Futures
March 28, 2019
HRC Futures: Curve Flatter
Written by Gaurav Chhibbar
Gaurav Chhibbar is a partner at Metal Edge Partners, a firm engaged in Risk Management and Strategic Advisory. In this role, he and his firm design and execute risk management strategies for clients along with providing process and analytical support. In Gaurav’s previous role, he was a trader at Cargill spending time in Metal and Freight markets in Singapore before moving to the U.S. You can learn more about Metal Edge a www.metaledgepartners.com. Gaurav can be reached at gaurav@metaledgepartners.com for queries/comments/questions.
The HRC forward curve came under significant pressure as the market saw a downward print in the benchmark HRC index on Wednesday. Concern over future pricing of HRC and sliding spot levels meant sellers were looking for those bids even if it meant shaving off the price levels considerably. Day-over-day the Q2 price levels came down by $9, while Q3 dropped by $12. Q4 price levels came down by $5, however a surprising positive change in December meant a relatively modest drop in Q4 versus the rest of the curve.
