LME debuts first contract from Shanghai exchange collaboration
SINGAPORE - The London Metal Exchange's (LME's) new hot-rolled coil (HRC) steel contract, the first product to come out of its collaboration with the Shanghai Futures Exchange, began trading on Tuesday.
It is the first time the SHFE has made a metals price available for trading on another exchange. By 05:20 GMT, more than four hours into the debut, 243 lots had changed hands, according to the LME's website.
The new contract could support the LME's efforts to increase traded volumes and attract new customers by settling against one of the world's most liquid futures contracts.
The launch also advances China's agenda to boost its influence in global commodity markets, with Beijing pushing domestic exchanges to innovate and expand overseas as it seeks greater sway over benchmark prices.
The success of the contract will depend on how widely the market accepts it, said Thomas Hiemstra, head of steel derivatives at steel trader M7 Metals.
"I don't think it's going to happen overnight," he said. "It's something that will need to be tracked over the next several months."
The LME Steel HRC Shanghai contract is cash-settled against the SHFE's HRC price, converted from yuan into US dollars by the LME's sister company Commodity Pricing and Analysis Limited.
The Shanghai contract tracks China's large domestic steel market and traded 169-million lots in 2025, equivalent to 1.69-billion metric tons.
The LME's other China HRC futures contract, which is based on Argus Media's assessment of prices for HRC exported from Chinese ports, traded 139 109 lots in the same year.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
North Ridge Pumps is an independent manufacturer of pumps. We have a proven track record for product support and customer service throughout the...
VISIT SHOWROOM
As a reticulator, Egoli Gas provides natural gas to homes and businesses via underground pipes.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
