London / Hong Kong – 27 October 2026: The LME Steel HRC Shanghai futures contract, launched by the London Metal Exchange (LME) in collaboration with the Shanghai Futures Exchange (SHFE), commenced trading on the LME today. This marks the first time that a metals price from SHFE has been made available for trading on another exchange, providing international market participants with a new route to access the globally significant SHFE hot-rolled coil (HRC) steel benchmark.
LME Steel HRC Shanghai is a US dollar-denominated, cash-settled futures contract. It is cash-settled against the SHFE HRC RMB price, converted into US dollars under a methodology administered by Commodity Pricing and Analysis Limited (CPAL). The contract enables international market participants to gain exposure to the SHFE HRC benchmark through the LME trading and clearing ecosystem and to use the contract for trading and risk-management purposes.
CITIC Securities International (CSI) has been approved as one of the first liquidity providers for the new contract. CITIC Securities (UK), CSI’s UK subsidiary and a Clearing Member of the LME, successfully completed trades on the first day of trading. CSI is therefore among the first Chinese securities firms to support the contract through both liquidity provision and trading and clearing services, helping international corporates and institutional investors access the contract and manage their steel-related price risk.
CSI has long been active in global commodities markets, providing corporate and institutional clients with integrated financial solutions across hedging, trading and clearing, and risk management. CITIC Securities (UK) is the first Chinese securities firm to have independently applied for and obtained LME clearing membership in the UK. Its participation in the liquidity provider programme and completion of first-day trades represent an important milestone in CSI’s international futures, derivatives and commodities strategy.
Looking ahead, CSI will continue to leverage the collaborative strengths of CITIC Securities’ onshore and offshore businesses, further enhance its trading, clearing and risk-management services for global clients, and strengthen the business network connecting Chinese corporates and institutional clients with global capital markets. Through these efforts, CSI aims to support the broader international use of Chinese commodity price benchmarks and contribute CITIC’s expertise to the development of global futures, derivatives and commodities markets.