scrap futures market registered no trading activity for a third
consecutive month, with the recent inflation of prices unable
to draw potential players off the sidelines.
Trading volumes for
CME Group Inc.s U.S. Midwest No. 1 busheling ferrous
scrap futures contract remained at zero in October. The
contract is based on AMMs Midwest Ferrous Scrap
Index for No. 1 busheling, which settles on the 10th of each
month. The November index settled at $431.18 per ton, up 7.5
percent from $401.16 in October (amm.com, Nov.
With the large jump in
prices, some scrap market sources were surprised that no one
took a position to capitalize on the move.
"Volatility is needed
for (scrap futures) to gain traction, but you also need a
difference of opinion," one futures broker source said.
"Everyone either wants to buy or wants to sell, and there is no
difference of opinion."
are at $405 per ton with offers at $420, compared with $390 and
$400, respectively, in October.
The growing hot-rolled
futures market initially saw less interest than the scrap
market, with only a handful of trades per year during its first
couple of years, the broker said.
"This still provides
opportunity for people, and I am still signing up participants
and expect inquires to continue to enter the marketplace," he