The London Metal Exchange (LME) and the Shanghai Futures Exchange (SHFE) have signed an agreement to launch a new steel futures contract that will provide international market participants with exposure to China’s HRC market.
The new contract, named LME Steel HRC Shanghai, will be cash-settled against SHFE’s monthly HRC price in US dollars. Pricing calculations, including currency conversions, will be carried out by Commodity Pricing and Analysis Limited (CPAL), the Dubai-based pricing subsidiary established by the LME and HKEX Group in 2025.
According to the exchanges, the contract will enable companies outside China to access one of the world’s most liquid steel futures markets through an LME-listed instrument, while enhancing global participation in Chinese steel price formation.
Trading is expected to begin in October 2026, subject to regulatory approvals, with the LME to announce the official launch date at a later stage.
The agreement further strengthens cooperation between the two exchanges and is expected to increase the international influence of China’s steel futures market.
China is the world’s largest steel producer and consumer, accounting for more than half of global crude steel output, while SHFE’s steel futures contracts are among the most actively traded steel derivatives globally.