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LME chooses Argus index as settlement for China HRC
London-based metals exchange the LME has chosen Argus as the basis for its cash-settled fob China hot-rolled coil (HRC) futures contract, due to launch on 11 March. China is the world's largest producer, consumer and exporter of steel. It has the most volatile, transparent and liquid traded spot finished steel market and exerts a strong influence over global pricing. There is a 90pc-plus correlation between fob China HRC and share prices of the world's largest steelmakers, as well as with other key benchmarks in the ferrous supply chain. In 2017, China accounted for 831.72mn t of global steel production of 1.69bn t. ... (full story)