News

Straits Financial recorded its first trade for the newly released LME HRC futures contract

Apr 29, 2019

On 11th March 2019, the London Metal Exchange (LME) launched its new hot-rolled coil (HRC) futures contract – the LME Steel HRC FOB China, cash-settled against Argus’ HRC FOB Tianjin index. The contract is an addition to LME’s suite of ferrous metals contracts, following the successful launch of LME Steel Scrap and LME Steel Rebar in 2015.

As an important producer and exporter, China plays a significant role in the steel market. The FOB China steel price serves as a global benchmark for the steel industry. In an increasingly volatile market where price risk management is essential, this contract offers excellent liquidity and trading opportunities given the influential position of Chinese steel.

Straits Financial is one of the pioneers in Asia to offer this new contract to its clients and has done its first trade on 26 Apr 2019. The contract opens up hedging and arbitrage opportunities for producers and traders as we provide access to both the London Metal Exchange and Chinese exchanges.

With an account at Straits, traders can trade a full suite of listed and over the counter products at LME including HRC, Alumina and minor metals like cobalt and Molybdenum. Straits is backed by a highly experienced and knowledgeable brokerage team specialised in the metals markets. Interested market participants may contact us to learn more about trading strategies for the hot-rolled coil futures contract or for the metals market in general.


About Straits Financial Group 

Headquartered in Singapore, Straits Financial Group is a brokerage house that offers a full spectrum of derivatives & OTC products, including trade facilitation for physical commodities. Established affiliate offices are in Chicago, New Jersey, Shanghai and in Jakarta. Straits Financial is a full Clearing Member of the Chicago Mercantile Exchange (CME), Chicago Board of Trade (CBOT), New York Mercantile Exchange (NYMEX), the Commodity Exchange (COMEX), CME Clearport, Dubai Mercantile Exchange (DME), New Zealand Exchange (NZX), CBOE Futures Exchange (CFE), Nasdaq Futures (NFX) and Asia Pacific Exchange (APEX). It is also the first batch of Overseas Broking Special Participant of the Shanghai International Energy Exchange (INE). Straits Financial offers clearing access to all major global commodity exchanges. For more information, visit www.straitsfinancial.com.


DISCLAIMER:
 This document is issued for information purposes only. This document is not intended, and should not under any circumstances to be construed as an offer or solicitation to buy or sell, nor financial advice or recommendation in relation to any capital market product. All the information contained herein is based on publicly available information and has been obtained from sources that Straits Financial believes to be reliable and correct at the time of publishing this document. Straits Financial will not be liable for any loss or damage of any kind (whether direct, indirect or consequential losses or other economic loss of any kind) suffered due to any omission, error, inaccuracy, incompleteness, or otherwise, any reliance on such information. Trading commodity futures and options products presents a high degree of risk, and losses in excess of your initial investment may occur. Past performance or historical record of futures contracts, derivatives contracts, and commodities is not indicative of the future performance. The information in this document is subject to change without notice.  The impact on market prices due to seasonal or market cycles and current news events may already be reflected in market prices.