Futures
Iron Ore, Scrap Futures - Ore Quiet Due to Holiday – Scrap Climbs
Written by Bradley Clark
October 3, 2013
TSI Iron Ore: Market Quiet During Chinese Golden Week…
Iron ore prices have remained steady over the past week as the Chinese have been off for their Golden Week holiday. Demand while steady appears to be seen as fragile by many. The market remains in backwardation with prices down the curve continuing to trade at a discount to current spot pricing. The current spot price is around $131/ton with the q4 trading at $126, q1 ’14 at 122 and cal 14 at $110. Market participants await the return of their Chinese counterparts to give renewed impetus and direction to the market. Volumes have been down this week understandably but remain very robust.
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Prices Climb
The busheling market has shown unexpected strength this week after early signs the market would soften in October. Initially sentiment suggested the market would settle around $10 down this month, but recent mill price hikes and steady mill buying has caused the market to do a complete 180 with most deals being concluded sideways at worst from last month’s pricing. The physical market strength has filtered into the futures market with bids returning to the market looking for offers around $390-400 for q4 periods. No trades have been reported but there has been a definite resumption of interest particularly from buyers this week as the physical market begins to price.
Expectations are for the index to be relatively unchanged from last month’s print of $400.07 when it comes out next Thursday the 10th.
Again, there have been no reported trades this past week.
Bradley Clark
Read more from Bradley ClarkLatest in Futures
Nearby HR futures pull back as 2024 nears end
After experiencing a rally ahead of the 2024 election, the nearby part of CME HRC futures complex has softened as we approach year-end. Meanwhile, the forward positions (second half of 2025) have remained supported and largely unchanged.
HRC Futures: Here comes Trump bump 2.0?
No more excuses! The election is over. Donald Trump will be inaugurated on Monday January 20 with the Republican party in control of Congress. Now, it is time to get back to work!
HR Futures: Which way following election?
Since June, The US hot-rolled coil (HRC) futures market has been in a rare period of prolonged price stability, closely mirroring the subdued volatility seen in the physical market. Over the past five months, futures have been rangebound, with prices oscillating between a floor near $680 and a ceiling around $800. This tight range, highlighted in the chart, underscores a cautious market environment. The chart below shows the rolling 3rd month CME HRC Future.
HR futures: Support fails as market slows ahead of election
After a relatively stable and boring September, CME hot-rolled coil (HRC) futures have been on the move lower thus far in October. Since Sept. 30, the November and December futures have declined $63 and $65, respectively, with the curve’s contango steepening.
CRU: Open interest in December HR futures contract surges
CRU Principal Analyst Josh Spoores shares insight into the hot-rolled coil futures market.