Prices
October 5, 2018
Upside Price Risk Mounts for Steel Industry as Buyers' Strike Extends into Third Month
Written by David Feldstein
The following article on the hot rolled coil (HRC) futures market was written by David Feldstein. As the Flack Global Metals Chief Market Risk Officer, Dave is an active participant in the hot rolled futures market, and we believe he provides insightful commentary and trading ideas to our readers. Besides writing futures articles for Steel Market Update, Dave produces articles that our readers may find interesting under the heading “The Feldstein” on the Flack Global Metals website, www.FlackGlobalMetals.com. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations made by David Feldstein are his opinions and not those of SMU. We recommend that anyone interested in trading steel futures enlist the help of a licensed broker or bank.
The CME Midwest HRC futures continue to be rangebound and steeply backwardated. The chart below shows the curve settlements on 10/3/18 and 9/4/18. November, December and January 2019 have gained $20-$30 in that time, continuing to reward those buying the front of the curve. There has been almost no change in futures prices starting in February 2019 onward.
