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The CME Group has launched a new futures contract that settles against Fastmarkets’ benchmark assessment for the Chicago No1 busheling ferrous scrap price.
Trading of the contract started on Monday December 16, 2024, on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.Read more on the contract on the CME’s website.The move follows industry feedback that Fastmarkets’ benchmark assessment for Chicago No1 busheling aligns more effectively with the hedging requirements of the ferrous scrap sector.“We are launching Chicago Busheling Ferrous Scrap futures to provide additional hedging capabilities across the ferrous value chain. US steel production relies heavily on recycled scrap, and this latest product is complementary to our suite of ferrous products, allowing market participants to manage their price risk across both input and output materials more effectively,” Jin Hennig, managing director and global head of metals at CME Group, said.Said Przemek Koralewski, Fastmarkets’ global head of market development: “We’re excited to partner with CME Group on the latest addition to their ferrous futures products. As markets evolve, it’s important that the appropriate hedging tools are available to support the physical exposure of market participants. The Chicago No1 busheling ferrous scrap futures contract is a perfect example of how Fastmarkets and CME Group respond to the needs of the market.”As part of the launch, the CME will also sunset its US Midwest No1 Busheling Ferrous Scrap (AMM) futures contract, which is tied to Fastmarkets’ steel scrap No1 busheling, index, delivered Midwest mill. This contract will permanently delist from the CME following the expiry of the December 2025 contract month.Fastmarkets and CME have published a Frequently Asked Questions document to provide additional clarity on the changes, addressing key questions for market participants.