Strong sense of speculation, hedging into speculation. Many steel traders are nominally hedging, and as a result, they pay too much attention to the profit and loss of futures accounts, which makes the transaction become unilateral speculation and break away from the spot position. Some steel traders even broke away from the main business of steel trade and rushed to participate when they saw that the futures markets such as soybeans and rubber were good. However, steel traders do not know these goods. Some inexperienced steel traders often like to gamble in the market, start with heavy hands and over-trade, ignoring risk control, resulting in serious losses.

Lack of continuity and long-term. Some steel traders are eager for quick success and instant benefit. When the market is good, they will enter the market to participate, and when the market is bad, they will give up. They can't calm down and study hard, and as a result, they misjudge the market and lead to the failure of the transaction.

Lack of professionalism. The lack of futures talents restricts steel trading enterprises from participating in futures trading. After all, the futures market is unfamiliar to these steel traders who are used to spot pricing and spot delivery. In addition, many steel traders lack financial knowledge and simply regard futures as spot, ignoring some special factors in the financial market. For example, macroeconomic changes and market sentiment, the correlation of other varieties and so on. If steel traders can't effectively grasp the price trend, seasonal law and regional supply and demand characteristics, then the hedging effect will be greatly reduced.

Due to the above problems, the enthusiasm of steel traders to participate in futures trading is generally not high. Once bitten, twice shy, some steel traders quit after encountering setbacks in futures trading. Therefore, the participation of steel traders in futures is low at present.