Q4 2020 Metals Update

  • 6 Oct 2020
  • By CME Group
  • Topics: Metals

Precious Metals products set average daily volume records in Q3

  • COMEX Micro Gold (MGC) and Micro Silver (SIL) achieved record average daily volume (ADV) in Q3 of 140K and 21K contracts, respectively. This is the third consecutive quarter of record volume for both products. 
  • Overall volume in our Precious Metals futures was a record 668K contracts in Q3, led by a record 151K contracts of ADV in our flagship Silver (SI) contract.

Q3 ADV Records

Product

ADV

Previous Record

Precious Metals futures

668k

658k

Silver Futures (SI)

151k

120k

Total Metals – APAC Region

145k

127k

Micro Gold Futures (MGC)

140k

72k

Micro Silver Futures (MGC)

21k

3k

Aluminum Futures (ALI)

348

149

Source: CME Group.


COMEX Copper volume rises as volatility increases

  • The COMEX Copper futures price has risen more than 40% to over $3 per pound since the March low. 

Source: CME Group.

  • This price action has driven higher volumes (Q3 ADV 99K, up 3% YoY) and rising open interest (290K up 46% vs lows in May) in Copper. Our Copper futures and options market continues to be the most liquid electronic venue to trade copper.

  • After rising to nearly 40% implied volatility in March, Copper options are now close to the two-year mean of 20% implied volatility. Both call skew and implied volatility have reverted closer to the mean even as the price of copper has rallied 40%.

Gold options see increased international participation

  • Gold options continue to grow internationally with trading outside of US hours making up over 22% of total volumes.
  • Average daily volume outside of US trading hours has tripled since 2017, rising to a record 14K contracts 2020 YTD.

Source: CME Group.


Record open interest in Shanghai Gold futures

  • Open Interest (OI) in Shanghai Gold futures rose steadily during Q3 to a record XXXX on XXXX.
  • Average daily volume and on-screen liquidity have also increased throughout Q3.

Source: CME Group.

Metals research: Factors that drove Gold’s August milestone still at play

Read why gold is shining brightly as an investment tool and the reasons why gold has found strong buying interest in 2020.

Read the article


COMEX Global Aluminum futures – positive developments and gaining traction

Volume traded per day in Aluminum futures is 350 contracts (8,750 metric tons) in Q3, up 227% YoY.

Inventories continue to set new highs since globalizing the contract, with just under 49K metric tons in CME Group warehouses in September.  

Learn more about ALI


CME Group Steel contracts on pace for record volume in 2020

Momentum in the Steel complex continues with average daily volume up 32% year to date vs. full-year 2019 to 19,600 tons, with a notional value of over $200M. US Hot-Rolled Coil Steel futures are the primary driver of growth with average daily volume of over 17,000 tons. 

European Hot-Rolled Coil Steel futures have also been a notable contributor with immediate uptake since being launched in March 2020. 

Learn more

READ: Three reasons HDG premium futures are a gamer changer for steel risk management


OpenMarkets: The importance of copper in China's economy

Copper prices have rebounded strongly since hitting an 11-year low in March. After briefly trading below $2 per pound, the metal has recovered 50% of its value.

Read how demand from China has soared and how COVID-19 has affected supply from South America.

Read the article


WPIC: What’s ahead for platinum automotive demand

Despite the negative impact of COVID-19 on the auto sector, the industry’s demand for platinum might be stronger than automotive sales data alone suggests.

Read the article

Subscribe to Metals Update