- Steel rusts and deteriorates over time
- Storage and transportation costs are very high relative to the value of the metal
- Scrap is difficult to transport due to its irregular shape and composition
- benefits physical players as it allows them to hedge every step of the value chain
- gives financial players the opportunity to arbitrage between different stages of the value chain
- for LME Steel Scrap: TSI Turkish Imports HMS #1&2 80:20, CFR Iskenderun Port
- for LME Steel Rebar: Platts Rebar, FOB Turkey Port.
We are confident that these benchmarks and the methodologies used to calculate them are comprehensive, taking account of IOSCO standards, and are highly respected within the steel industry.
View the LME Steel Scrap contract specification
View the LME Steel Rebar contract specification
The specifications are subject to final regulatory approval.