Futures
July 21, 2016
Hot Rolled Futures Move $3 to $7 Higher in Past Week
Written by David Feldstein
The following article on the hot rolled coil (HRC), busheling scrap (BUS), and financial futures markets was written by Dave Feldstein. As Flack Steel’s director of risk management, Dave is an active participant in the hot rolled coil (HRC) futures market and we believe he will provide insightful commentary and trading ideas to our readers. Besides writing Futures articles for Steel Market Update, Dave produces articles that our readers may find interesting under the heading “The Feldstein” on the Flack Steel website www.FlackSteel.com.
CME HRC futures have moved up between $3 and $7 in the past week. The CME HRC futures curve remains steeply backwardated, but as physical prices remain in the $620 – $630 level, futures prices are increasing as they are literally being pulled up the curve with every passing day. Considering August’s first print is less than two weeks from today, prices would have to fall around 5 percent to reach last night’s settlement at $593.
