Steel Futures - A turning point for the industry?

The long established steel industry is on the verge of a momentous change. 2008 sees the launch of several initiatives of financial trading tools that if successful will revolutionise the global steel industry forever.

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 subsequent major increase in China's production as the country became the largest exporter for many products, achieved to modify profoundly 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 already actively traded commodities.

Why is this new AMMR study so topical?

AMMR's 180 page Steel Futures Outlook Report has taken six months to compile by established steel industry experts including Brian Levich (Head of American Metals Market 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.

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This is the first fully neutral and independent in-depth futures contract study of the three main steel products 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?

Required reading for industry professionals that have an interest in the development of steel futures:

• 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

For more information, contact Lisa Lin on:

Lisa Lin
Tel: +1 (212) 224 3577
Toll Free: 1 877 638 2856 (Within the US and Canada only)
or email:research@amm.com

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