HRC Futures: Breaking Bad to New Multi-Month Lows

The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. 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 downtrend that started in June 2018 continues as settlements remain below the downward trend line pictured below (red) with the trend evolving with lower highs and lower lows. As noted in previous articles, the 2nd month (May) Midwest HRC future is unequivocally in a bear market.