Iron Ore futures and swaps are traded on exchange or 'over-the-counter' (OTC).
The contracts are cash settled, without any physical delivery. They are cleared on either the Chicago Mercantile Exchange (CME) or the Singapore Exchange (SGX).
Who uses Iron Ore Swaps?
Iron Ore Producers
- Secure long term fixed sales price to lock in revenue
- Hedge against iron ore price drops
- Secure long term fixed prices to lock in input cost
- Manage exposure to volatile spot iron ore prices whilst retaining supply certainty with preferred producers
- Hedge future physical sales and purchases
- Protect a physical stock position against a fall in prices
Iron ore futures and swaps contract specifications links:
Steel is also available to trade:
LME: Steel Rebar, Steel Scrap and Steel Billet.
CME: HRC (Hot Rolled Coil) and US Scrap and Black Sea Billet (traded on NYMEX).
LCH: European HRC (Hot Rolled Coil) and Turkish Scrap.
SGX: Asian Hot-Rolled Coil (HRC).
Tel: +44 (0) 20 3207 5430