What is the key feature of the new LME steel futures contract, and how does it link to Shanghai prices?

The London Metal Exchange (LME) will launch a hot rolled coil (HRC) futures contract in October that settles against the Shanghai Futures Exchange’s (SHFE) monthly US dollar-denominated HRC price — making it the first LME contract directly tied to a SHFE benchmark. This linkage gives global investors exposure to Shanghai-set prices through a familiar, cash-settled LME platform.

Why is this LME–SHFE collaboration significant for China’s broader financial strategy?

The collaboration is described as 'a concrete step in implementing China’s capital market opening-up strategy' by SHFE Chairman Tian Xiangyang, reflecting China’s effort to increase foreign access to its commodity markets — not only to exert more direct influence on global pricing (traditionally set in London, New York, and Singapore), but also to support the internationalization of the yuan as a global currency, as seen earlier with SHFE’s April move to allow qualified foreign investors to trade nickel futures.

LME to Launch Steel Futures Giving Access to Shanghai Prices

Jun 17, 2026

The London Metal Exchange will launch a hot rolled coil steel futures contract in October, settling against Shanghai Futures Exchange prices to facilitate global investor access. This move aims to internationalize China's capital markets and broaden pricing influence beyond traditional financial centers.

bloomberg

2026-05-06

LME Plans to Expand Hong Kong Warehouse Capacity to Hundreds of Thousands of Tons

2026-06-17

LME to Launch Steel Futures Giving Access to Shanghai Prices

2026-06-26

Chinese brokerages push for LME membership to expand global metals role

2026-09-08

Metals Fall From Record High in London as Middle East Tensions Flare

LME to Launch Steel Futures Giving Access to Shanghai Prices

FAQ