CME Group and Mysteel to Cooperate on Developing OTC Ferrous Risk Management Products for China
CME Group, the world’s leading and most diverse derivatives marketplace, and Mysteel, China’s leading provider of ferrous price and indexing services, announced January 19 they have signed an agreement to develop risk management products for the ferrous industry based on Mysteel’s market-leading price data services. The products will be listed by NYMEX and cleared by CME Clearing.
CME Group’s range of hedging tools for the iron and steel marketplace have broken new ground in producing a comprehensive suite of products covering multiple sources of volatility across the ferrous supply chain. This has become known as the ‘virtual steel mill’.
Mysteel is the leader in China’s steel e-commerce sector, boasting established strategic partnerships with more than 20 metallurgic bodies in China. The company has more than 600,000 registered members and information-collecting systems covering over sixty cities across China.
“With China providing the driving force in the global ferrous marketplace, this development will enable CME Group to further build out its comprehensive iron- and steel-related risk management product suite to meet significant customer demand,” said Harriet Hunnable, CME Group Managing Director, Metals. “This new opportunity with Mysteel will help us develop the tools needed for our customers to manage price risk associated with conducting business in the steel industry in China.”
Zhu Jun Hong, Chairman of Mysteel, said: “We are pleased to announce this partnership with CME Group, whose global markets provide a valuable platform for customers seeking risk management solutions in the iron and steel sectors. We look forward to working together with CME Group to the benefit of our customers and theirs.”