Long products chain futures contracts - will mills take the plunge?

摘要

The LME is in November to launch futurescontracts in ferrous scrap and steel rebars,in a bid to attract players to a market thatmay help hedge product price risk andtemper volatility.“The LME exists to help participantsweather difficult markets, and to provide themeans to hedge risk amid price fluctuations,”the exchange’s team of steel specialists saidthis week. “We have received strong supportfrom the steel industry for the launch ofthese cash-settled scrap and rebar contracts,which will cover the supply chain of longsteel products from initial inputs through tofinal products.”