Prices
October 27, 2022
HRC, BUS Futures: Making New Lows as 14-Month Decline Seeks Support
Written by David Feldstein
Editor’s note: SMU Contributor David Feldstein is president of Rock Trading Advisors. Rock provides customers attached to the steel industry with commodity price risk management services and market intelligence. RTA is registered with the National Futures Association as a Commodity Trade Advisor. David has over 20 years of professional trading experience and has been active in the ferrous derivatives space since 2012.
The October hot-rolled coil (HRC) future expired earlier this week at $756 per net ton, a $43 decline versus September. Since breaking below $800/ton in September, HRC futures have yet to find a support level, thus continuing to trend lower. The rally from $500/ton in August 2020 to $1,900/ton took 12 months. It has now seen 14 months of declines since peaking above $1,900/ton last August. Are we nearing a bottom? Is the final capitulation stage of the cycle coming? The lowest priced December future has made new recent lows each of the last two trading days with 120 tons traded earlier today at $668/ton.
