CME Group announced that the first Aluminium European Premium Duty-Unpaid futures contracts were traded on September 22, 2015 by Crunch Risk, LLC. A total of 10 futures contracts traded at a price of $72.50 per tonne. “We’re pleased to see early support for our new Aluminium European Premium futures, which are an outgrowth of our existing suite of aluminum risk management tools,” said Young-Jin Chang, CME Group senior director of Metals Products. “Based on the success of our Midwest premium futures, we worked closely with the aluminum industry to develop these contracts that enable our customers to hedge their exposure to European premium volatility.”
“This new contract from CME Group comes at a time when we’ve seen significant demand from our client base in mitigating their premium risk both in the U.S. and in Europe,” said Andre Marshall, president of Crunch Risk, LLC. “We applaud CME Group for being first to market with this new aluminum European premium contract and are pleased to help facilitate its launch by brokering the first trades. Moving forward, we’re optimistic about the potential for continued growth and liquidity in this contract as we continue to see volatile premium prices.”
The group first saw the first North American physically delivered aluminum futures contracts traded on May 6.