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The prospects for SGX HRC Steel Index futures and swaps are promising with emerging economies in Asia (mainly China, India, and Asean) accounting for 70% of global steel production and consumption, SGX said in a statement late on Friday January 17.

Apparent steel consumption in the Assn of South East Asian Nations region has been growing at a compound annual growth rate of 9% per annum since 2009, to reach 60 million tonnes in 2012, the bourse said, citing information from World Steel Assn. A significant portion of this demand is imported mainly from countries in North Asia, it added.

The HRC futures and swaps will each have a lot size of 20 tonnes and will be cash-settled using a reference price by data provider Steel Index.