The widespread adoption of steel price indices used for risk management will depend on educating steel industry stakeholders on the benefits and best practices of hedging while also overcoming the challenges of the fragmented nature of the steel markets, a panel of experts said at the London Metal Exchange's Ferrous Focus Session on Thursday October 31.
Educating steel industry stakeholders, in particular consumers' procurement teams, will be essential to effecting culture change in an industry that lags behind the non-ferrous markets when it comes to derivatives trading."The ferrous market still has a way to go to catch up with the more established hedging practices we see on the non-ferrous side," Jenny Boyce, corporate metal sales at BNP Paribas, said. In addition to stakeholders understanding...