China's Shanghai Futures Exchange said on February 20 that it had successfully completed the first physical delivery of its stainless steel futures contract amid supply chain disruptions linked to a coronavirus outbreak in the country.
The delivery was of 1,860 tonnes of metal and had a contract value of 24.46 million yuan ($3.5 million).
The companies involved in the settlement are Beibuwan New Materials Co. Ltd, Wuxi Taiming New Materials Co. Ltd and Xiamen International Trade.
The front-month February 2020 stainless steel contract debuted on the Shanghai exchange last September at 15,575 yuan/t. The March contract closed at 13,340 yuan/t on February 20.
China's economy has been hit by the coronavirus outbreak which has killed more than 2,100 and disrupted production. A stainless steel joint venture of Jiangsu Shagang and South Korea's POSCO shut down its production for one week.
(Writing by Tian Zhang Editing by Tammy Yang)
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