After much delay that we have previously reported, Nymex has re-announced its intention to offer a steel futures contract for hot rolled coil for the Midwest during the early part of the fourth quarter, according to this Wall Street Journal article. Not to be outdone by Nymex, the London Metal Exchange also intends to offer a North American contract. According to the article, hot rolled coil represents 20 million short tons of 50 million tons produced annually.
Though the steel producers have opposed futures trading, it will provide some pricing stability for steel buyers. MetalMiner will be publishing several blog entries on this new offering and how manufacturers can take advantage of the new contract.