The high level of uncertainty and price volatility in the US steel and ferrous scrap markets has motivated many companies in the steel supply chain to turn to futures and other hedging tools to manage their risk over the past 18 months.
As a result, CME Group has been seeing steady volume and open interest growth in both its hot rolled coil (HRC) and No. 1 busheling scrap futures contracts accompanied by a shift in participation demographics. This indicates that not only are the traditionally conservative steel and scrap supply chains becoming more comfortable with using these financial instruments, but financial players are also increasing their participation as the liquidity of these contracts grow.
Download Busheling contracts get boost from steel and scrapprice volatility today.