"We are delighted that Borsa Istanbul has selected TSI’s benchmark scrap price to provide the settlement basis for its new futures contract, and we share its excitement about the potential it offers,” said Steven Randall, TSI managing director.

"The Turkish scrap import price is a leading global indicator for the steel industry. Scrap is a key steelmaking raw material and prices are notoriously volatile. This contract will be extremely useful to companies grappling with the challenge of managing price uncertainty throughout the steel supply chain."

As stated in its March announcement, Borsa Istanbul’s steel scrap futures contract will be cash-settled using the average in the expiring month of TSI’s daily benchmark price for deep-sea imports of scrap grade HMS #1&2 in an 80:20 mix into Turkey’s Iskenderun port on a cost and freight basis.

“Turkey is one of the biggest importers of this important raw material,” added Cetin Ali Donmez, Borsa Istanbul executive vice president of derivatives & bullion markets.

“We believe that the growing Turkish economy will benefit from the launch of Turkish scrap steel futures. This contract will help Turkish steel industry participants to hedge their exposure and thus increase their competitiveness on a global scale. We are open to accepting market makers from local and foreign firms.”