LME has taken a few structural steel commodities and should be going live with them this spring. If they can get flat rolled steel futures (automotive) going, plus plate and structural; the volumes and values traded will dwarf all current metal contracts combined. Keep your eyes peeled for steel to start trading. Take a look at steel on the LME website. http://www.lme.com/5550.asp I think the NYMEX should jump on board.
Excellent idea. I am in the steel fab industry and have always seen good trading opportunities in steel but no way to execute them. This could make that happen. Only thing wrong here is the delivery. They should have made the contracts so that people can hedge from the time they quote a contract to receiving a contract for steel....without requiring delivery. Millions is lost every day around the world by firms that didn't buy the option to purchase their steel at a fixed price for future delivery.
I heard initially that they were financial only; no physical delivery. I guess structural doesn't perish like automotive does. I don't think HR CR will have a physical delivery.
Their information is somewhat ambiguous. Financial with the option of delivery works for me. Its just that this source says all LME contracts are physical: http://www.commodities-now.com/content/market-news/market-news-2007100934555.php?PHPSESSID=34967b Good article that mentions the steel contracts...