Stemcor executed the first voice-brokered trade on the London Metal Exchange's ferrous scrap contract last week via INTL FCStone, the exchange said Tuesday.
The trade was for 1,000 mt (100 lots), which was the largest clip to date, according to the bourse.
"Real industry prefers to hedge through trades quoted over the phone by their brokers, so this first voice-brokered trade shows these contracts are being accepted as risk management tools for the steel industry," said Matthew Chamberlain, head of business development at the LME.
Phillip Price, head of market risk management and derivatives trading at Stemcor, said the LME's new rebar and scrap contracts have been the "most successful in the commodities space since iron ore swaps."
The contracts, cash-settled against assessments published by Platts and The Steel Index, can be traded out to 15 months.
Since inception in November 2015 35,990 mt have been traded on the scrap contract and 9,600 mt on rebar.
