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.
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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.