The Shanghai Futures Exchange (SHFE) and the London Metal Exchange (LME) jointly announced that the LME Steel HRC Shanghai contract will commence trading on the London Metal Exchange on 27 October 2026. The contract will be cash settled, with the final settlement price based on the Shanghai Futures Exchange Hot-Rolled Coil (HRC) Futures RMB Settlement Price, converted into US dollars for settlement purposes.

Zhang Ming, Executive Vice President of SHFE, said: “As a globally recognised exchange, the LME has a broad international market presence. By licensing the settlement price of SHFE HRC futures to the LME for the launch of a futures contract settled against the SHFE benchmark, we aim to provide Chinese and overseas companies engaged in global HRC trade with a more direct and effective risk-management tool, while further strengthening the links between China’s steel industry, the Shanghai price and global markets.”

MiRan Park, LME Chief Business Officer, said: “I am thrilled to be able to confirm the launch date for our new contract. From next month, the LME will be providing the market with a straight-forward route to accessing what is widely regarded as the global benchmark for the flat steel sector, offering ease of access for offshore participants of the LME. With an average bid offer of one tick, hundreds of lots quoted on each side and an average daily volume of almost 700,000 lots per day, the SHFE HRC contract is one of the most successful commodity contracts in the world.”  

Since its launch in 2014, the SHFE HRC futures contract has grown into the world’s largest flat steel futures contract and has increasingly served as an important pricing reference for imports of Chinese flat steel products across the Asia-Pacific, the Middle East, North Africa, South America and other regions. On 17 June 2026, SHFE and the LME signed an agreement on the licensing of the SHFE HRC futures settlement price during the Lujiazui Forum.