LME may delist Detroit as steel delivery site
Oct 25, 2012 | 05:28 PM
| Andrea Hotter
NEW YORK The steel committee of the London Metal Exchange is considering delisting Detroit as a delivery location for the exchanges billet futures contract in a bid to boost the ailing product, according to sources familiar with the issue.
The exchange would then focus on marketing the contract to users in the Black Sea and Europe, and would consider listing new locations there including Bulgaria and Slovenia, the sources said.
LME-approved locations in Asia would remain in place, given the dominance of Chinese steelmakers in the market.
The aim of the proposal is to help the contract regain its correlation with the underlying physical market, which has fallen out of step and left the futures price at a current discount of between $150 and $200 to the cash price. ....
To access AMM's full content, please log in below. If you do not have an AMM account, we invite you to take a free trial or subscribe below.
Already a registered amm.com user?
Access to amm.com editorial content is granted only to paid subscribers and trialists. If you do not have an active account in your own name, please either subscribe or take a trial and you will have instant access to amm.com content. Sharing your login credentials with individuals who are not subscribers represents a violation of AMM copyright.
Every morning, every minute no matter how often you follow the markets, there's an AMM subscription to fit your needs.
Not sure if you are ready to invest in a subscription right now? Take a free, no-obligation trial. Start your free trial today.