Singapore Exchange to launch HRC futures, swaps on February 17

The Singapore Exchange (SGX) will launch its planned hot rolled coil cfr Asean index futures and swap contracts on February 17 to tap into rising demand for the flat steel product in Southeast Asia.

Paragraph entered by Atlantic migration, in order for SteelFirst articles to display correctly on Metal Bulletin.

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.

What to read next
Following a six-week consultation period, Fastmarkets can confirm it will amend the calculation method for all the average functions on the Fastmarkets platform from Wednesday March 1, 2023.
Consolidation, the recycling of electric vehicle batteries, US steel exports and the benefits of sustainable steelmaking were key talking points at Fastmarkets’ Scrap & Steel 2023 conference in Dallas in January
Green shoots of increased demand will emerge in US ferrous markets courtesy of the Biden administration’s trillion-dollar infrastructure package in 2023, Schnitzer’s executive vice president and chief strategy officer Richard Peach said at Fastmarkets’ Steel and Scrap Conference 2023 in Dallas, Texas
US special bar quality steel prices rose in January in line with rising scrap and alloy costs, according to market participants
European metal industry association Eurometaux has called on the European Commission to follow the lead shown by the Inflation Reduction Act and deliver a “powerful” policy to support the industry in the EU while it tries to keep up with the move to a new generation of energy markets
The fallout from Russia’s invasion of Ukraine is changing global trade flows for bauxite, with Brazilian material once again flowing into China and with the introduction of export restrictions elsewhere likely to influence availability through 2023
We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.