Steel Futures begin trading on London Metal Exchange

I am suspicious of stock market mechanisms being introduced further into steel making. I’m not convinced that shareholders, with their quarterly-profits mentality, mix well with an industry where investments are made for a decade or more. However, I’m also unconvinced by the steel industries response … that consolidation is a better way forward.

International Herald Tribune

New steel futures contracts introduced Monday in London could fill an information gap for one of the world’s largest industries and shed light on global economic health, a leading British fund manager said.

“You’ve got this area from iron ore to a whole range of steel products that aren’t catered for on an exchange,” Frances Hudson, global thematic strategist at Standard Life, said. “These are very cyclical markets, and any additional good-quality information we can get about overall economic health is welcome.”

See also AFP via yahoo news

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