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    June 4, 2020

    HRC Futures Quiet While Busheling Breaks Lower and Iron Ore Attempts to Rally

    Written by David Feldstein

    SMU Contributor David Feldstein is president of Rock Trading Advisors (davidfeldstein@rocktradingadvisors.com, twitter @TheFeldstein). In addition to market analysis, RTA provides price risk management not only for ferrous products, but also base metals, energy and interest rates. RTA also trains sales staff and creates the infrastructure necessary for firms to offer their customers fixed pricing on physical sales.  

    Due to a shortage of scrap creation resulting primarily from the shutdown of the automotive industry in April, Midwest busheling experienced a supply shortage, which drove its price higher while most other commodity markets were in freefall. June and July busheling had been trading in the $330-$340 range since mid-May until Tuesday when aggressive selling pushed the curve $15-$20 lower. With a week to go until the June scrap settlements, the expectations of a $10-$20 increase for Midwest busheling looks to have adjusted lower, pointing to a flat to $10 MoM increase.

    David Feldstein, SMU Contributor

    David Feldstein

    SMU Contributor David Feldstein is president of Rock Trading Advisors. David has over 20 years of financial market trading experience and has been active in the ferrous futures space since 2012. Feldstein earned an MBA from the University of Chicago Booth School of Business with concentrations in economics, statistics and analytical finance. He can be reached at davefeldstein@gmail.com.

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