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    April 7, 2016

    Hot Rolled Futures: Prices Gap Higher in Concert with Announced Mill Price Increases

    Written by Jack Marshall

    The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Jack Marshall of Crunch Risk LLC. Here is how he saw trading over the past week:

    HR futures activity, 11,900 ST traded this past week, had been relatively quiet until yesterday afternoon when prices “gapped” higher. This move could have been in response to announced mill price increase announcements and higher prices being paid for scrap. All week participants had been bid last value ($490 ST[$24.50cwt]) for May’16 through Dec’16.   The futures curve May’16 out through Cal’17 was basically settled flat @ $490 ST. On Friday Jan’17 and Mar’17 both traded @ $490 ST[$24.50cwt] on 600 ST/mo.

    Jakc Marshall, SMU Contrubutor

    Jack Marshall

    Jack Marshall has over 30 years of experience trading and marketing financial futures and swaps, including currencies. Before joining Crunch Risk in 2012, Marshall was responsible for Forex Origination for BofA Merrill Lynch in their Chicago office. For Crunch Risk, he focuses on Ferrous scrap futures and helps manage client communications. Marshall is a regular contributor to the Steel Market Update newsletter covering topics including steel and steel scrap futures. He is NFA registered Associated Person and holds a Series 3 license. Marshall can be reached at jack.marshall@crunchrisk.com.

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