China's top futures exchange is waiting for approval to launch construction steel futures contracts, as a hedging tool for the global peak in prices.

The Shanghai Futures Exchange, one of China's three derivatives exchanges, has applied to host trading in wire rods used in construction.

Robust economic growth is transforming mainland cities into vast construction sites. Analysts expect China will see a 12 percent jump in steel demand this year.

Steel futures trading will enable users and producers to sign futures contracts and curb possible losses from volatile prices.

China has launched several futures contracts on commodities from corn to fuel oil over the past two years as the world's seventh-largest economy plugs into global trade.

(CRI.com March 14, 2005)