Ferrous metals

We offer two ferrous contracts, LME Steel Rebar and LME Steel Scrap; cash-settled futures which are designed to meet the needs of the metal community for new risk management tools. View the contract specification for both our scrap and rebar contracts.

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.

LME Ferrous Liquidity Provider programme for LME Steel Rebar and LME Steel Scrap

We have introduced a Liquidity Provider 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 launches on 1 January 2018.

Any interested parties will be able to apply to the Exchange at any point in time from the publication of Notice 17/414 until 15 November 2018. The Exchange must receive applications by the fifteenth day of the month in order to begin participating in the New Ferrous LP Programme from the first day of the following month. In order to participate in the New Ferrous LP Programme from 1 January 2018, applications must be received by the Exchange by 29 December 2017.

For more information please read LME Notice 17/414 New Ferrous Liquidity Provider Programme

Please download and complete the application form

Selected Ferrous Liquidity Providers

Pursuant to the application process and subject to the eligibility criteria set out in LME Notice 17/414 / LME Clear Notice 17-060, the Exchange has selected the following applicants to participate as liquidity providers in the New Ferrous LP Programme with effect from 1 January 2018:

Liquidity provider Commencement of participation in the New Ferrous LP Programme 
Alpha Academic Ltd 1 January 2018
Ferrometrics LLC
1 January 2018
Gerald Metals SA
1 January 2018
Nine Square Multi Trading DMCC 1 February 2018

Ferrous fee schedule

Contract Type Category  Trading (USD)  Clearing (USD) Total (USD) 
Exchange Ring/Kerb/Basis n/a n/a n/a
Non-ring 0.07 0.03 0.10
Give-up 0.03 0.03 0.06
Client Short-dated carries n/a n/a n/a
All other 0.07 0.03 0.10
Option exercise/agreement n/a n/a n/a
Cash settlement fee - 0.02 0.02
Delivery Fee n/a n/a n/a

 

Contact us

For further information please email our Ferrous team.