Futures
Hot Rolled Futures Prices Pop after Weeks of Malaise...
Written by Bradley Clark
July 17, 2014
The hot rolled steel futures market has perked up in the past few weeks with recent bullish events in the physical market supporting prices. After months of trading in a strong backwardation, prices on the nearby months July, August and September have pushed higher trading near parity with spot prices, between $650-665 per ton. Further down the curve the Q4 has moved up $15 per ton to $645 from recent levels of $630.
Q1 and cal 15 have ascended by around $10-15 per ton as well trading around $635-640. The recent move in prices has coincided with an increase in volumes as well with well over 50,000 tons trading in the past week. The positive momentum stems from a physical market that is bucking the trend of a summer lull with firming prices. With positive trade action by the US government regarding the importation of foreign OCTG products, a lack of imports coming from Black Sea, better mill discipline in pricing and a strengthening underlying economy, prices for domestic HRC remain well supported.
After weeks of market sentiment being split as to which way the market will break, it is clear at least for the near term, the bulls have been right and prices are set to increase.
Volumes have been very robust this week and last, with more than 50,000 tons trading.
In the white space below is an interactive graph on the hot rolled futures forward curve. The graph can only be seen when reading the newsletter on our website.
{amchart id=”73″ HRC Futures Forward Curve}
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Market Firming
The scrap market came in slightly up, but mainly flat to the June pricing this month. With increasing finished product prices, and strengthening raw material markets across Asia and Turkey, the early sentiment for this month is positive. The futures market has remained quiet with nothing trading however the market remains well bid down the curve between $390-400 per ton.
The second of our interactive graphics – this time showing the busheling scrap forward curve. If you are looking at white space its because you need to read the newsletter on the website… Need help? We are here to do just that – contact us at 800-432-3475 or by email at info@SteelMarketUpdate.com.
{amchart id=”74″ BUS Futures Forward Curve}
Bradley Clark
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