil futures, currently traded at only about RMB3,300/contract, indicates a lower threshold for participation among futures products for black-colored products chain that will spur an active trading market, according to an insider.
　　“The overall trend of industrial products market is relatively weak and lacking in bullish factors in its fundamentals. The hot-rolled coil futures may encounter short selling pressure on the launch day,” said Xie.