WSD targets steel scrap futures

Archiv – United States | US steel market analyst World Steel Dynamics (WSD) has formed a joint venture known as the World Steel Exchange (WSE) to list futures contracts for steel scrap. United States | US steel market analyst World Steel Dynamics (WSD) has formed a joint venture known as the World Steel Exchange (WSE) to list futures contracts for steel scrap.
The venture represents a new direction for WSE’s partner the Chicago Climate Futures Exchange (CCFE), which operates emissions markets in Europe and the USA. However, it will fit with the company’s broader mission, according to founder and Chairman Richard Sandor.
A Commodity Futures Trading Commission Designated Contract Market, CCFE is part of Climate Exchange plc, a publicly-traded company listed on the AIM division of the London Stock Exchange. The contracts will trade and clear on CCFE’s Internet-accessible trading platform and will be based on the SteelBenchmarker family of price indices and other indices.
’The trading of futures contracts on the World Steel Exchange will give those involved in buying or selling steel scrap, steel products and steelmakers’ raw materials the opportunity to hedge the price risk, which is a critical need given the volatility of prices in these sectors,’ explains Peter Marcus, WSD’s Managing Partner. ’One of the differences between us and the LME (is that) we get our prices only from suppliers not from the financial investors. It’s a price (system) that is less exposed to being (influenced) by financial players.’