As part of our drive to expand the suite of ferrous products for our customers, we offer two ferrous contracts, LME Steel Rebar and LME Steel Scrap. These cash-settled futures are designed to meet the needs of the metal community for new risk management tools.
The LME has a long-standing, close relationship with the steel and steel input industries. Our new contracts have been developed in response to market demand and in close consultation with steel producers and consumers. These contracts complete the production value chain for long steel - from inputs (LME Steel Scrap) to finished products (LME Steel Rebar).
For the first time, the global steel industry can take advantage of a 15-month tradeable forward curve for both steel scrap and rebar, which facilitates effective hedging of physical business across the value chain.
Market making programmes for LME Steel Rebar and LME Steel Scrap
We have introduced a market making programme to support the launch of our two new ferrous contracts. The programme forms part of our initiatives to enhance participation and liquidity on the LME and launched on the same day as the two new contracts.
Update Tuesday 1 August 2017: We have announced a tender process for the addition of one or more market makers to the current market making programmes, for applicants wishing to provide market making in the LME Steel Scrap and LME Steel Rebar contracts during Asian trading hours (9:00 - 18:00 Hong Kong time).
For more information please read LME Notice 17/254 'LME Ferrous Market Making Programmes - New Tender Process'
To make an application to become a market maker during Asian trading hours, please download and complete the application form.