CME Group expands base metals offering with New Aluminum Japan Premium (Platts) Futures

UNITED STATES November 19 2015 9:30 AM

NEW YORK (Scrap Register): CME Group has announced it will expand its base metals offering with the introduction of a new Aluminum Japan Premium (Platts) futures contract to begin trading on 7 December 2015. 

Pending relevant regulatory review periods, the new contract will be available for trading on CME Globex and for submission for clearing through CME ClearPort, and will be listed with and subject to the rules and regulations of COMEX.

“This new contract complements our offering of U.S. and European aluminum premium futures contracts, and enables market participants to hedge their exposure to the Asian aluminum premium,” said Young-Jin Chang, Senior Director of Metals Products, CME Group.

“Market participants in Asia have demanded a solution in hedging their premium exposure, and with the growing sophistication and participation of Asia in global aluminum pricing, we are pleased to offer this new Aluminum Japan Premium (Platts) futures contract to better address our customers' needs," Chang added.

This new Aluminum Japan Premium (Platts) futures contract will complement CME Group's existing suite of aluminum risk management tools, including its Aluminum MW U.S. Transaction Premium Platts futures, Aluminum European Premium Metal Bulletin futures and physically delivered Aluminum futures.

Industry participation in the Aluminum MW U.S Transaction Premium Platts futures contract has steadily increased, trading the equivalent of more than 940,250 metric tons since their launch in April 2012 and reaching a record open interest of 20,061 contracts on 30 October 2015. 

The Aluminum European Premium Metal Bulletin futures contract has seen outsized growth in trading volumes since its launch on 21 September. In just over two months since launch, it has traded 62,350 metric tons and reaching a record of 2,474 contracts open interest on 10 November 2015.

The Aluminum Japan Premium (Platts) futures contract will be 25 metric tons in size and will be cash-settled referencing the Platts CIF Japan Spot Premium for Aluminum which is published daily in real-time service Platts Metals Alert and in Platts Metals Daily.