Hot Rolled Futures: Raw Materials Roar

SMU contributor Tim Stevenson is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Tim’s previous role, he was a Director at Cargill Risk Management, and prior to that led the derivative trading efforts within the North American Cargill Metals business. You can learn more about Metal Edge at www.metaledgepartners.com. Tim can be reached at Tim@metaledgepartners.com for queries/comments/questions.

Raw materials are the foundation of steel making and, along with energy, are oftentimes the first indicator of a price move in the final product. Iron ore has confounded the skeptics through this entire pandemic, staying much higher than the bears felt was reasonable. And now, prices have not only just held in there but have ripped above $90/ton! China’s steel production has remained very strong – and in April, their production was up year over year, coming in at 85 million tons for the month (last April was just over 83 mmt).