Via a notification issued on 9 Jul’21, the Shanghai Futures Exchange (SHFE) has changed the weight condition for steel rebar and hot-rolled coil contracts from actual to theoretical weight. The change is supposed to come into effect from 22 Aug. Sources informed SteelMint that the change has been mooted to simplify the delivery mechanism as the futures market seeks to align with the spot market which follows theoretical weight. Monetary policy easing in China drove SHFE rebar and HRC futures higher on 12 Jul, as per reports.
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