Hot Rolled Futures Take a Leg Down...

The hot rolled coil futures market took a leg down this week as offers down the curve became more aggressive. After weeks and months of a fairly static forward curve, this renewed downward pressure of the past few days has shaken up the market.

The Q2 traded today as low as $623, the Q3-4 at $627 with weight remaining on the offer side.  Bidders seemed happy to sit back at lower levels and wait for sellers to come down. Buying around $620 may prove to be a good trade particularly on more deferred periods as the market has a tendency to move into contango when the physical market moves down too aggressively.  Nothing much has changed in the spot  market over the past few weeks, with the threat of looming imports in the coming month keeping buyers cautious.