EXPERT VIEW: Steel shines on LME in 2017 but does it set a marker?

By Martin Hayes / January 22, 2018 / www.metalbulletin.com / Article Link

Total volumes in all of the London Metal Exchange's futures and options contracts rose by 0.5% last year, which is hardly a dramatic result one way or the other, although it did at least halt a run of annual declines.

Declines in aluminium and copper turnover were to an extent offset by increases in zinc, nickel and lead. As well, the exchange's new gold and silver contracts chipped in with some useful business in their debut half-year.But when it comes to 'big-number' year-on-year percentage increases, the prize for 2017 goes to the LME's two viable steel contracts - scrap and rebar. Scrap volumes rose by a hefty 526.4% to 307,532 contracts while rebar turnover was up 646% at 64,430 lots.Scrap volumes are now not far below those of NASAAC (North American Special Aluminium Alloy Contract), which turned over 349,328 lots last year. And both steel contracts traded more than Aluminium Alloy, which has been trading since 1992 - it totalled 61,723 lots last year.Steel scrap and rebar have succeeded in a relatively short time compared to the LME's first foray into ferrous futures - it launched deliverable steel billet in...

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