Prices
July 25, 2024
HR futures: Shifting risk profiles, emerging opportunities
Written by John Medich
Summer is here, and a familiar sentiment has hit the hot-rolled coil (HRC) futures market. Prices continue to decline in both the spot market and the futures market, with expectations of sub-$800 prices for the remainder of the year.
While market sentiment may cast a wave of “doom and gloom,” some notable changing dynamics will likely shape the market for the rest of the year. Instead of focusing on predictive questions like “What price are we going to?” or “When will the market turn around?”, we take a different approach. We focus on probabilistic distributions and how different key factors shift where the market is skewed, both up and down.
