Futures
Iron Ore & Scrap Futures Firming
Written by John Packard
November 7, 2013
TSI Iron Ore: Market Remains Firm
Iron ore prices have continued to be strong as Rebar futures have bounced off recent months lows last week and spot steel in China continues to go higher. Over the past couple of weeks iron ore prices have pushed up around $5/ton down the curve with Q1 trading around $130, Q2 $122 and the cal 14 at $121. Volumes remain very strong both in the physical market as well as the futures market as ore record level of ore has moved out of Australia’s Port Hedland in October. There is still some wariness in the market as to whether prices can top $140 this year before retreating. As always time will tell…
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Prices Continue to Firm
The busheling futures market continues to go from strength to strength this past week as prices have continued their upward trend. The Nov and Dec have been bid as high as $450 / ton last week before pulling back to around $430. Dec and March traded small volume yesterday at $430 per ton, registering the first cleared trade in months which hopefully is a sign of good things to come as volatility looks to re-enter the physical market. Indications are that the market will settle up at least $30 dollars to $430 in November and possibly up again in December . The continued strength in finished steel prices plus the historically strong winter periods for scrap pricing have coincided to push prices higher.
Again, there have been no reported trades this past week.
John Packard
Read more from John PackardLatest in Futures
HR Futures: Meaningful rally grips market
Another eventful week in the physical and financial steel markets is coming to a close. Most importantly, this week provided complete clarity that, after months of waiting for a catalyst, we are now definitively in the early stages of a meaningful rally. The 3rd month future (currently the April contract) rose more than 8% for […]
HRC and scrap futures: Markets pop on hot steel and tariff headlines
It’s been an event-filled month in US ferrous derivatives markets since my last column for SMU. There’s been no shortage of writings and musing about the ongoing steel and aluminum tariffs proposed by the Trump administration. And steel and scrap futures markets have responded accordingly. CME HRC futures prices have risen, and the curve has firmed. The February 2025 HRC futures contract, now in the pricing period, has added $47 per short ton (st) since its contact lows on Jan. 20 to settle at $767/st today.
HR Futures: What’s next for HRC and busheling prices?
Since the publication of our last market update on Dec. 10, several notable developments have shaped the landscape
HR Futures: Awaiting Trump’s 25% tariff
Midwest HRC indices have been stuck in a tight range since last summer with the weekly CRU Midwest HRC price spending the past 32 weeks between $656 and $714 per short ton (st). The rolling Midwest HRC future has been rangebound between roughly $650 to $800 since last June. The rate at which the price of HRC futures move over a certain period or “volatility” has compressed dramatically over the past few months.
HR Futures: Market coiled and ready to move in 2025?
The last six months have been littered with uncertainty and mixed signals, a choppy and rangebound market. Spot indices have largely held steady, despite the pressure from domestic mills pushing for higher prices on spot tons. This has provided a signal of a lack of upward momentum and little downside room based on mill costs. […]