The London Metal Exchange (LME) will launch its new Steel HRC Shanghai futures contract on October 27, 2026, providing international market participants with an additional route to access the Shanghai Futures Exchange (SHFE) HRC benchmark.
The contract will be cash-settled against the SHFE HRC RMB settlement price, converted into US dollars. Commodity Pricing and Analysis Limited (CPAL), an LME sister company, will conduct the currency conversion and other pricing calculations.
The new contract marks the first time that SHFE has made a metals price available for trading on another exchange. The LME said the contract is designed to provide offshore participants with easier access to the Shanghai HRC benchmark and a new risk-management tool for international HRC trade.
The LME will also introduce a dedicated incentive programme to support liquidity in the new contract on its LMEselect electronic trading platform, targeting the active months with the highest liquidity on SHFE. The programme involves liquidity providers from China, Europe, America and the Middle East.
The LME said the contract’s final settlement will use the daily settlement price of the following month’s SHFE HRC contract, converted into USD.
The launch could also increase international exposure to the SHFE HRC benchmark. By making the Shanghai price accessible through the LME, the new contract could encourage more overseas participation in HRC price risk management and strengthen the role of the SHFE price in global steel trade.
SHFE HRC futures recorded an average daily volume of around 690,000 lots in 2025.