Someone once said there's this odd thing about the future-it never gets here.
But if exchange-traded steel futures contracts ever take off, 2007 may be looked back on as the pivotal year.
The upstart Dubai Gold and Commodities Exchange (DGCX) beat those bigger exchanges to the punch by launching physically delivered steel rebar futures contracts.
In 2007 major futures exchanges such as the London Metals Exchange (LME) and the New York Mercantile Exchange (NYMEX) defined their strategies, made firm commitments and moved that much closer to the planned 2008 steel futures contracts launches.
Meanwhile, the upstart Dubai Gold and Commodities Exchange (DGCX) beat those bigger exchanges to the punch by launching its first physically delivered steel rebar futures contracts on October 29, 2007.
Other smaller, largely unproven exchanges trading steel futures include the National Multi-Commodity Exchange of India (NMCE), launched in 2004 and widely recognized as the world's first exchange to offer steel futures contracts. The MCX trades flat-rolled steel contracts and two long-product contracts.
The National Commodity & Derivatives Exchange (NCDEX), also based in India, launched carbon steel ingot futures contracts in 2005. In China, the Shanghai Futures Exchange (SHFE) also has plans to trade steel contracts.
There is also considerable over-the-counter (OTC) action already taking place, principally handled by Koch Metals Trading, which offers swaps for flat-rolled steel, bringing together buyers and sellers.
As 2007 comes to a close, this feature outlines the progress of where steel futures contracts currently stand at the various exchanges.
Created: December 13, 2007
Return to top
Next Page: LME plans on getting physical with billet
For similar news, start a
Printer-friendly format