By Maria Silander –
The London Metal Exchange yesterday confirmed that it plans to create steel price indices as a first step in establishing futures contracts for the metal. The futures may be introduced in a year’s time.
The LME, the world’s largest metals bourse, wants to start six indices, according to Simon Heale, chief executive, said at a press conference in London.
The exchange will start a tender next week for companies bidding to supply data to create the benchmarks.
The LME has not decided whether it will use its existing warehousing network to allow physical delivery of steel contracts.
Oil markets were steady yesterday after a volatile week, finding a support level around $60 a barrel. IPE Brent for December delivery was up 26 cents at $59.40 a barrel in London afternoon trade and December West Texas Intermediate was up 6 cents at $61.15 a barrel after news of China’s oil refinery production breaking the level of 6m barrels per day for the first time, signalling a pick-up in demand.
Gold and silver were weak on Friday, but gold still gained nearly $4 and silver climbed $6 over the week. Gold was down at $471.30/$472 a troy ounce from $473.50/$474.30 and silver was down at $7.69/$7.72 an ounce from $7.79/$7.82 in London afternoon trading from the late quote in New York.
“With the dollar having stabilised, we saw profit-taking and liquidation in the end of the week,” said John Reade, analyst at UBS.
Source: FT via Yahoo