NYMEX to Launch Domestic Hot Rolled Coil Steel Futures Contract
04 August 2008 - 10:00PM
PR Newswire (US)
NEW YORK, Aug. 4 /PRNewswire-FirstCall/ -- The New York Mercantile
Exchange, Inc., a subsidiary of NYMEX Holdings, Inc. (NYSE:NMX),
today announced that it plans to introduce a futures contract based
on prevailing market prices for hot-rolled steel coil in the U.S.
Midwest region (U.S. Midwest domestic hot-rolled coil steel) early
in the fourth quarter of 2008. The contract will be financially
settled against an index developed by CRU Indices Ltd., a
subsidiary of CRU International Ltd., a leading supplier of steel
industry information. The contract size will be 20 short tons with
a minimum price fluctuation of $0.50 per short ton and the contract
will be listed for 18 consecutive months. Final settlement on the
monthly contract will be the average price calculated for all
available price assessments published for that given month. The
steel futures contract will be available for trading on the CME
Globex(R) electronic trading platform, and off-exchange
transactions can be submitted for clearing via NYMEX ClearPort(R).
NYMEX Chairman Richard Schaeffer said, "NYMEX's expansion into the
steel market is a natural extension of our risk management business
and we are pleased to offer a steel futures contract to serve the
North American market. Managing price volatility has become a
necessity for everyone involved along the steel supply chain and
these contracts will assist the U.S. manufacturing industry in
dealing with this issue." "The NYMEX decision to license CRU's
price assessments is yet a further endorsement of their accuracy,
and of the robustness of our research procedures," said CRU Group
Chairman, Robert Perlman. "Wherever steel is traded, from physical
transactions to futures, we believe our price assessments give all
participants the truest picture of the market." The U.S. domestic
steel sheet market is comprised of approximately 12 major steel
mills that produce more than 50 million short tons of sheet
products annually, with net hot-rolled coil representing nearly 20
million tons of this market. Physical trade in steel sheet takes
place throughout the supply chain, and includes these mills, along
with service centers, distributors, merchants and end-users. The
CRU price assessments are based on actual spot transactions in the
market, and all the data providers available to CRU are directly
involved in buying and selling the relevant steel product on the
spot market. About the New York Mercantile Exchange, Inc. The New
York Mercantile Exchange, a subsidiary of NYMEX Holdings, Inc.
(NYSE:NMX), is the world's largest physical commodities exchange,
offering futures and options trading in energy and metals contracts
and clearing services for more than 400 off-exchange energy
contracts. Through a hybrid model of open outcry floor trading and
electronic trading on CME Globex(R) and NYMEX ClearPort(R), NYMEX
offers crude oil, petroleum products, natural gas, coal,
electricity, gold, silver, copper, aluminum, platinum group metals,
emissions, and soft commodities contracts for trading and clearing
virtually 24 hours each day. For more information, visit the NYMEX
website at http://www.nymex.com/. About CRU Group CRU is an
independent business analysis and consultancy group focused on
mining, metals, power, cables, fertilizer and chemicals. Founded in
the late 1960s and still privately owned, the group employs more
than 200 experts in London, Beijing, Santiago, Sydney and the
United States. CRU's Steel Business Group has over 30 full-time
consultants researching and analyzing the steel, nickel and alloys
industries. CRU's products for the steel industry analyze recent
trends in market fundamentals and present forecasts of production,
consumption, stocks and prices. Forward Looking and Cautionary
Statements This press release may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act, with respect to our future performance, operating
results, strategy, and other future events. Such statements
generally include words such as could, can, anticipate, believe,
expect, seek, pursue, and similar words and terms, in connection
with any discussion of future results. Forward-looking statements
involve a number of assumptions, risks, and uncertainties, any of
which may cause actual results to differ materially from the
anticipated, estimated, or projected results referenced in
forward-looking statements. In particular, the forward-looking
statements of NYMEX Holdings, Inc. and its subsidiaries are subject
to the following risks and uncertainties: the success and timing of
new futures contracts and products; changes in political, economic,
or industry conditions; the unfavorable resolution of material
legal proceedings; the impact and timing of technological changes
and the adequacy of intellectual property protection; the impact of
legislative and regulatory actions, including without limitation,
actions by the Commodity Futures Trading Commission; and terrorist
activities and international hostilities, which may affect the
general economy as well as oil and other commodity markets. We
assume no obligation to update or supplement our forward-looking
statements. DATASOURCE: NYMEX Holdings, Inc. CONTACT: Anu
Ahluwalia, +1-212-299-2439, or Brenda Guzman, +1-212-299-2436, both
of NYMEX Holdings, Inc.; or Paul Scott of CRU, +44 (0) 20 7903 2185
Web site: http://www.nymex.com/
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