International derivatives marketplace CME Group today announced that it will launch an options contract on its North European Hot-Rolled Coil Steel (Argus) futures on May 2, pending regulatory review.
“Given price volatility and uncertainty across the global steel supply chain, we are seeing a growing demand for European HRC Steel options to help our clients more precisely manage their risk,” said Jin Chang, Managing Director and Global Head of Metals at CME Group. “Open interest in our European HRC Steel futures has surpassed 42,000 metric tons as participation continues to grow across our entire ferrous metals complex. We look forward to introducing options, which should complement our clients’ existing strategies and help them minimize risk.”
CME Group Steel futures products have been growing steadily since launch. 2021 was the fifth consecutive year of growth for U.S. HRC Steel futures, reaching open interest as high as over 40,000 contracts, equivalent to over 800,000 metric tons, and average daily trading volume hitting a record 1,100 contracts.
The global appeal of CME Group’s around-the-clock liquidity continues to attract new users, with total metals options volume during non-U.S. hours reaching 21% of total volume last year.
North European HRC Steel options will be cash settled and based on a monthly average price, and will be listed by and subject to the rules of COMEX.