Updated
Updated · Bloomberg · Jun 18
LME to Launch Shanghai-Linked Steel Futures in October as China Prices Reach Global Investors
Updated
Updated · Bloomberg · Jun 18

LME to Launch Shanghai-Linked Steel Futures in October as China Prices Reach Global Investors

3 articles · Updated · Bloomberg · Jun 18

Summary

  • October will bring a new LME hot rolled coil futures contract that settles against the Shanghai Futures Exchange’s monthly US-dollar HRC price.
  • The contract gives global investors direct exposure to Shanghai steel prices through the London market, extending access to a key Chinese benchmark.
  • LME said the launch marks another step in the internationalization of Chinese commodities futures, linking overseas trading more closely to mainland price formation.

Insights

As Shanghai's steel price goes global, is the dollar's grip on commodities finally starting to weaken?
Can a price from China's state-influenced market truly win the trust of global traders?