Obviously I haven’t got where I am today without successfully speculating on the commodities market.
However, there seems to be a minor storm in a metal teacup over the idea of a steel futures contract with quite a few of the leading steelmakers sticking the boot in:
No less than five top executives of some of the world’s largest steelmakers indicated at a steel industry conference Tuesday they thought establishing such a contract was a poor idea.
“I don’t think we need futures markets for steel,” Lakshmi Mittal, chairman of the world’s largest steel producer Mittal Steel NV (MT), said during a speech at the conference.
The remark got a round of applause, and others executives speaking at the event agreed.
Dan DiMicco, the outspoken chief executive of Nucor Corp. (NUE), said he thought establishing a futures market for steel would be bad for the industry.
“The folks who are going to make money off this aren’t in steel,” DiMicco said, noting financial professionals would be the ones to benefit.
Steel Dynamics Inc. (STLD) Chief Executive Keith Busse said futures contracts “don’t add any value,” and Stelco Inc. (STE.A) Chief Executive Rodney Mott said he didn’t think the contracts were necessary.
Anybody with a finer grasp of this kind of thing care to share the potential pitfalls in layman’s terms in the comments?
I have recently been reading some of your blog posts and how found interest in your post and your blogging experience.
I have sent along a more formal email addressing my interest and asking for your participation in non-formal interview that I would like to conduct as part of my MBA dissertation research.
I hope that we can be in contact soon.
Regards
Rhona
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