China is the largest producer and consumer of steel in the world. In 2004, China's steel output accounted for nearly 30% of the global output. It is estimated that the crude steel production capacity in China in 2005 will be 333 million tons, and the steel demand will reach 270 million tons. At the same time, China is a big steel importer, importing 29.3 million tons of steel in 2004. For such a big country in steel production, consumption and trade in the world, after Baosteel was forced to accept the demand of the international mining giant iron ore for a sharp price increase on February 28, 2005, the voice of the domestic industry demanding the resumption of steel futures trading is also growing. How to become an international steel pricing center and safeguard China's economic interests has become the focus of more and more people's attention. The predecessor of Shanghai Futures Exchange launched a wire futures contract with a diameter of 6.5 mm at the beginning of 1994, with a total turnover exceeding1100,000 tons. However, due to the lag of domestic laws and regulations at that time, large-scale futures products with large trading volume and strong liquidity lacked a good operating environment.

From 1996, the crude steel output exceeded1000000 tons for the first time, and since China's crude steel output jumped to the first place in the world, it has been increasing year after year, and the steel output has always ranked first in the world. In 20 10, the output of crude steel reached 627 million tons, an increase of 53 million tons compared with 2009, with a year-on-year increase of 9.3%, accounting for 43% of the global output.