LME launches three new steel contracts

The London Metals Exchange (LME) is set to officially launch on 19 July its three new cash-settled futures contracts for the steel market.

The new contracts are for northwest Europe hot rolled coil, scrap cfr Taiwan and scrap cfr India. These will add to the existing portfolio of futures contracts at the LME, including rebar fob Turkey, HRC fob China, North America HRC, and scrap cfr Turkey, Kallanish notes.

“Since 2015, the LME has launched a number of new cash-settled futures contracts focused on meeting the risk management needs of the steel, aluminium, electric vehicle and battery materials industries,” the LME says in a presentation. “Our cash-settled futures are structured differently from our physically settled contracts, yet share the same goal of providing the metals community with effective tools to manage price risk and the financial community with opportunities to trade metals markets.”

Emanuele Norsa Italy