LME Launches Steel Contract Using Shanghai Prices on October 27
The London Metal Exchange (LME) is set to launch a steel contract based on prices from its Shanghai counterpart on October 27. This move marks a significant step in China's efforts to expand its influence over global commodity pricing.
The LME announced an agreement with the Shanghai Futures Exchange in June for the new contract, which will be based on Shanghai hot-rolled coil steel futures. The exchange hopes to boost trading volumes and attract new customers by mirroring one of the world's most liquid steel contracts from the SHFE.
LME chief business officer MiRan Park said, 'From next month, the LME will be providing the market with a straightforward route to accessing what is widely regarded as the global benchmark for the flat steel sector.'