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    HRC Futures: Addressing Risk in Uncertain Times

    Written by Josh Pankratz & Logan Davis


    If the last few years have taught us anything, it is that nothing is certain. This past weekend we saw yet another unexpected event begin to unfold in the Middle East. In the aftermath, we lack clarity in the responses of many global actors, and ultimately where and how this will percolate throughout the world. The human and geopolitical consequences are well documented and speculated on in other publications and media outlets. Thus, I encourage you to seek other sources if you are interested in those theories.

    For those of us who make our living in the steel industry, we eventually need to think about how this may impact our markets and our companies.

    Logan Davis

    Read more from Logan Davis

    Latest in Prices

    Nucor increases spot HR to $1,240/ton

    Nucor said on Monday, Oct. 12, that its consumer spot price (CSP) for hot-rolled (HR) coil will be $1,240 per short ton (st) this week, a $10/st increase from a week earlier. The CSP for HR coil from California Steel Industries (CSI) on the West Coast will be $1,305/st, up $15/st from the prior week. Nucor is still offering lead times of three to five weeks, according to the letter to customers. You can track mill price announcements on our website. Steel Market Update (SMU) published a weekly price assessment on Tuesday, Oct. 6, showing HR coil prices averaging $1,270/st, up $10/st from the previous week. We will update our prices on the evening of Tuesday, Oct. 13.

    Leibowitz: US steel prices skyrocket above world prices. Which are right?

    Steel markets in the United States now feature supply shortages. Spot tons are well-nigh unavailable, and even contract tons are scarce. Based on the available statistics, the US market for flat-rolled products is seriously constrained. The US economy is still the strongest in the world, and manufacturing output remains vigorous. But the available supply is tight. The reason is fairly obvious. US domestic supply has increased a bit. Meanwhile, imports have fallen significantly.