Steel and Iron Ore
Established market access
We provide execution and clearing for cash-settled and physically delivered futures, options and swaps in the steel and iron ore markets, for both exchange and OTC traded contracts.
Iron ore producers, steel mills and traders benefit from our access as a category-one LME member, and from our membership of many other exchanges and clearing houses. We can help you lock in revenue, secure long-term prices to fix input costs, or protect physical positions against price falls.
- Execution and clearing services
- Direct electronic trading access
- OTC and exchange traded contracts
- Expert hedging risk-management assistance
Industrial Commodities Team
The team provides both voice and electronic futures and options execution and clearing for clients trading metals and other industrial commodities, including energy. They also provide services for softs and agriculturals, FX and other financial markets.
The team works for producers, consumers, fabricators and traders, financial institutions and hedge funds, as well as investors in the commodity futures and options markets. Skills and experience range from open-outcry trading floors, commodity brokerages and banks, to operations and support roles. Given the nature and complexity of the markets, particularly the London Metal Exchange (LME), the desk provides additional liquidity, also enhanced by direct access to our ring team.
With the extraordinary industrial and financial market growth in China and surrounding regions, we have expanded our footprint in Asia. Today we have arguably the largest team of Chinese-speaking LME specialists in London, supported by experts at our Hong Kong subsidiary, ensuring round-the-clock support and essential local knowledge. We now serve a wide range of clients with differing needs, from those looking to fix and protect against commodity price risks, to financial institutions looking to access a wide range of financial instruments.
The global macro picture is starting to present some downside risks in the near term as China's economy is set to slow further and supply-chain bottlenecks continue to cap growth. New orders and new export orders in China are contractionary, and we expect demand in Q4. Order backlogs and lead times for products will continue in Q4, limiting growth, and real consumption is weaker than it looks. Higher costs from shipping, raw materials and energy will take their toll on the consumer, and we expect end-user demand to suffer. The final piece of the jigsaw is the reduction in stimulus from central banks and how that will impact financial markets, bond yields, and the dollar has rallied while stocks corrected, but what will this trend continue?
Monthly commentary covering the FX markets, providing insights on recent developments on select currency pairs. This month we focus on China, highlighting the fundamentals for the macroeconomy, as well as any changes to the PBOC in the coming months. The recent cut in the risk reserve requirement suggests monetary loosening. We also outline the movement between the onshore and offshore currency for those looking to arbitrage or hedge their exposure. This analysis gives an indication of the average width of the spread what key levels to look out for.