First trade done on CME's north European HRC contract

The first trade was done on the CME Group's north European hot-rolled coil (HRC) contract today.

August traded at €435/t for 500t, in a deal brokered by GFI Group. The trade comes as market participants are trying to ascertain how prices will develop in the coming days.

Many mills are reducing output given the reduction in end-user demand, with automakers and others stopping because of the coronavirus.

The CME contract, which cash-settles against the monthly average of Argus' northwest European HRC index, launched on 9 March. Liquidity has been slow to build, with business continuity impacting set-up for some participants.

By Colin Richardson

source: Argus Media