London Metal Exchange launches Steel HRC Shanghai futures

The London Metal Exchange (LME) has commenced trading for its new Steel HRC Shanghai futures contract. Straits Financial Services Pte Ltd (SFSPL) participated in the inaugural trading session on 27 October 2026.

The contract is cash-settled in US dollars based on the Shanghai Futures Exchange (SHFE) Hot-Rolled Coil (HRC) steel price, as converted by Commodity Pricing and Analysis Limited (CPAL). This marks the first instance where an SHFE metals price has been made available for trading on an external exchange.

By integrating the SHFE HRC benchmark into the LME, the contract aims to provide international market participants with direct access to Chinese steel pricing. The move is intended to strengthen connections between China’s steel market and the global trading community, offering risk-management tools for producers, investors, and financial institutions.