Steel in all its form is one of the largest products traded worldwide in volume. The steel physical market experienced a dramatic shift in 2003 with the explosion of China's consumption. The increase in China's production meant the country became the largest exporter for many products, and changed the international steel supply/demand and physical flows. These major changes have been reflected in both prices that have reached historical highs in January 2008, and in volatility now comparable to that of actively traded commodities.
This is the first neutral and independent in-depth futures contract study of billet, rebar and hot rolled from a commodity trader's perspective. The study examines whether steel futures contracts could work, how these markets could develop over the next 5-10 years, who will be the main participants, and what the real costs/benefits are for you to start trading in steel futures?
The report is split in 6 key parts:
Steel physical flows,
Steel product initiatives,
The market outlook for steel futures contracts,
Potential participants in the steel futures market;
The tool-kit to setting up your own trading desk and
One-to-one consultancy services.
MBR's Steel Futures - A turning point for the industry? addresses the following key issues:
Does the steel physical market need futures and derivatives at all? Is the market ripe for it now?
Which steel financial has the most chances of success and why?
How does steel compare to other commodities such as aluminium, oil, plastics, coal, freight, and CO2 certificates?
Who could be the market participants to steel futures?
What are the requirements and costs for a company to set up a futures trading desk?
This report is required reading for all industry professionals that have an interest in the development of steel futures including:
- Steel producers both in the long and flat segments
- Steel end users e.g. automotive industry, white good and construction
- Distributors, re-rollers, service centers and stockists
- Physical trading companies either already active in physical steel or other commodities
- Banks and hedge funds
- Financial investors involved in long-term steel investments and interested to protect the value of their asset.
- Exchanges considering launching steel contracts
- Consultants involved in the steel market or other commodities
- Financial brokers contemplating joining the market
MBR's 180 page Steel Futures Outlook Report has taken six months to compile by established steel industry experts including Brian Levich (Head of Metal Bulletin Research) and Guillaume Perret (with over 12 years active experience in commodities trading and key participant in the launches of numerous commodity contracts such as coal and freight). This report is based on in-depth interviews with significant producers, end users, traders and financial institutions that could participate into a steel futures market.