Prices
July 30, 2020
Hot Rolled Futures: Stretching the Rubber Band
Written by Tim Stevenson
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.
China continues to drive ferrous markets. Ore prices remain well over $100/ton as demand from China remains robust. There have been some comments recently out of China and Australia, noting that supplies of ore should improve later in 2020, and that may well happen. We have already seen ore inventories start to rise, as shown in the following chart:
