LME to launch 7 contracts including two HRC on Mar 11
The two new regional HRC contracts are HRC N. America and HRC fob China, which will be cash-settled with 15 continuing months with the lot size at 10 short tons and 10 metric tonnes respectively, all being the same as LME’s existing scrap and rebar contracts.
“Based on market demand for HRC contracts, the LME will broaden its
steel offering following the successful launch of LME Steel Scrap and LME Steel
Rebar in 2015, which have together traded almost 10 million tonnes by now,” LME
stated in one of the January 17 releases, adding that the exchange is also
working on a Northern Europe HRC contract “in response to feedback from market
participants”.
LME’s two HRC contracts are expected to provide the ferrous commodity
investors with a possibility of location arbitrage against the HRC contracts on
the Shanghai Futures Exchange that have introduced rebar, wire rod and HRC
since as early as on March 27 2009, Mysteel understands.
The five new nonferrous contracts to be launched by LME comprise
alumina, aluminium premium duty paid US Midwest, aluminium premium duty unpaid
European, with the lot size being 50 metric tonnes for the first one and 25
metric tonnes for the latter two, as well as cobalt with lot size at 1 metric
tonne and molybdenum oxide with the lot size at 2,205 pounds.
“We've developed this new suite of products to specifically reflect
global metals markets’ needs to help to reduce losses and protect against
volatile prices,” LME stated in its January 17 release.
As for the HRC contracts, LME will refer to the related pricing indices
from Platts and Argus, and for the other nonferrous metal contracts, the
pricing index providers will be Platts, FastMarkets, and CRU, according to the
post.
LME, founded in 1877 and headquartered in London, was acquired by Hong
Kong Exchanges and Clearing Ltd in December 2012, and it has so far launched 18
futures products including nonferrous base metals, minor metals, precious
metals and steel with the base metals bearing the longest history.
Edited by Hongmei Li, li.hongmei@mysteel.com
India's base metals markets poised for steady growth but challenges remain
Feb 21, 2024 08:30
2024 Nonferrous Metals Annual Conference
Nov 09, 2023 17:50
Daily: Some market participants in CN turn to bullish on Cu prices
Jan 12, 2023 15:51
JFE Shoji acquires U.S steel frame manufacturer
Aug 22, 2022 13:30