CME Group launches new Aluminum A380 Alloy

CHICAGO (Scrap Register): The first A380 aluminum alloy futures traded July 19 at 86 cents/lb on the CME Group's contract, which is financially settled on the monthly average of the Platts US Midwest Aluminum A380 Alloy price assessment.

 A total of 10 lots per month traded at 86 cents for August through December 2016; each lot is 44,092 lb or 20 mt, for a total volume of 1,000 mt. The trades were the first since the CME Group launched the contract on June 6, citing industry demand for a hedging tool for managing aluminum alloy risk. The trades were block trades cleared through the CME Clearport platform.

"Working with the industry we believe we've introduced risk management tools that better reflect the way commercial customers price their physical contracts based on the Platts assessment of A380 alloy. This new contract provides our customers with an effective and transparent solution for hedging aluminum alloy price risk,” said Young-Jin Chang, CME Group Executive Director.

Aluminum A380 Alloy (S&P Global Platts) futures are 44,092 pounds (equivalent to 20 metric tons) in size and financially settled against the S&P Global Platts assessment of the MW US A380 Alloy.