Chicago, 7 November 2013
CME Group has 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. 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."
In a recent blog post, CME Group highlighted additional factors contributing to the growth of its ferrous metals products and published an infographic that demonstrates how its Virtual Steel Mill of risk management products aligns with the steel supply chain.
As the world's leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the world's leading central counterparty clearing providers, which offers clearing and settlement services across asset classes for exchange-traded contracts and over-the-counter derivatives transactions. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk.