HRC Futures: Hedgers Getting Off Sidelines

What happened after the August hot rolled (HR) settlement ($767 per short ton)? The HR index declined over $100/ST and sat in the low $660s as of last week’s activity. This was almost unchanged from the prior week.

Labor market data remains positive, albeit it is a lagging indicator. Interest rates remain unchanged, but Federal Reserve speak of late has been a touch more hawkish. The United Auto Workers (UAW) union has struck the Big 3 US auto companies. Cleveland-Cliffs has raised HR prices to $750/ST. Planned and unplanned HR production disruptions have moved lead times out significantly.

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.