IISI to present its report on futures contract next week
In December 2002 International Iron and Steel Institutions (IISI) held a meeting to discuss the the issues about a
steel futures contract, as previously reported in SteelOrbis. In this respect, in order to make investigations and study the case a task force was formed by IISI including representatives of major steel companies such as Arcelor,
BHP Steel, Corus, Celsa, CST, Dofasco, Ispat International, Kawasaki and Nippon Steel. According to market sources, the task force is expected to present its report on the positive and negative aspects of a possible futures contract from the steel producers point of view next week first to group' members, thereafter to the IISI executive committee at a gathering to be held on April 6, 2003.
Industry analysts say that in case London Metal Exchange (LME), currently in talks with IISI, decides to work in collaboration to carry out steel trade via futures contracts it would take several months to conclude the feasibility studies such as specifying product storage and specifications for the
steel futures contract.
Despite no deadline is set for a desicion whether to establish
steel futures, regular meetings will be held in this respect.