Futures

Iron Ore, Scrap Futures Face Uncertainties
Written by Bradley Clark
September 5, 2013
TSI Iron Ore: Prices Stay Firm, Future Is Uncertain…
After breaking through the psychological ceiling of $140/ ton a couple of weeks ago, the iron ore spot market has retreated ever so slightly to $137. While this is not necessarily an indication of a reversal in the pricing trend, it may shed light on some cracks in the markets strength to move higher in the short term.
The futures market remains backwardated with Q4 trading around $130 and calendar ’14 at $117, traders continue to price in a fall in prices. Freight rates continue strengthen which is supporting the delivered China price for ore and demand from mills seems healthy so a significant drop in iron ore prices is not a fore gone conclusion but the market today does feel a bit toppy at these levels.
Volumes on SGX remain very strong.
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Lack of Activity Prevails
The busheling futures contract continues to struggle with liquidity as the market continues to experience low volatility. No trades have been reported the past couple of weeks and values down the curve remain unchanged with Q4 at $390, Q1 $385 and calendar Q4 $390. With the physical market looking like it will come in down $10-15 on busheling, to $395-400 the curve continues to flatten out.
It seems that the lack of volatility over the past few months has thrown cold water on the impetus for physical users to enter the futures market.
Again, there have been no reported trades this past week.
Bradley Clark
Read more from Bradley ClarkLatest in Futures

HR Futures: Rangebound amid muted summer trade
Since the last writing of this article, CME hot-rolled coil (HRC) futures have been largely steady and lifeless, though there’s been some brief bouts of intraday volatility.

HR Futures: Market blues turn bearish
The cautious neutrality and summertime blues we discussed just a few weeks ago have evolved into something decidedly more bearish.

HR Futures: Curve switches gears
After a period of backwardation driven by headlines and CRU index anchoring, the CME HRC curve structure has undergone a notable shift.

HR Futures: Summer doldrums prevail
Not much to report on from the sleepy HRC futures market in the thick of the summer doldrums with trading volume nearly grinding to a halt.

HR Futures: Summertime blues
Coming out of the holiday market and long weekend, it seems the HRC futures market has caught some post-vacation blues.