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    CRU: COP26 – Crunch Time for Commodity Markets?

    Written by Frank Eich


    By CRU Economist Frank Eich, from CRU’s Global Economic Outlook

    COP26, the first Conference of the Parties since the outbreak of the pandemic, is widely seen as an important follow-up to the 2015 Paris Agreement. In 2015 countries committed to carbon reduction targets in the form of nationally-defined contributions. Expectations are high that governments will agree to even more ambitious carbon reduction targets at COP26. But even in the absence of any political agreements – previous COPs have not always lived up to expectations – capital markets initiatives in combination with corporate commitments will put increasing pressure on the commodities industries to embrace the transition to a low carbon economy.

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    CRU: HR coil futures re-price 2027 forward curve

    CME Group’s hot-rolled coil futures have jumped higher as the loss of a reheating line at a large Southern mill have renewed domestic production issues. At market close on Oct. 12, the Q4'26 futures are now pricing in $1,295 per short ton (st) for HR coil, a month-over-month (m/m) increase of $63/st. For 2027, the forward curve is up $80 /st vs. September, at $1,207/st. For November 2026 through March 2027, prices are at an average just above $1,300/st.