WSEM says NASDAQ will promote its ferrous scrap contract

WSEM says NASDAQ will promote its ferrous scrap contract
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The NFX futures exchange, which is owned by New York-based Nasdaq, has agreed to launch the Midwest U.S. Shredded Steel Scrap TSI Index futures contract on its platform.  According to an announcement by Englewood Cliffs, New Jersey-based World Steel Exchange Markets (WSEM), the shredded scrap futures will be “the cornerstone for a suite of NFX ferrous products.”

The contract is 20 gross tons and will be listed for the current month and the next 11 months, says WSEM. It will trade 22 hours per day from 7:00 p.m. Sunday (Eastern time) through Friday at 5:00 p.m. (Eastern time).

Its 17 original and committed clearing members include the largest commodity brokers and energy traders in the United States, according to WSEM. “At least three market makers will be making prices for the steel scrap contract on day one,” says the firm.

Six independent software vendors will provide access to the trading platform, according to the announcement.

“NFX shredded futures will provide an effective price-risk management tool for: a) 50-60 million metric tons of annual U.S. scrap consumption; b) 90+ million metric tons of annual global scrap trading; and c) 200+ million metric tons of non-Chinese steel product output each year whose price is impacted by changes in the steel scrap price,” writes WSEM’s Peter Marcus in a letter announcing the agreement.

Marcus also points to the changing nature of China’s steel and scrap markets as a reason for traders to consider futures contracts. “Rising Chinese steel scrap exports in the years ahead will stimulate steel scrap futures trading,” he writes. “The country’s obsolete scrap recovery, based on the analysis in WSD’s Global Metallics Balances system, rises from about 80 million metric tons per annum at present to about 200 million metric tons in 2025 and, then, to about 400 million metric tons in 2035.”

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Source: Recycling Today
WSEM says NASDAQ will promote its ferrous scrap contract
<![CDATA[The NFX futures exchange, which is owned by New York-based Nasdaq, has agreed to launch the Midwest U.S. Shredded Steel Scrap TSI Index futures contract on its platform.  According to an announcement by Englewood Cliffs, New Jersey-based World Steel Exchange Markets (WSEM), the shredded scrap futures will be “the cornerstone for a suite of NFX ferrous products.”   The contract is 20 gross tons and will be listed for the current month and the next 11 months, says WSEM. It will trade 22 hours per day from 7:00 p.m. Sunday (Eastern time) through Friday at 5:00 p.m. (Eastern time).   Its 17 original and committed clearing members include the largest commodity brokers and energy traders in the United States, according to WSEM. “At least three market makers will be making prices for the steel scrap contract on day one,” says the firm.   Six independent software vendors will provide access to the trading platform, according to the announcement.   “NFX shredded futures will provide an effective price-risk management tool for: a) 50-60 million metric tons of annual U.S. scrap consumption; b) 90+ million metric tons of annual global scrap trading; and c) 200+ million metric tons of non-Chinese steel product…