CUSTOMER LOGIN CRU About CRU News First trades of the CME’s new U.S. Midwest Domestic Steel Premium Futures contract settled on CRU NEWS First trades of the CME’s new U.S. Midwest Domestic Steel Premium Futures contract settled on CRU Chris Houlden Divisional Managing Director, Head of Analysis View profile Steel Share: The Chicago Mercantile Exchange’s (CME’s) new U.S. Midwest Domestic Steel Premium (CRU) Futures contract has commenced trading. This is settled on the premium of CRU’s US Midwest HDG coil base price over the US Midwest HR coil price. A trade of 100 short tons per month, at $150/ s.ton. was executed for H2 20 on Friday 12 June. Since 2018, the physical base price of HDG coil averaged $831 /s.ton while HR coil averaged $682 /s.ton. The difference between these two prices is the premium referenced by this futures contract, which has averaged $149 /s.ton with a high of $213 /s.ton and a low of $75 /s.ton in the same period. The new cash-settled contract is a hedging tool that allows market participants to trade and hedge the spread, or premium, between HDG base (excluding coating extras) and HRC prices. It enables new hedging strategies in their own right and in conjunction with the existing U.S. HRC futures contract, which settles on CRU’s established Midwest HRC price. In particular, the Premium futures contract can be important for intermediaries who procure HRC and sell HDG material where hedgers can lock in a margin between the two products. CRU’s US Midwest flat-rolled product prices are transaction-only weekly price benchmarks. Use of transaction data alone as data inputs to this price ensures they accurately reflects the actual spot market with no risk of information from sentiment, errant opinion, speculative or even confirmed but ultimately unexecuted bids and offers entering the published price. For more detail on applicable methodology and definitions, please click here. To learn more about CRU’s US Midwest and other North American prices click here. For more information on CRU’s price, analysis and forecasting services and how they can help your business, please visit our website or email steel@crugroup.com. For more information on CME Group, please email metals@cmegroup.com. Top MORE NEWS ANNOUNCEMENT 02.10.18 CRU appoints new Chief Economist ANNOUNCEMENT 27.03.19 CRU appoints David Trafford as new Chief Executive Officer, CRU Group NEWS 27.03.19 CRU turns golden: Celebrating 50 years in commodity research Find out more about CRU’s services CRU's unique services are the product of both our in-depth understanding of the markets and close contact with our customers. We want to hear from you. Get in touch Head office 1st Floor, MidCity Place 71 High Holborn London WC1V 6EA United Kingdom T: +44 20 7903 2000 LinkedIn Twitter YouTube Privacy policy Terms and conditions Modern day slavery statement Sitemap Cookie List © 2021 CRU International Limited All rights reserved CRU uses cookies on this website. By clicking “Accept All Cookies”, you agree to our use of cookies and by clicking “Reject All” only strictly necessary cookies will be placed on your device. For more information about the cookies we use and/or to modify your preferences click “Cookie Settings”. A full list of the cookies we use on our website can be viewed here. Accept All Cookies Reject All Cookies Settings