HDG Coil Steel Futures Will Help with Price Risk

By CRU Principal Analyst Josh Spoores and CME Group Commodities Research Analyst Gregor Spilker

The CME Group recently launched a new steel futures contract which follows the U.S. hot-dipped galvanized (HDG) coil market. The U.S. Midwest Domestic Steel Premium (CRU) Futures is financially settled against the difference between U.S. Midwest hot-dipped galvanized coil (base) steel (HDG base) and hot-rolled coil steel (HRC). By offering this Premium futures contract, CME Group is expanding its product offering in the U.S. ferrous space, which includes the established U.S. Midwest Domestic Hot-Rolled Coil Steel (CRU) Index Futures contract.

Josh Spoores

Josh Spoores joined CRU in 2012 as Principal Analyst and editor of CRU’s Steel Sheet Monitor and Steel Sheet Market Outlook. During that time, Mr. Spoores forecast prices, demand, production and trade of sheet and plate products for both Canada and the US for CRU's Steel Sheet & Plate Market Outlooks. Today, he heads up steel analysis and forecasting for the Americas region. Prior to joining CRU, he was a Senior Marketing Analyst at Severstal North America, founder of Steel Reality, a forward-looking market analysis firm using a models-based approach for flat rolled and plate steel. He was also the Market Research Manager at Majestic Steel USA, one of the largest flat rolled service centres in the USA. He has a BSc in Business Administration from Bowling Green State University.