Steel futures inch toward acceptance
Nov 30, 2012 | 03:27 PM
| Anne Riley
NEW YORK Steel derivatives continue to face an uphill battle as concerns over illiquidity and price risk keep some would-be participants on the sidelines, but advocates of the nascent products maintain swaps and futures will find a place in the global steel sector yet.
Once the realm of energy, agriculture and base metals, the futures markets have been expanded in recent years to encompass six steel productsincluding hot-rolled coil, rebar and billetas well as a number of related raw materials, from iron ore to ferrous scrap.
Although some steel derivatives have started to see tractionwith the newest product, CME Groups No. 1 busheling futures contract financially settled against AMMs Midwest Scrap Index, trading more than 3,000 tons in its first full month in existenceothers have been slow to gain acceptance in the marketplace.....
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.