SGX Iron Ore & Steel Futures
As the main raw material for steel, which is vital for construction, shipbuilding, and manufacturing in forms like rebar, plates, and hot-rolled coils, iron ore is primarily imported by China and largely produced by Australia and Brazil.
To facilitate effective hedging and trading opportunities amidst varying iron ore prices, SGX offers international iron ore derivatives like Swaps, Futures, and Options for different iron content levels (62% Fe, 58% Fe, 65% Fe Fines) and Lump Premium, alongside a suite of related steel value chain products such as Coking Coal, Rebar, and FFA for comprehensive price risk management.
Key Benefits
- Provides an effective hedging instrument designed to proactively manage and mitigate physical iron ore price risk.
- Offers the ease of taking and liquidating positions without the logistical complications or inherent risks associated with physical delivery.
- Enables better risk management through the daily mark-to-market valuation of all open positions, providing up-to-date financial insights.
- Facilitates trading with a growing pool of counterparties through a single clearing agreement, simplifying the process.
- Contributes to reduced counterparty credit risk due to the robust clearing framework in place.
- Ensures straight-through and real-time clearing of trades, coupled with instant confirmation for efficiency and transparency.
- The market opens daily for continuous trading, with exceptions only for common holidays observed in both Singapore and the UK.
- Empowers customers to combine swaps, futures, and options strategies to achieve highly specific hedging objectives and tailored risk profiles.
To find out more about SGX Iron Ore & Steel Futures, contact us via:
ENQUIRY FORM
