Trading in China's first steel futures contracts are expected to commence soon, especially after their importance has been singled out by the country's economic planners at a recent meeting to boost domestic economic growth.

Trading of the new contract on Shanghai Futures Exchange (SHFE) would begin shortly after the 2009 Spring Festival, said a source close to the top management of the bourse.

Steel is an essential commodity close to the core of the government's 4 trillion yuan economic revival plan. The stimulus plan is expected to create a massive demand for steel products for construction of public infrastructure such as railways, highways and bridges.