CMST(SH:600787) Qi Huo Ri Bao·2025-08-28 00:36Core Viewpoint - The establishment of the hot-rolled coil futures delivery warehouse at the China Storage Development Co., Ltd. Xi'an Logistics Center marks a significant turning point for the steel industry in Northwest China, enhancing risk management and marketing possibilities for local enterprises [1][4]. Group 1: Market Characteristics - The steel market in Northwest China faces unique challenges, including high transportation costs and significant price volatility due to geographical distance and seasonal demand fluctuations [2][3]. - Local steel mills experience dual pressures from high raw material costs and oversupply in the central and western regions, leading to increased operational risks [2][3]. Group 2: Infrastructure Development - The approval and establishment of the hot-rolled coil futures delivery warehouse fill a critical gap in the local delivery infrastructure, facilitating easier participation in hedging activities for local steel companies [3][4]. - The logistics center integrates logistics, warehousing, processing, and supply chain finance, promoting industrial clustering and enhancing regional economic competitiveness [4][5]. Group 3: Economic Impact - The successful delivery of the first standard warehouse receipt for hot-rolled coils serves as a model for other companies, encouraging participation in futures trading and risk management [6]. - The development of the steel industry in Northwest China is expected to create more job opportunities and stimulate the growth of related industries, contributing to the overall economic stability of the region [6]. Group 4: Strategic Significance - The Xi'an hot-rolled coil futures delivery warehouse is positioned as a key node in the "Belt and Road" initiative, enhancing China's pricing power for bulk commodities and supporting infrastructure projects along the route [6][7]. - The establishment of this facility is anticipated to facilitate the transformation and upgrading of the local steel industry, improving trading efficiency in the Northwest region [7].