The London Metal Exchange (LME) steel scrap contract has won the Futures and Options World (FOW) award for the most innovative new contract in the commodities and energy sectors, reflecting a successful year with more than 450,000 tonnes traded to date in 2016. The steel scrap contract was introduced one year ago.
The LME reports that it saw a record 147,000 tonnes of steel scrap traded in October, with participation coming from users in Europe, North America and Asia. The LME adds that steel scrap open interest is also steadily building and stood at 49,130 tonnes at the end of November.
The LME says its steel rebar contract also has experienced strong growth in 2016, with 78,060 tonnes traded to date, including a record 5,000 tonnes transacted Dec. 2, 2016.
“We are delighted to have won this award, which is a testament to the strong growth in trading of our scrap contract over the last year," says Matthew Chamberlain, head of business development at the LME. "With open interest gradually increasing, both our steel scrap and rebar contracts are being embraced as powerful risk management tools for the steel industry."
The cash-settled steel scrap and rebar futures contracts can be traded monthly out to 15 months and have a lot size of 10 tonnes.
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