April Ferrous Metals Update

  • 14 May 2018
  • By and CME Group
  • Topics: Metals

April Ferrous Metals Update

  • U.S. Midwest Domestic Hot-Rolled Coil Steel (CRU) futures (HRC) set a monthly volume record in April. Monthly volume was 12,074 lots (241,480 short tons), an increase of 921% YoY. The HRC contract’s record volume in April was up 16% from the previous record set in January 2018.
  • U.S. Midwest Busheling Ferrous Scrap (AMM) futures (BUS) monthly volume was 1,487 lots (29,740 gross tons), 2nd all-time highest monthly volume.
  • The U.S. administration applied 25% tariffs on steel imports on March 23. The EU, along with Canada, Mexico, Argentina, Australia, Brazil and South Korea were excluded from the levy.
  • HRC volumes continued to be robust as market participants looked to manage their price risk on exchange using futures.
  • On-screen market makers expanded quote hours to quote from 8:00-11:00 a.m. Central Time.
  • Anglo American Plc announced it suspended Minas-Rio iron ore operations on March 29 in Brazil following a leak in the pipeline which carries iron ore in slurry form from the mine to an export terminal [Source: AngloAmerican].

Ferrous Futures Month-on-Month Change in Forward Curve and Open Interest

US Ferrous Volume Growth

Trade the spread between BUS U.S. Midwest Busheling Ferrous Scrap (AMM) Futures and HRC U.S. Midwest Domestic Hot-Rolled Coil Steel (CRU) Index Futures

Monthly Ferrous Volumes

If you have any questions or would like more information regarding this weekly communication, please contact metals@cmegroup.com.

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