Futures

Hot Rolled Futures Consolidate Recent Gains...

Written by Bradley Clark

April 17, 2014

The hot rolled futures market over the past week has consolidated gains on the nearby months.  May and June have traded to a high of $685 and $680, reflecting optimism in continued short term strength in the physical market. The back end of the curve is not experiencing as strong buying interest, as the Q3 and Q4 periods have traded between $635-645 this week. It seems that the futures market is pricing in a softening in the market after the recent supply disruptions get resolved and imports begin to show up in force.  Overall, the market has been fairly quiet this past week, while volumes have been strong, prices have remained fairly stable.  It feels that over the next few weeks a big move may be had with either June softening or the back end pushing up, depending on whether the physical market strength maintains.  

Volumes have been strong the past week with over 20,000 tons trading.  

Below is an interactive graphic of the flat rolled forward curve as well as what trading looked like four weeks ago. You will only see blank white space unless you are logged into the Steel Market Update website. If you need assistance getting into the website or guidance on how to use the tables and graphs we have available for our members, you can reach us at: 800-432-3475 or by email at: info@SteelMarketUpdate.com.

{amchart id=”73″ HRC Futures Forward Curve}

U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Market is Very Quiet
 
After last week’s gain of $10 / ton the busheling market has gone into hibernation this week. With no physical activity and no futures activity to note.  With the continued strength in the finished steel market, it looks like raw materials should push up again in May.  There are bids down the curve at $360 / ton indicating that a floor around those levels looks to be forming.

Again, there have been no reported trades this past week.

Below is a separate interactive graphic for the busheling scrap forward curve. As with the HRC forward curve graphic mentioned above you need to be logged into the website in order to see the graphics.

{amchart id=”74″ BUS Futures Forward Curve}

Bradley Clark

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