Freeport Indonesia to process 400,000t of copper concentrate at new smelter
Earlier this month, Freeport obtained an export permit for the rest of the year from the government.
Futures exchange operator CME Group said on Thursday that open interest in its copper options reached a record high of 137,574 contracts on Jan. 18.
Options contracts give buyers the choice to carry out a future transaction on an underlying security based on a previously agreed upon price, allowing investors to make bets without always paying for the whole security.
Open interest tallies the number of options contracts that are yet to be settled between buyers and sellers, a measure of investors’ participation in a market.
“As market participants navigate ongoing recession risk and China’s easing of covid-19 restrictions, they are increasingly using our Copper Options products to manage potential price moves,” said Jin Chang, global head of metals at the Chicago Mercantile Exchange Group in a statement.
Copper Options average daily volume (ADV) was at 12,513 contracts month-to-date, up 410% versus a year ago, while ADV in the Copper Futures and Options complex was at 131,466 contracts month-to-date, up 42% from full-year 2022 ADV.
Additionally, Global Aluminium Futures saw ADV month-to-date currently at 3,096 contracts, up 85% from full-year 2022 ADV.
The Group in October reported a third-quarter profit that beat expectations as volatility in the global markets amid high inflation, aggressive rate hikes and recession fears, drove trading volumes higher.
(By Seher Dareen and Bharat Govind Gautam; Editing by Bill Berkrot)
Comments
Mark Brant
Thanks!