|
|
|
Steel billet is a semi-finished product used in the production of steel reinforcement bars (rebar).
The significant price correlation between billet and rebar suggest that industry could price their rebar using the LME Steel Billet price as a benchmark, plus any conversion costs, premiums and profit.
Users of rebar, mainly those in the construction sector, could therefore also utilise the LME contract as a price risk management tool and hedge their exposure to price volatility.
![]() |
| Other related Content:
|
|
|
|
Watch how a scrap recycler uses the LME to manage risk