Jan. 6, 2009 (China Knowledge) - The Shanghai Futures Exchange (SHFE) is planning to launch the steel futures contracts on the mainland after the Lunar New Year, according to an unnamed industry sources.

The Chinese futures exchange will team up with the Dubai Gold and Commodities Exchange, India's National Commodity & Derivatives Exchange and the Multi Commodity Exchange of India, as well as the London Metals Exchange and Chicago Mercantile Exchange to jointly launch the trading.

SHFE would start trading futures contracts on wires and screw steel as early as March or April this year, the insider disclosed.

Wires and screw steel, with a combined consumption of around 200 million tons a year, account for about 40% of China's total steel consumption.

No specific timetable for the debut of the new trading product is available at the moment.