Futures
Hot Rolled Coil Futures Ascend Amidst Mill Price Hikes…
Written by John Packard
November 7, 2013
As expected a couple of mills have announced hot rolled coil price increases today, with more expected to follow in the coming days. These hikes have been anticipated by most in the physical market but appear to have caught a few in the paper market off guard as bids quickly entered the market at extremely high levels for the Dec contract at $674 and $660 for Jan. As it stands now the paper market looks to be in a full upswing as offers have left the market and bids have become more aggressive. With scrap prices settling around $30 higher the market looks to remain firm for the next few weeks.
The futures market has seen a definite uptick in volumes over the past couple of weeks that coincides with a renewed belief that the physical market will move higher as we get closer to the end of the year. A mixture of short covering and new longs coming into the market have spooked sellers. As for now it looks like the direction is only one way. To play devil’s advocate, the threat of imports and the actual imports coming into the market in q1 may damper sentiment but it appears that for now it is all go go go….
Volumes have surged over the past week with over 60,000 tons trading.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/john-packard.png)
John Packard
Read more from John PackardLatest in Futures
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/09/HRC-Futures.png)
HR futures: Trade case action official – It was already priced in?!
This month’s column on the markets could be a response to the question of last month, “Are the forward curve prices on Aug. 7 high enough to price in trade case risks?" The market’s answer has been a pretty resounding YES so far, I think.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/09/HRC-Futures.png)
HR futures: Trying to form a bottom
On Aug. 14, the chairman of the world’s largest steel producer, China’s Baowu Steel Group, had some alarming news. He told staff at the firm’s mid-year meeting that conditions in China are like a “harsh winter” that will be “longer, colder and more difficult to endure than expected.”
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/trading_screen.png)
HR futures: Lack of good news leads futures lower
The front end of CME hot-rolled (HR) coil steel futures contracts had drifted lower when this article was filed on Thursday afternoon. And the back end of 2024 had also come under pressure. Despite staging a late-month rally at the end of July back into the low $700s per short ton (st) range, the lead […]
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/trading_screen.png)
HR futures: Forward premiums remain substantial. Are they substantial enough?
Another month for hot-rolled (HR) coil, and another disappointing one for the bulls. They are still holding onto hope that the bottom is here and still pointing to an imminent uptick in HR prices.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/09/HRC-Futures.png)
HR futures: Trend reversal or bear market head fake?
Cleveland-Cliffs and Nucor each raised their respective hot-rolled coil (HRC) prices this week. Since last Wednesday’s settlement, the Midwest HRC futures curve has rallied as much as $63 in the September future.