SHFE to adopt new quality standards for steel delivery
Starting November, the quality requirements for rebar delivery will be updated to the new national standard of GB/T 1499.2-2018 from the old GB 1499.2-2007 and that of HRC to GB/T 3274-2017 and JIS G 3010-2015 from the original GB/T 3274-2007 and JIS G 3101-2010 respectively, according to SHFE’s notice on October 15.
SHFE’s finetuning
is in line with the Chinese authorities’ requirements for better quality rebar
supplies from domestic steel mills, that will also be effective on November 1,
an SHFE official confirmed.
China’s General
Administration of Quality Supervision, Inspection and Quarantine and China’s
Standardization Administration announced in February to upgrade the quality
requirements for the domestically-produced rebar for higher standards including
greater pressure resistance via more advanced production technology starting
November, as reported.
Shortly after the
SHFE notice, 37 Chinese steel producers including Jiangsu Shagang Group and
Hebei Iron & Steel Group have accordingly revised their registered rebar
specifications and 13 steel mills updated their registered hot-rolled coil
specifications, all for SHFE deliveries, according to the SHFE website.
This has
been SHFE’s second quality upgrading notice recently after it raised the
delivery standards of wire rod contracts on August 31.
The standard
upgrading in rebar and HRC is unlikely to disturb the normal operations of the
Chinese steel mills because of the abundant grace period, Mysteel understands.
“We have stopped
producing old national standard rebars since October 1, but there will still be
some stocks with old quality tags circulating in the market for a while” an
official from Guangxi Liuzhou Iron and Steel Group Co in Southwest China’s
Guangxi said.
A steel trader
based in South China’s Guangdong province agreed, estimating that it will take
half a year for the old quality rebar to totally exit the Chinese market.
Concurrently, SHFE
also refined the Chinese expressions in the contract specifications of 13
futures contracts including nickel, lead, zinc, rebar and hot-rolled coil, so
as to minimize any misinterpretations by the investors.
Founded
in 1990, SHFE has launched 15 nonferrous metals, steel and petrochemical futures
products with the latest one being the crude oil futures on March 26 on its
wholly-owned subsidiary-Shanghai International Energy Exchange and it has
introduced its first options product – copper options on September 21.
Written by Olivia Zhang, zhangwd@mysteel.com
Edited by Hongmei
Li, li.hongmei@mysteel.com
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