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    April 13, 2023

    HR Futures April Surprise

    Written by Jack Marshall

    Surprise! Instead of $10-$20 per-short-ton (ST) increase expected by most the index for the CME HR jumped $50/ST this week. This caught many by surprise as recent futures activity seemed to reflect a more bearish sentiment. It appears small retail truckload transactions from the mills carried the day. Wednesday HR futures volume was healthy as the near months ticked higher on some short covering. The front month future bounced about $20/ST from the mid $1,165/ST settlement price. Meanwhile, open interest in HR futures has risen about 1,000 lots since the March futures contract rolled off, which is a touch softer than the market finished the end of March.

    We could have a spell of lighter activity as participants look for further signs the HR market will either continue to inch higher or maintain current levels. Recent liquidity issues with banks will likely suppress activity as participants keep inventories tight due to concerns of tightening liquidity from their banks.

    Jakc Marshall, SMU Contrubutor

    Jack Marshall

    Jack Marshall has over 30 years of experience trading and marketing financial futures and swaps, including currencies. Before joining Crunch Risk in 2012, Marshall was responsible for Forex Origination for BofA Merrill Lynch in their Chicago office. For Crunch Risk, he focuses on Ferrous scrap futures and helps manage client communications. Marshall is a regular contributor to the Steel Market Update newsletter covering topics including steel and steel scrap futures. He is NFA registered Associated Person and holds a Series 3 license. Marshall can be reached at jack.marshall@crunchrisk.com.

    Read more from Jack Marshall

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