The Central Japan Commodity Exchange said it will list iron scrap for the first time in the world and begin futures trading on it Oct. 11.
With the contract size set at 20 tons, scrappers, trading houses and other market participants will buy and sell scrap produced in such industrial processes as stamping work at automobile factories, said the exchange known as the C-COM.
The C-COM decided to list iron scrap in response to growing calls for a mechanism to stabilize its price as China's rapid economic growth may send it soaring.
The exchange said it plans to convert itself from a membership organization into a stock company system to streamline operations.
In 2003, C-COM was ranked as the second largest commodity exchange in Japan and seventh largest in the world in terms of annual volume of contracts traded.
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