The London Metals Exchange is expected to launch a new futures contract for European hot rolled coil from 19 July, Kallanish learns from sources.
Two years ago the LME launched its first HRC contracts, for China and North America. At that time, it postponed the launch of a contract for the European market to solve some practical issues, including currency denomination.
The new contract will be settled in USD, Kallanish understands.
In the first quarter some 4,468 futures for the LME HRC North America contract were traded, equivalent to 44,680 tonnes in the physical market. For the LME HRC Chinese contract, 14,552 contracts were traded in Q1, equivalent to 145,520t.
Emanuele Norsa Italy