Futures
Hot Rolled Futures Prices Pop after Weeks of Malaise...
Written by Bradley Clark
July 31, 2014
The HRC futures market has continued its upward trend in the past few weeks with recent bullish events in the physical market supporting prices. While nearby periods remain firm with August and September trading around $650-660, further down the curve cal 15 prices have trended upwards trading up to $643. Similarly, Q1 and cal 15 prices have seen upward pressure trading between $635-645, with the bid moving up $5 / ton from last week.
Further news from the physical market of yet further consolidation with Severstal being sold to domestic mills has continued to support prices. So far, the summer lull has not materialized and with U.S. GDP at 4 percent growth the demand side looks to help prices extend further. Increasing tensions in the Black Sea continues to limit new imports on HRC from Russia, the fundamentals look to support the market through the end of the year.
Volumes have slowed a bit this week with about 10,000 tons trading over the past few days.
Below is our interactive graph depicting the hot rolled futures market. The graph can only been seen and interacted with when you are logged into the website and reading this article online (otherwise it just appears to be an empty space on your screen).
{amchart id=”73″ HRC Futures Forward Curve}
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Market Firming
The scrap market remains flat for the time being, but sentiment is slightly more bullish compared to last week. With increasing finished product prices, and strengthening raw material markets across Asia and Turkey, market sentiment moving into August is becoming more positive. The futures market has remained quiet with nothing trading however the market remains well bid down the curve between $390-400.
Another one of those pesky interactive graphs below – this time depicting ferrous scrap futures.
{amchart id=”74″ BUS Futures Forward Curve}
Bradley Clark
Read more from Bradley ClarkLatest in Futures
HR Futures: Correction in market after big rally
Another eventful week in the physical and financial steel markets is coming to a close, but with a markedly different tone than the last update at the end of February.
HR Futures: Market drifts lower on light volume
Over the past couple of weeks, Midwest HRC futures have been drifting lower on light volume. This begs the question if the rally has run out of steam, or is it catching its breath after ripping roughly $150 in less than two weeks? The April CME Midwest HRC future made an intraday high at $976 […]
HR Futures: Uncertainty hangs over the steel market
Uncertainty has remained a dominant theme in the US ferrous derivatives markets over the past month. And the Trump administration's tariffs on steel and aluminum are still top of mind for market participants.
HR Futures: Major trade developments lift the ferrous complex
Headline risk has returned to the ferrous complex, with both hot-rolled coil (HRC) and busheling ferrous scrap (BCH) markets surging in response to fresh trade restrictions.
HR Futures: Midwest ferrous futures consolidate gains, market anxiously awaits next move
Four weeks have passed since the last article from Rock Trading Advisors on January 30. The paint has dried, and Midwest HRC futures have exploded higher in response to President Trump’s declaration of impending 25% tariffs on all imported steel products. The rolling 2nd month CME Midwest HRC future erupted through the top end of its downtrend, one that dates back to the peak of the winter 2022 rally. It also broke out of its narrow range seen dating back to June of last year.