China is the largest steel producer and trader in the world. The introduction of rebar futures is of great significance to the domestic steel industry. Analysts pointed out that the steady introduction of wire rod and rebar futures varieties is of great significance for developing the steel industry and upgrading its structure. It can not only provide tools for iron and steel production and circulation enterprises to hedge and manage risks, but also provide price information for iron and steel enterprises, so that enterprises can arrange production reasonably, adjust sales or purchasing strategies, ensure the orderly production and operation activities, and thus reduce the impact of frequent price fluctuations on the smooth operation of enterprises. There are hundreds of thousands of domestic steel traders, more than 0/000 steel enterprises/KLOC, and more infrastructure enterprises in the industrial chain. Their participation is of great significance to the development of domestic futures market.
50% of China's steel products are directly sold by steel enterprises, and the other 50% are represented by traders. Without rebar futures, these traders can't get the goods when the steel supply is in short supply and the price is rising, but when the demand is shrinking, the price is falling or even losing money, these traders have to purchase goods to maintain the relationship with steel enterprises. Therefore, the introduction of rebar futures, for these traders, has a good tool to hedge risks, whether steel prices rise or fall, can ensure the stability of business.