CME Group, headquartered in Chicago, will be launching its Chinese Steel Rebar HRB400 (Mysteel) Swap Futures starting on Oct. 15, subject to regulatory review. This product will be listed with and subject to the rules and regulations of NYMEX (New York Merchantile Exchange). CME says the futures contract will be the first product listed by a CME Group exchange based on Mysteel's price data services.
“Working closely with Mysteel, our new rebar contract allows customers who have exposure to the Chinese construction and rebar industries to manage their price risk by using the most relevant price data,” says Harriet Hunnable, CME Group managing director of metals products. “There is demand from industry participants to provide them with tools to help reduce the impact of price volatility throughout the steel supply chain. This product is designed to enable our regional customers to manage rebar price volatility and eliminate counterparty credit risk through a flexible, centrally cleared swap futures product.”
In January, CME Group and Mysteel, a China-based provider of ferrous price and indexing services, announced an agreement to develop risk management products for the ferrous industry.
“Through our partnership with CME Group and the distribution on its CME Globex electronic trading platform, we are able to quickly reach global market participants,” says Zhu Jun Hong, chairman of Mysteel. “We will continue to work together to identify new products and services that will meet the needs of Chinese ferrous industry participants and help them to manage their risk.”
Rebar HRB400 is used primarily by the construction industry to reinforce concrete and is defined as a ribbed bar of steel of 20-millimeter diameter under the Production Statistical Indicator System of China’s Steel Industry. CME Group’s swap futures will be equal to 100 metric tons, they will be denominated in U.S. dollars and will be offered for trading on the NYMEX trading floor and for clearing through CME ClearPort.
More information is available at www.cmegroup.com/ferrous.
Latest from Recycling Today
- Nucor names new president
- DOE rare earths funding is open to recyclers
- Design for Recycling Resolution introduced
- PetStar PET recycling plant expands
- Iron Bull addresses scrap handling needs with custom hoppers
- REgroup, CP Group to build advanced MRF in Nova Scotia
- Oregon county expands options for hard-to-recycling items
- Flexible plastic packaging initiative launches in Canada
