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    Hot Rolled Futures: Now What?

    Written by Andre Marshall


    The following is an analysis of trading over the past week in the financial markets, especially in the hot rolled coil derivatives (futures) and busheling scrap futures markets. This article was written by Andre Marshall, CEO of Crunchrisk, LLC and the instructor for the Steel Market Update Managing Price Risk series including our newest addition: Managing Price Risk II: Strategies & Execution which will begin taking registrations for tomorrow. Dates are June 24 & 25, 2014 in Chicago. More details will be on our website on Friday, April 25th. By the way, if any of the article below is gibberish to you then you are a candidate for our Managing Price Risk I workshop. If you understand most of it and now you want to learn how to incorporate it into your business, you are a candidate for our Managing Price Risk II: Strategies & Execution workshop.

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    Plate supply squeeze tightens as demand presses higher

    The domestic plate market is showing few signs of relief for steel buyers. Lead times are stretching well beyond seasonal norms, spot availability has all but evaporated, and mills are drawing hard lines on contract volumes heading into 2027 negotiations. And the supply squeeze will likely intensify in a market that some industry sources say is structurally undersupplied because of stringent US trade and tariff policies. Imports have been arriving in larger volumes, and the expectation is they will continue to tick higher into 2027. The big question is whether those foreign tons will arrive in volumes sufficient to provide the relief steel consumers want.