UNITED STATES October 27 2016 6:25 AM
CHICAGO (Scrap Register): CME Group has announced that the first Alumina FOB Australia (Platts) Futures contracts were traded on Tuesday, Oct. 25, 2016. A total of 60 futures contracts, equivalent to 6,000 metric tons, were traded across the January through June 2017 contract months.
"We're pleased to see early support for our new Alumina futures contracts," said Young-Jin Chang, CME Group Global Head of Metals Products. "Together with our existing suite of aluminum products, these new contracts enable customers to effectively manage price risk both up and down the aluminum value chain. We look forward to continuing to work with the industry to meet the evolving needs of our customers."
"We're enthusiastic about brokering the first trades of these new Alumina futures contracts," said André Marshall, Founder, Crunch Risk, LLC. "The introduction of these contracts by CME Group is timely and relevant given the volatile alumina price environment in recent months. We believe these contracts have the potential to grow as participants become more familiar with using them to manage price risk in their business."
Alumina FOB Australia (Platts) futures are 100 metric tons (equivalent to 220,462 pounds) in size and financially settled each month against the weekly price index published for Alumina FOB Australia by S&P Global Platts. CME Group's Alumina futures contracts became available for trading on September 26, 2016, and are listed with and subject to COMEX rules.