Futures

HRC Futures Market: August Contract Volume Down

Written by John Packard


The number of open contracts (open interest) traded through the CME Group (NYMEX) during the month of August 2013 was 2,572 contracts (51,440 tons). This is lower than the 2,874 contracts (57,480 tons) traded in July and is 15.8 percent lower than the 3,055 contracts traded one year ago (61,100 tons).

The news looks a little brighter when comparing year-to-date (YTD) numbers. Through the end of August the volume totaled 37,533 contracts (750,660 tons) up from the 29,483 contracts traded during the same time period in 2012 (589,660 tons).

Below is the forward curve for hot rolled coil (HRC) futures as of the end of August. We have provided the information in both a table and graph format. Our graph also shows where the forward curve was four weeks earlier.

Latest in Futures

HR futures: Nucor’s price cut makes its mark on steel markets

When we were asked to provide some additional commentary to SMU about the futures markets for flat rolled, our only reluctance to contribute was rooted merely in the fact that SMU (1) already offers an excellent array of authors on this topic and (2) a concern regarding what new ground could be covered that hasn’t already been discussed to death on this issue. Thankfully, however, Nucor has offered up something we can describe, without hyperbole, as simply revolutionary for spot pricing in flat rolled - a development that we simply could not resist commenting on with respect to its probable impacts on the futures market.