Benefits for Rerollers

LME Steel Billet futures offer a number of benefits for rerollers, including the ability to:

1. Offer a long-term fixed sales price and lock-in a profit margin
   
   
2. Hedge the timing difference between raw material purchases and the sale of finished product
   
   
3. Use the Exchange delivery mechanism as a source of steel billet in times of extreme shortage
   
   

The entire supply chain benefits from a transparent and accurate pricing mechanism.