LME steel scrap
Since the launch in November 2015, the liquidity growth of cash-settled LME steel scrap demonstrates how the global steel industry is embracing its first real opportunity to manage steel scrap price risk. Since the release of the contract has been more than 2.3 million tons of scrap transactions and for the industry to provide steel scrap for the first time to trade the global frontier curve, up to 15 months.
The global price of the scrap market
LME steel scrap is cash settled, which means that on the expiry date, the outstanding contracts are settled according to the Platts TSI HMS 1 & 2 (80:20) CFR Turkey Index. Turkey is the world's largest importer of steel scrap, imports in 2016 more than 17.7 million tons, equivalent to 20.5% of global waste trade, from around the world. As a result, this change in global price is reflected in other regions and scrap prices, making it an important reference for all regional steel companies.