China has started cautioning state-owned enterprises (SOEs) regarding overdependence on imported commodities and overexposure in commodity-based financial derivatives, market sources told Fastmarkets this week.
In the past few days, there had been rampant market chatter the country's State-owned Assets Supervision & Administration Commission (Sasac) asking SOEs to report their positions in commodity-based financial derivatives such as futures amid an ongoing push to reduce these exposures, sources said.Hot metal costs increased by $66.34 per tonne on a daily average basis in May to $524.40 per tonne, according to Fastmarkets data. This caused the hot metal to hot-rolled coil spread in eastern...