Source: Jeff Yoders/MetalMiner.
A major exchange picked a partner for its new steel product contracts and CEO expectations for US economic growth are weakening.
LME Picks Platts
The London Metal Exchange said recently that it will partner with McGraw Hill Financial Inc. to license the reference index prices for its new cash-settled ferrous scrap and rebar contracts.
The selected index prices are for scrap are TSI Turkish Imports, CFR Iskenderun Port; and for rebar: Platts Rebar, FOB Turkey Port. The new LME Steel Rebar and LME Steel Scrap contracts will debut November 23.
The cash-settled futures are designed to complement the LME’s existing ferrous contract – LME Steel Billet – and to meet the needs of the metal community for new risk management tools.
The LME said its new cash-settled contracts were developed in response to market demand and in close consultation with steel producers and consumers. The LME writes that the new contracts complete the production value chain for long steel – from inputs (LME Steel Scrap), through semi-finished stages (LME Steel Billet) to finished products (LME Steel Rebar).
CEO Expectations for Economic Growth Dwindle
US chief executive officers have become a bit more pessimistic in their outlook for the American economy in 2015 and fewer of them expect to increase sales, investment and hiring this year, a quarterly business group survey said on Monday.
The Business Roundtable’s second-quarter survey, conducted before US gross domestic product for the first quarter was revised down last month to show an annualized 0.7% contraction, found that CEOs expect 2.5% GDP growth this year.
That is down from the 2.8% growth expected in the last quarterly survey and 2.4% at the end of last year.