Futures
Iron Ore & Scrap Futures Firming
Written by John Packard
November 7, 2013
TSI Iron Ore: Market Remains Firm
Iron ore prices have continued to be strong as Rebar futures have bounced off recent months lows last week and spot steel in China continues to go higher. Over the past couple of weeks iron ore prices have pushed up around $5/ton down the curve with Q1 trading around $130, Q2 $122 and the cal 14 at $121. Volumes remain very strong both in the physical market as well as the futures market as ore record level of ore has moved out of Australia’s Port Hedland in October. There is still some wariness in the market as to whether prices can top $140 this year before retreating. As always time will tell…
U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Prices Continue to Firm
The busheling futures market continues to go from strength to strength this past week as prices have continued their upward trend. The Nov and Dec have been bid as high as $450 / ton last week before pulling back to around $430. Dec and March traded small volume yesterday at $430 per ton, registering the first cleared trade in months which hopefully is a sign of good things to come as volatility looks to re-enter the physical market. Indications are that the market will settle up at least $30 dollars to $430 in November and possibly up again in December . The continued strength in finished steel prices plus the historically strong winter periods for scrap pricing have coincided to push prices higher.
Again, there have been no reported trades this past week.
John Packard
Read more from John PackardLatest in Futures
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.
HR Futures: Financial players bullish on price, physical market participants not
We can interpret that managed money still has expectations of price strength while physical participants are running closer to a balance on a net basis.