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LME CEO aims to have first contracts with Shanghai futures exchange in 2024
Global Banking and Finance Review
Company
By Divya Chowdhury and Savio Shetty
DAVOS, Switzerland (Reuters) – The London Metal Exchange (LME) aims to have pilot contracts using prices from the Shanghai Futures Exchange (ShFE) this year, its chief executive told Reuters on the sidelines of the World Economic Forum (WEF) annual meeting.
My aim would be to have the pilot contracts out this year, or, at the very least, a clear roadmap of which contracts and their specifications,” LME CEO Matthew Chamberlain told the Reuters Global Markets Forum in Davos, Switzerland.
Reuters exclusively reported last month that the LME was planning new metals contracts using ShFE prices.
The specific contacts to be launched with ShFE were still under discussion, but the steel complex would have the most potential as it was a very-growth area, Chamberlain added.
“Steel is a very high-growth area for us, our Turkey steel scrap volumes are up 88% year-on-year,” he said.
On the issue of Russian metals in warehouses, Chamberlain said that he saw it exiting, as well as coming in.
“That backs up the anecdotal messages from the market, namely that much of the world is still consuming Russian metal.”
The share of available aluminium stocks of Russian origin in LME warehouses rose to 90.4% in December, from 78.8% in November, data on the exchange’s website showed.
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(Reporting by Divya Chowdhury in Davos and Savio Shetty in Mumbai; Additional reporting by Eric Onstad; Editing by Alexander Smith)
The London Metal Exchange (LME) is a global marketplace for trading industrial metals, providing price discovery and risk management services.
The Shanghai Futures Exchange (ShFE) is a major futures exchange in China, offering trading in various commodities including metals and energy.
Pilot contracts are trial agreements used to test new trading products or services before full-scale implementation.
The steel complex refers to the range of products and derivatives related to steel trading, which includes raw materials and finished goods.
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