BEIJING, May 31 -- The Shanghai Futures Exchange and China¡¯s futures regulator are considering the launch of steel futures, which to date have eluded efforts to identify a product standard enough to provide trading liquidity.

    ¡°We have already completed studies for futures in rebar and in wire rod, and proposed them to the regulators,¡± Wang Lihua, chairman of the exchange, said Saturday.

    ¡°Rebar is an appropriate product for China because it accounts for a third of the market here. Of course, we¡¯d like to launch them together, but we don¡¯t know what the regulators will decide,¡± Wang said.

    The London Metal Exchange said earlier this month it would decide by the end of the year whether to launch the first globally-traded steel futures contract. Earlier attempts to do so have foundered over the difficulty of choosing among the many types of steel.

    Steel and sugar futures are likely to be approved by the China Securities Regulatory Commission (CSRC), before any futures or options contracts, said Yang Maijun, director general of the CSRC¡¯s futures supervision department, without confirming a timetable for either product.

    Shanghai Futures Exchange officials had earlier indicated they would prioritize an options contract based on Shanghai¡¯s copper futures. The exchange is also studying financial futures.

    The exchange signed a memorandum of understanding Friday with the Tokyo International Financial Futures Exchange (TFX) to cooperate on the development of financial futures, said Shozo Ohto, senior managing director of the TFX.

    The Shanghai exchange is also studying zinc futures, Wang said.

    ¡°China has become a net zinc importer. So even though zinc futures are a thorny topic, we think there is a need,¡± she said.

    (Source: Shenzhen Daily/Agencies)