Straits Financial trades inaugural LME Steel HRC Shanghai futures contract

Straits Financial Services, a member of the Straits Financial Group, has announced its involvement in the inaugural trading day of the London Metal Exchange (LME) Steel HRC Shanghai futures contract on October 27, 2026. This move demonstrates the company's ongoing dedication to bolstering commodity derivatives markets and linking clients to exchange-traded tools for managing price risk.

The novel contract is settled in US dollars, based on the Shanghai Futures Exchange (SHFE) Hot-Rolled Coil (HRC) steel price, adjusted by Commodity Pricing and Analysis Limited (CPAL).

This is the first instance of an SHFE metals price being accessible for trading on another exchange. By introducing the SHFE HRC benchmark to the LME, the contract offers international market participants enhanced access to this price. Additionally, the contract enhances ties between China's steel market and the global trading community, catering to the risk-management requirements of producers, traders, investors, and financial institutions.

Roger Quek, CEO and Managing Director of SFSPL, expressed enthusiasm about participating in the first trading day of the LME Steel HRC Shanghai futures contract. The new contract expands the array of instruments for international participants aiming to manage steel price exposure, Quek stated. Straits Financial Services anticipates furthering the growth of this market and aiding its clients in accessing pertinent risk management solutions across global commodity markets. For additional information, visit the company's website at https://www.straitsfinancial.com.