DUBAI, 19 October 2007 — In advance of its upcoming Steel Rebar Futures Contract, DGCX — the region’s first international commodities derivatives exchange — yesterday announced the new batch of approved producers for the contract.
DGCX Steel Rebar Futures, the world’s first internationally accessible exchange-traded instrument, is set to be launched on Oct. 29.
The new wave of approvals includes leading Turkish producers — Izmir Demir Celik Sanayi AS, Ekinciler Iron & Steelworks Inc. and Diler Iron and Steel Co Inc.
The listing of new approved producers considerably expands the palette of rebar products that will be traded. The approvals aim to provide buyers and sellers a clear indication of the specifications and brands of steel rebar that will be priced, traded and delivered.
Explaining the initiative, Ahmed Bin Sulayem, director, DGCX, said “as the Middle East’s first commodity derivatives exchange, DGCX is committed to the development of futures trade. Since its inception, the exchange has brought some of the most innovative products to the region, enhancing value for investors and adding depth to the overall derivatives market. The Steel Rebar Futures Contract will be another first for DGCX. The listing of approved producers for steel is aimed at maximizing transparency and standardization of product quality.”
Izmir Demir Celik Sanayi AS, Ekinciler Iron & Steelworks Inc. and Diler Iron and Steel Co Inc. joined the initial list of producers announced earlier this month by DGCX. It included Al-Tuwairqi Group (Al-Ittefaq Steel Products) and Sabic Steel (Hadeed) of Saudi Arabia and Qatar Steel Company of Qatar.
Dubai rebar price is a benchmark price for regional rebar and for other price correlated steels, i.e, other steel products quoted either at a premium or at a discount to the Dubai rebar price. Dubai rebar price is one of the key prices to the global steel community, enabling hedging opportunities in prices correlated steels, not just in Dubai, but the wider GCC, Asian and Mediterranean markets.
Steel prices have remained highly volatile, often in excess of 20 percent, driven by sharp fluctuations in demand-supply balance and operating costs.
