The agreement will establish a multi-level commodity trading market system and win China more of a say in the pricing of metals.

He also points out that the deal comes at a weak point in the steel sheet market cycle.

Steelmakers were announcing price increases to try to reverse the trend.

The import price for steel billet in the United Arab Emirates has narrowed over the past week.

Buyers were reluctant to book large tonnages before prices hit a market bottom and end-user demand begins to improve.

Indian steel demand to improve in H2, but weak H1 expected: Crisil.

Currently, India has a production capacity of about 140 million tonne (MT) capacity and produces over 100 MT of steel annually, he said.

The listed futures at the Shanghai Futures Exchange are eight contracts to be delivered from February to September of 2020.