http://www.efinancialnews.com/story/2012-05-28/steel-trading-comes-out-from-behind-iron-curtain
How will this develop within an individual steel making company? Will it evolve at all or is it (considered) too risky and if it will develop, will it be procurement driven or sales driven? Any insights? To steel companies this is a huge thing because we are talking many millions of tonnes of steel being produced globally.
What can we expect from iron ore and coking coal derivatives markets?
For example the biggest producer ArcelorMittal produced 97.2 million tonnes of steel in 2011.
Replies
Any views on how this will likely develop?
http://www.maritimesun.com/news/feature-steel-and-freight-and-coal-...
Taking steel as a single commodity market, it is second only to oil in size and therefore represents a huge opportunity for increased risk management. It is possible to foresee a situation in the not too distant future where steel industry participants trade a ‘blast spread’ across raw materials and finished products in the same way that other commodity producers and consumers trade the 'crack spread’ in the oil market or the ‘crush spread’ in agricultural products.
Also wanted to add these links: http://arabnews.com/steel-sector-needs-better-price-tool-kit
http://www.risk.net/asia-risk/feature/2170208/iron-ore-forges-ahead...
http://www.commodities-now.com/news/metals-and-mining/9019-china-ey...
http://unctad.org/en/Pages/PressRelease.aspx?OriginalVersionID=91&a...;