Hot Rolled Futures Drop to the Pychological $500 Level

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

The focus in HR this past week has been primarily in Q4’16 and 1H’17. Futures prices have dropped to the psychological $500 level and just below for this futures range. We are seeing more interested buyers down at these sub $500 levels however the notional amounts have shrunk as participants behave more cautiously. The levels also represent about a 50% retracement of the price increase from the mid $300 dollar level to the $640 level. The forward discount for this period is running just over $30/ST based on the last reported index release.

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.