No need for scrap futures contracts: Abbott

Oct 30, 2013 | 10:33 AM | Michelle Madsen

Tags  scrap, scrap futures, BIR, Bureau of International Recycling, Martin Abbott, LME, London Metal Exchange, Michelle Madsen

WARSAW, Poland — Martin Abbott, former chief executive officer of the London Metal Exchange, dismissed the need for scrap futures contracts at a recycling industry conference in Warsaw.

Derivatives for primary metals should be used as benchmark products for scrap merchants wishing to hedge, rather than scrap futures contracts, Abbott said Oct. 29 at the Bureau of International Recycling (BIR) meeting.

Metals derivatives should be based on homogenous materials, he said, noting that stainless steel scrap traders already use the LME nickel contract to hedge the nickel content of their product.....





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