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    July 17, 2014

    Hot Rolled Futures Prices Pop after Weeks of Malaise...

    Written by Bradley Clark

    The hot rolled steel futures market has perked up in the past few weeks with recent bullish events in the physical market supporting prices.  After months of trading in a strong backwardation, prices on the nearby months July, August and September have pushed higher trading near parity with spot prices, between $650-665 per ton.  Further down the curve the Q4 has moved up $15 per ton to $645 from recent levels of $630.

    Q1 and cal 15 have ascended by around $10-15 per ton as well trading around $635-640.  The recent move in prices has coincided with an increase in volumes as well with well over 50,000 tons trading in the past week.  The positive momentum stems from a physical market that is bucking the trend of a summer lull with firming prices. With positive trade action by the US government regarding the importation of foreign OCTG products, a lack of imports coming from Black Sea, better mill discipline in pricing and a strengthening underlying economy, prices for domestic HRC remain well supported. 

    Bradley Clark

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