Fastmarkets AMM steel price selected as benchmark for new NFX futures contract
Fastmarkets AMM’s daily US Midwest hot-rolled coil (HRC) price index will from today be used as the benchmark to settle a new HRC steel derivatives contract to be launched on the Nasdaq Futures Exchange (NFX).
“This is the first futures contract in the US tied to a daily hot-rolled coil price,” said Grace Lavigne, Fastmarkets’ price development manager for North America. “We are delighted that our partnership with NFX offers the steel supply chain new opportunities to control their costs and offer fixed prices to customers.”
Fastmarkets AMM’s daily HRC index, the basis of settlement for the new NFX product, is based on real transactions in the market, ensuring impartial and representative market evaluations. This process, underlined by a vast HRC pricing history dating back to 1960, makes the index the most reflective in the market today.
“This hot-rolled coil futures contract expands our ferrous product suite, and is supported by strong interest from physical and financial participants in the US steel industry that desire a dynamic price risk management tool,” said Steve Sladoje, chief operating officer of NFX. “We are proud to partner with Fastmarkets, which has provided the industry with a responsive index that captures this increased price volatility with a daily reported index price.”
This new NFX contract continues to grow Fastmarkets’ ferrous futures contracts, including NFX’s US Midwest shredded steel scrap contract, the CME’s US Midwest busheling ferrous scrap contract and the Singapore Exchange’s high-grade iron ore 65% contract.
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