Investing.com — The London Metal Exchange and Shanghai Futures Exchange announced Wednesday they have signed an agreement to launch an LME contract based on the Chinese exchange’s steel product.

Trading of the contract, which will be based on SHFE hot-rolled coil futures, is scheduled to begin in October, the LME said.

The LME described itself as the world’s oldest and largest market for industrial metals. China views the partnership as a way to expand its influence over global commodity prices, while the LME aims to increase trading volumes and attract new customers.

The Chinese government has pushed domestic exchanges to expand their global reach as part of efforts to give Chinese market participants greater control over international commodity prices.

The new contract originated from an announcement in October 2023, when the LME said it would work with SHFE on product development.

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