Ferrous scrap will be the "next big thing" for commodity-based derivatives in Asia, according to the Singapore Exchange (SGX).
It is one key commodity that the SGX is looking at to expand its slew of ferrous derivatives under the "virtual steel mill" concept, in addition to the iron ore and coking coal contracts that are already trading well on its platform, the exchange's head of commodities, William Chin, told Fastmarkets MB ahead of the Singapore Iron Ore Week 2019, which takes place this week."The ferrous scrap markets are unfettered by state intervention, and the 'bottom-up' participation by the scrap market participants makes ferrous scrap a useful tool for the virtual steel mill. That is why ferrous scrap is of very high priority for us," he said.This is especially since the steel world is shifting toward a greener form of steelmaking. China, for one, is implementing a strict capacity replacement...