Shanghai Futures Exchange’s steel futures have been a phenomenal success – but what of the London Metal Exchange’s equivalent? As China’s is a semi-closed market, the rest of the international steel market could presumably use a liquid benchmark future. Or could it? Agnieszka Troszkiewicz reports.
The London Metal Exchange has reached what it called the
"milestone" of $1bn of trades in its Steel Billet Futures since
they were launched in February last year.
By August 26, over 35,000 contracts had been exchanged in
those 18 months, covering 2.3m metric tonnes of steel billet
– strips of steel used for making a wide variety of
The billion dollar mark was passed on the afternoon of
Wednesday August 19, after strong trading activity in July when
more than 3,500 Mediterranean Steel Billet contracts were
traded – equivalent to around 229,000 tonnes of
Liz Milan, commercial director at the LME, says the figure
shows the "endorsement of the contract" by the steel
Lotta Ulfsdotter, business manager for steel at the LME,
said in a statement on August 20 that the result showed "the
solid foundations that the billet contract has established
within the steel industry".
"We are increasingly seeing the LME price referenced in the
market for scrap and reinforcing bar," she said.
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