Busheling contract said gaining traction
Sep 19, 2012 | 04:42 PM
| Anne Riley
NEW YORK Recent physical scrap market volatility is unlikely to abate soon, making CME Group Inc.s nascent No. 1 busheling futures contract an attractive tool for market players looking to mitigate pricing risk, Kataman Metals LLC director of steel trading Brad Clark said.
"The run-up in 2008 and then the subsequent events created such an unevenness and inconsistency in demand across all asset classes, all commodity markets, and it doesnt look to me to be ebbing anytime in the near future," Clark told AMM. "Scrap is volatile by the nature of the business. This volatility is set to continue due to the uneven global growth on the demand side."
With global commodities marketsincluding the domestic ferrous scrap marketexpected to see continued fluctuations in pricing for the foreseeable future, the Chicago exchanges newest futures contract could be set to gain some rapid traction, he said. ....
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