LME launches benchmark Shanghai steel contract as it expands global reach
The London Metal Exchange will begin trading a new hot-rolled-coil steel contract settled against the Shanghai Futures Exchange, marking its first cross-listing with the Chinese market.
After a turbulent period that saw the 2022 nickel crisis threaten its operations, the 149-year-old London Metal Exchange reported record volumes in 2025 and a 16% rise in average daily turnover through September 2026. As part of its market-reform programme, the LME is introducing a hot-rolled-coil steel contract that will be settled against the Shanghai Futures Exchange’s HRC price, the global flat-steel benchmark. This cross-listing is the first time the ShFE has shared its metal prices with another exchange, signalling a thaw in relations after previous disputes over mainland warehouses.
The development aligns with Hong Kong Exchanges and Clearing’s 14-year strategy, launched under former CEO Charles Li, to link Asian and European markets. Parallel initiatives include the creation of Commodity Pricing and Analysis Ltd to administer sustainable-metal premiums and collaborations with Hindalco and Metalshub on a new alumina price index, positioning the LME to potentially “futureize” emerging metal pricing structures.
Why it matters
The contract expands LME’s global footprint and could reshape how key metal prices are set worldwide.
In this story
