Average daily volumes of aluminium futures surged 359% in Q3: CME Group Inc.
CME Group Inc., a futures exchange operator, said on 16th September 2022 that aluminium futures volumes soared 359% in Q3 to date from Q1 and topped 6,709 contracts in the fourth quarter.
A futures contract for aluminium is a standardized, exchange-traded contract in which the contract buyer agrees to take delivery of aluminium at a predetermined price from the seller on a future delivery date.
CME Group Inc. is an American global markets company. It is the world's largest financial derivatives exchange and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.
The CME stated, "The top 25 aluminium futures volume days have all occurred since April, with nearly 150 new accounts trading since May."
The LME aluminium price attained a record high of $4,073.50 a tonne in early March due to supply insufficiency caused by Ukraine-Russia geopolitical crisis. However, prices have fallen by more than 40% since then.
Young-Jin Chang, The Global head of Metals at CME Group, said, "We have seen an increase in demand from aluminium participants to enhance liquidity and create a more robust alternative market."
Chang added, "The daily volume of CME's aluminium futures averaged about 3,700 contracts in September, with open interest around 1,000 contracts."
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