The Shanghai Future Exchange will launch stainless steel futures later this year, the exchange's head Jiang Yan said at the fourth China Steel Derivatives International Conference held in Shanghai on Friday.

Preparations were also made to launch aluminum and ferrochromium futures at the exchange, Jiang said.

As Jiang explained, the iron and steel industry is an important pillar of China's economy. The output of China's iron and steel industry accounts for about half the world's total. The domestic market is fully competitive and price fluctuations are clear. Therefore, there is strong demand to avoid risk.

To that end, the exchange rolled out products such as wire rod futures in 2009. The steel series futures have enhanced the pricing power of China's steel industry, helping companies manage price risks and better serve the real economy, Jiang said.

Jiang also added the exchange will advance its higher level of opening-up, making existing futures products available to overseas investors to enhance China's global pricing power for key products.