World’s First Steel Derivatives Еnter the DeFi Space Supported by Mettalex and Davis Index

May 5, 2021

Mettalex to launch the world’s first decentralized exchange contracts for recycled steel together with Davis Index.
Mettalex is writing DeFi history by launching the world’s first decentralized derivatives contracts for recycled steel in collaboration with the top metal market intelligence provider Davis Index. 

Starting May 31st, 2021 exchange-settled daily contracts for bulk exports of recycled steel, also known as ferrous scrap, shipped to Turkey and for containerized shredded scrap shipped to India, will be available for trading on Mettalex at:

dex.mettalex.com

Turkey is the world’s largest importer of ferrous scrap shipping in bulk vessels and sources most of its supply from Canada, Europe, Russia, UK, Ukraine, and the USA. The Indian subcontinent is the world’s largest importer of containerized ferrous scrap and sources its supply from almost every region of the world.

Traditional commodity markets participants are exposed to high financial risks, whereas hedging tools remain too expensive and often inaccessible to small and medium enterprises and retail investors. Mettalex was founded to offer a cost, capital, and risk-efficient alternative. The traded asset’s historical volatility is taken into consideration in determining its price band on Mettalex which effectively hedges risk exposure.

“The ability to hedge the numerous recyclables grades and specialty finished products that make for most of the infrastructure around us has long been a need in our industry.

The current system provides the industry with less than a handful of instruments and the basic risk and costs are just unworkable for most companies. Mettalex is finally answering the call for a decentralized exchange that can list any commodity.

We look forward to providing our price benchmarks on the Mettalex platform to give the manufacturing, demolition, and metal producing sectors the precise hedging instruments they need.”

Sean Davidson, CEO of Davis Index

“A critical byproduct of the Mettalex platform is the transparency it will bring to the pricing data around the world’s most valuable commodities. By making this type of market intelligence and the ability to trade more readily accessible, Mettalex aims to bring one of the oldest forms of trade in human history into the present century.

With Mettalex we aim to align the incentives of traders, stablecoin liquidity providers, and physical commodity holders to create a one-of-the-kind tool that is accessible to anyone on this planet, 24/7/365.”

Humayun Sheikh, CEO of Mettalex

More metal markets are expected to be launched as the integration between the decentralized Mettalex commodity derivatives exchange and Davis Index continues.