Prices
January 23, 2014
HRC Futures Soften in Uncertain Market
Written by Bradley Clark
The market has taken a decidedly bearish tone this week as many feel the first cracks in the physical market are starting to appear. While prices have come off around $5 down the forward curve, the weight is strongly on the offer side, with few buyers present.
The threat of imports and decreasing raw material costs alongside deteriorating macroeconomic sentiment appears to be the major drivers to this bearish sentiment. With that said the spot market remains fairly buoyant as prices continue to remain steady between $665-$675 / st. Whether the market is set for a prolonged pull back or merely wobbles from current levels before stabilizing again has market participants divided. What seems clearer is that any upward momentum has dissipated for the time being.
