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    CRU

    June 13, 2021

    CRU: Score at Half-time—Will the Strong Recovery Continue?

    Written by Jumana Saleheen

    By CRU Principal Economist Alex Tuckett and Chief Economist Jumana Saleheen

    In this mid-year update to our global economic outlook, we look back at our expectations at the beginning of the year, and those of our surveyed clients, and compare them with actual outcomes over the past six months. Overall, the global economy is in vastly better shape at the start of the second half of 2021 than was expected six months ago, thanks to a powerful combination of mass vaccination rollouts and massive stimulus.

    Jumana Saleheen

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    CRU: Futures contract reaches record open interest as prices rise

    Open interest on CME Group’s hot-rolled (HR) coil futures contract typically builds throughout the month before dropping at the end of the month alongside contract settlement. Analysis in this report is based on an early month view of this open interest as well as prices. Notably, open interest for the HR coil contract is currently at a record high of 849,240 short tons (st) or 42,462 contracts.  Open interest is up 13.8% m/m and 66% higher from the 511,480 st of open interest a year ago. We have found that open interest often rises alongside higher physical prices and that has proven true in this current market environment. Physical prices continue to rise, supported by not only rising demand and domestic production issues, but also on government-restricted imports.

    CRU: HR coil futures re-price 2027 forward curve

    CME Group’s hot-rolled coil futures have jumped higher as the loss of a reheating line at a large Southern mill have renewed domestic production issues. At market close on Oct. 12, the Q4'26 futures are now pricing in $1,295 per short ton (st) for HR coil, a month-over-month (m/m) increase of $63/st. For 2027, the forward curve is up $80 /st vs. September, at $1,207/st. For November 2026 through March 2027, prices are at an average just above $1,300/st.