CME Group Announces Multiple Ferrous Metals Volume Records
11/11/2013 - CME Group announced it reached monthly volume records in its U.S. Midwest Domestic Hot-Rolled Coil Steel (CRU) Index futures and Iron Ore 62% Fe, CFR China (TSI) futures contracts in October 2013.
These contracts are listed by and subject to the rules of NYMEX.
During the month of October, U.S. Midwest Domestic Hot-Rolled Coil (HRC) Steel Index futures set a monthly volume record of 8,033 contracts, which surpassed the previous record of 6,872 contracts set in April 2013. Since the start of the year, combined futures and options on the U.S. Midwest Domestic Hot-Rolled Coil Steel Index have traded more than 55,714 contracts, which is equivalent to nearly 1.1 million short tons of steel.
Additionally, Iron Ore 62% Fe, CFR China (TSI) futures traded a record 3,404 contracts during the month of October, surpassing the previous record of 2,837 contracts set in July 2013. This is the equivalent of more than 1.7 million metric tons in the past month.
"Record trading in ferrous metals like HRC steel and iron ore futures played a role in the growth of our overall metals complex volumes during the month of October," said Harriet Hunnable, managing director, Metals Products, CME Group. "We're seeing greater participation by commercial participants, added liquidity on our CME Globex electronic trading platform and strong open interest in these markets as customers become more comfortable with our Virtual Steel Mill of risk management products."
Introduced in 2008, U.S. Midwest Domestic Hot-Rolled Coil (HRC) Steel Index futures were the first of CME Group's Virtual Steel Mill suite of ferrous metals products.
"Recent price volatility and greater disparity between domestic and foreign steel prices has resulted in more hedging of imports by commercial consumers of steel," said Jeremy Flack, founder and president of Flack Steel. "Liquidity is building in CME Group's steel and iron ore futures as more participants, especially service centers, step up to the plate and recognize there are hedging and arbitrage opportunities available. We're especially encouraged by the growth of steel options, which is another sign of a healthy and liquid futures market."
During the month of October, U.S. Midwest Domestic Hot-Rolled Coil (HRC) Steel Index futures set a monthly volume record of 8,033 contracts, which surpassed the previous record of 6,872 contracts set in April 2013. Since the start of the year, combined futures and options on the U.S. Midwest Domestic Hot-Rolled Coil Steel Index have traded more than 55,714 contracts, which is equivalent to nearly 1.1 million short tons of steel.
Additionally, Iron Ore 62% Fe, CFR China (TSI) futures traded a record 3,404 contracts during the month of October, surpassing the previous record of 2,837 contracts set in July 2013. This is the equivalent of more than 1.7 million metric tons in the past month.
"Record trading in ferrous metals like HRC steel and iron ore futures played a role in the growth of our overall metals complex volumes during the month of October," said Harriet Hunnable, managing director, Metals Products, CME Group. "We're seeing greater participation by commercial participants, added liquidity on our CME Globex electronic trading platform and strong open interest in these markets as customers become more comfortable with our Virtual Steel Mill of risk management products."
Introduced in 2008, U.S. Midwest Domestic Hot-Rolled Coil (HRC) Steel Index futures were the first of CME Group's Virtual Steel Mill suite of ferrous metals products.
"Recent price volatility and greater disparity between domestic and foreign steel prices has resulted in more hedging of imports by commercial consumers of steel," said Jeremy Flack, founder and president of Flack Steel. "Liquidity is building in CME Group's steel and iron ore futures as more participants, especially service centers, step up to the plate and recognize there are hedging and arbitrage opportunities available. We're especially encouraged by the growth of steel options, which is another sign of a healthy and liquid futures market."
