What Are Steel Futures?
Steel futures are traded on the London Metal Exchange. Contracts are priced in U.S. dollars per tonne, with a lot size of 65 tonnes +/- 3.5%. Material is stored on warrant within one of the global network of approved storage facilities for LME Steel Billet. Warrants created under the LME Steel Billet must conform to one of nine grade, each of which must meet certain physical requirements.
LME steel futures are clearable in U.S. dollars.
More information on LME Steel Futures:
- Contract specifications
Steel futures are also traded on the NYMEX under the symbol HRC. Each NYMEX contract represents 20 short tons, and is priced in dollars and cents per ton. NYMEX steel contracts are listed for 24 consecutive months, and settlement is financial.
NYMEX steel futures represent U.S. Midwest Domestic Hot-Rolled Coil Steel, and are subject to NYMEX position limits.
More information on NYMEX Steel Futures: