Economy
CRU & CME Discuss Hot-Rolled Coil Price Volatility: Buckle Up
Written by Tim Triplett
April 12, 2019
US Midwest HRC price volatility has increased markedly in recent months as government policy and inelasticity of domestic supply have led to large variations in physical market price. Concurrently, volume and open interest on the CME’s HRC futures and options contracts, settled on CRU’s US Midwest HRC price (“The CRU”) has surged as physical market participants look to manage price risk.
This futures contract has enabled users of the CRU to effectively hedge with minimal basis risk, taking advantage of a contract that has grown consistently with increasing liquidity while settling their physical contracts on the index of choice in the market.
In partnership between CRU and CME, you are invited to attend an upcoming webinar, discussing both the HRC physical and paper markets. The webinar will be approximately 45 minutes and will include Q&A with the presenters. Questions may be submitted during the webinar and upon registration. On the agenda:
- Causes of US Midwest HR coil price volatility;
- Understanding future market fundamentals and prices;
- Managing price risk now.
Presenters will include Chris Houlden (CRU), Josh Spoores (CRU), and Sean Kessler (CME).
Tim Triplett
Read more from Tim TriplettLatest in Economy
Architecture firm billings remain down in January
Architecture firms continued to report a sharp reduction in billings in January, according to the latest Architecture Billings Index (ABI) released by the American Institute of Architects (AIA) and Deltek.
New York state manufacturing rebounds in February
Business activity in New York state’s manufacturing sector recovered nicely in February after a sharp decline the previous month, according to the latest Empire State Manufacturing Survey from the Federal Reserve Bank of New York. The general business conditions index rose 18 points to 5.7. This is a diffusion index, where a positive reading signifies […]
Dodge Momentum Index jumps to record high in January
The Dodge Momentum Index (DMI) rose to a record high in January, according to the latest data released by Dodge Construction Network.
CRU: China hits back with retaliatory tariffs on US
Targets include coal, liquified natural gas, crude oil, and other commodities
ISM: Manufacturing expands in January for first time in years
Following more than two years of contraction, US manufacturing activity rebounded in January according to the Institute for Supply Management.