Wire rod and rebar will be traded on the Shanghai Futures Exchange (SHFE) on March 27. A source with the SHFE warned that either steel producers or other investors should fully get to know the trading mechanism, rules and risks of the steel futures to prevent unnecessary losses.

He said steel producers should engage in the steel futures with a main purpose to ensure a steady operation and make sales and profits manageable, instead of making profits through the speculative trading.

They should work out interior organization structure, management system, decision-making flow, working flow and risk control measures adaptable to hedging.