HRC Steel Futures

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Commodity Online  May 3  Comment 
Two records were set for open interest in the metals complex Tuesday, said CME Group.




 


Background

Steel futures are essentially a price risk management tool. World steel prices - just as prices for other commodities such as copper or crude oil - are known to be very volatile; and the steel price cycle is well documented[1].

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The chart illustrates this price volatility for hot rolled steel coil - a common and widely traded steel product used to produce cold-rolled and coated steel coil and sheet for automotive body and similar applications and white goods; as well as for the production of welded steel tube. The price fluctuations during the last six years in the hot rolled coil (HRC) price have taken world export f.o.b. prices from between $400 to $1000 per metric tonne.

HRC Steel futures are traded on the New York Mercantile Exchange under ticker symbol HR in U.S. dollars and cents per short ton.[2]

Chart

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HRC Steel futures prices for a July, 2009 delivery date. Prices are in U.S. dollars and cents per short ton.

Delivery Dates

HRC Steel futures are delivered every year in January, February, March, April, May, June, July, August, September, October, November and December (all months).[2]

The following is a table with HRC Steel futures delivery dates and resultant tickers for 2009. For an explanation on commodity tickers see commodity ticker construction.

Delivery Month Full Ticker Symbol Thomson-Reuters Symbol
January, 2009HRF9HR/F9-NM
February, 2009HRG9HR/G9-NM
March, 2009HRH9HR/H9-NM
April, 2009HRJ9HR/J9-NM
May, 2009HRK9HR/K9-NM
June, 2009HRM9HR/M9-NM
July, 2009HRN9HR/N9-NM
August, 2009HRQ9HR/Q9-NM
September, 2009HRU9HR/U9-NM
October, 2009HRV9HR/V9-NM
November, 2009HRX9HR/X9-NM
December, 2009HRZ9HR/Z9-NM

Contract Specifications

Contract Size

One HRC Steel futures contract on the New York Mercantile Exchange is 20 short tons.[2]

Tick Value

$5.00 per ton[2]

Daily Price Limit

None.[2]

Trading Hours

  • On the CME Globex electronic platform: 6:00 PM Sundays through 5:15 PM Fridays, with a 45-minute break each day between 5:15 PM and 6:00 PM, New York Time.[2]

Last Trading Day

Trading terminates at the close of business on the last business day prior to the fourth Wednesday of the contract month.[2]

Deliverable Grades

Hot Rolled Coil in the US MidWest, 20 ton lots of 0.2 inch thick, 48-60 inch wide material..[2]

References

  1. Steel Price Cycle - Frequency and Magnitude of Price Swings
  2. 2.0 2.1 2.2 2.3 2.4 2.5 2.6 2.7 The New York Mercantile Exchange's contract specification for HRC Steel futures

- - Samuel Samuel

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