NYMEX To Introduce Steel Futures Contracts Based On World Steel Dynamics Steel Benchmarker Index

The New York Mercantile Exchange, Inc., the world's largest physical commodity exchange and a subsidiary of NYMEX Holdings, Inc. (NYSE:NMX), signed a licensing agreement with World Steel Dynamics, Inc. (WSD), a leading steel industry information service, and will introduce a steel futures contract based on WSD's SteelBenchmarker^TM benchmark pricing system on the NYMEX ClearPort® electronic clearing and trading platforms later this year.

NYMEX and WSD will work together to provide marketing and education for these financially settled contracts. The expected contract will be USA hot—rolled band steel futures. The contract size will be 20 short tons with a minimum price fluctuation of $0.50 per short ton and will be listed for 18 consecutive months.

SteelBenchmarker^TM is a an index developed by World Steel Dynamics. Twice each month, steel mills, traders, distributors and steel users in the United States, Western Europe, and those who buy or sell steel internationally, provide their confidential opinions to the SteelBenchmarker^TM system on the spot price for near–term delivery to the mid-sized buyer. Final settlement day will be the fourth Wednesday of the current contract month.

NYMEX Chairman Richard Schaeffer said, "We are very pleased to be the first exchange to offer a steel futures contract to serve the North American market. NYMEX has worked closely with the steel industry for several years to develop a contract which will meet the needs of producers and consumers and serve as a transparent benchmark for the industry."

World Steel Dynamics Managing Partner Peter Marcus said, "We see a great market for steel futures contracts in the steel industry. Price volatility has increased in the steel market, and futures contracts will enable end users and producers to lock in prices and margins. NYMEX and World Steel Dynamics have teamed up to provide a new price risk tool, based on the SteelBenchmarker^TM index. The SteelBenchmarker^TM was developed to provide unbiased spot market price opinions and incorporates numerous safeguards to prevent collusion, manipulation or other misuse. We are pleased to partner with the NYMEX, the global leader in physical commodities trading, to introduce steel futures contracts."