<article><p class="lead">The Chicago Mercantile Exchange's (CME) north European hot-rolled coil (HRC) contract has had a record week.</p><p>More than 62,000t has traded on 9-13 January, taking month-to-date volumes to 85,780t, according to <i>Argus</i>' calculations. In January 2022, 21,840t traded, meaning volumes have risen by 292pc year on year, with almost half this month still remaining. </p><p>This month is already the sixth-highest for volume since the contract launched in March 2020 — the highest five months all fell between August and December 2022, as trading accelerated.</p><p>Hedge funds and others are looking at getting involved in the European HRC contract, given the increase in volumes. Open interest has also rebounded this week, from 6,307 lots on 6 January to 7,023 on 12 January, according to CME data. </p><p>Physical price rises this month have led to increased trading, with some taking long physical positions and hedging them out by selling futures. <i>Argus</i>' underlying northwest EU HRC index has risen from €708.25/t at the start of the week to €720.25/t today — the price has risen from €602.25/t at the end of November. </p><p class="bylines">By Colin Richardson</p></article>
