Steel traders still wary about futures

Although exchange officials are keen to launch steel futures on the Shanghai bourse, industry experts and commodity brokers are not too sure about the widespread participation of industry players.

Steel dealers, who made significant losses due to the price meltdown in the spot market last year, are unlikely to have the spare cash necessary to play the futures market.

"We do not have the money to trade in steel futures now. Also, we are not familiar with the rules, so it is better to wait and watch," said Wang Bin, a steel dealer from Tianjin.