Tue Jul 19, 2011
* CME completes planned set of steel contracts
* HRC Midwest-US contract seen most successful so far
By Tasim Zahid, Reuters
LONDON, July 19 (Reuters) - The Chicago Mercantile Exchange (CME) will launch a coking coal swap futures contract on July 25 in an attempt to cash in on the incresed interest in steel derivatives, it said on Tuesday.
The contract is the latest in a series of steel-related contract launches in recent months by the CME. Coking coal is a key steel-making ingredient together with iron ore.
"At CME Group we have created a virtual steel mill as we have launched contracts that can be used to hedge a steel mill's input and output," said James Oliver, CME director of client development and sales, in a phone interview.
"This set of contracts is our way to help the steel industry to manage risk," he added.
The contract will be settled against Platts indexes and will list on the New York Mercantile Exchange (NYMEX) and clear through CME ClearPort.
The trading volumes for some of the previous steel contracts have not been as high as the CME expected.
"Clearly we were hoping for more turnover, but we appreciate that it takes time to build a marketplace and we are confident that there is going to be an evolution in terms of volumes," Oliver said. "Our most successful (ferrous) contract so far is the Mid-US HRC contract. That contract trades every day and we are growing our open interest."
The coking coal contract unit will be 1000 metric tonnes.
It will add to the CME's existing steel contracts such as the ferrous scrap cost-and-freight Turkey swap, U.S. Midwest hot-rolled steel and iron ore swaps and options. The CME also listed a steel billet, free-on-board Black Sea swap futures contract in April.
* CME completes planned set of steel contracts
* HRC Midwest-US contract seen most successful so far
By Tasim Zahid, Reuters
LONDON, July 19 (Reuters) - The Chicago Mercantile Exchange (CME) will launch a coking coal swap futures contract on July 25 in an attempt to cash in on the incresed interest in steel derivatives, it said on Tuesday.
The contract is the latest in a series of steel-related contract launches in recent months by the CME. Coking coal is a key steel-making ingredient together with iron ore.
"At CME Group we have created a virtual steel mill as we have launched contracts that can be used to hedge a steel mill's input and output," said James Oliver, CME director of client development and sales, in a phone interview.
"This set of contracts is our way to help the steel industry to manage risk," he added.
The contract will be settled against Platts indexes and will list on the New York Mercantile Exchange (NYMEX) and clear through CME ClearPort.
The trading volumes for some of the previous steel contracts have not been as high as the CME expected.
"Clearly we were hoping for more turnover, but we appreciate that it takes time to build a marketplace and we are confident that there is going to be an evolution in terms of volumes," Oliver said. "Our most successful (ferrous) contract so far is the Mid-US HRC contract. That contract trades every day and we are growing our open interest."
The coking coal contract unit will be 1000 metric tonnes.
It will add to the CME's existing steel contracts such as the ferrous scrap cost-and-freight Turkey swap, U.S. Midwest hot-rolled steel and iron ore swaps and options. The CME also listed a steel billet, free-on-board Black Sea swap futures contract in April.
Posts
No comments:
Post a Comment