LME starts first steel contract with Shanghai exchange
In short
The London Metal Exchange started trading a new hot-rolled coil steel contract on Tuesday. It is the first product from its collaboration with the Shanghai Futures Exchange, and more than 550 lots traded in the first two active months.
Two 2027 contracts were held back because of a possible technical issue. This matters because it shows early demand for the contract, but it is still not clear what the technical problem is.
What the reporting says
The London Metal Exchange began trading its new hot-rolled coil steel contract on Tuesday, the first product from its collaboration with the Shanghai Futures Exchange. More than 550 lots traded in the first two active months, while two 2027 contracts were held back over a potential technical issue. The immediate market response shows early interest, but the reporting does not explain the issue or whether trading will be delayed further.
Why it matters
The London Metal Exchange launched a new hot-rolled coil steel contract on Tuesday, marking the first output from its collaboration with the Shanghai Futures Exchange. Trading volume topped 550 lots in the first two active months, but two 2027 contracts were withheld because of a potential technical issue. The reporting does not say what the issue was or whether it will affect future trading.