Hot Rolled Futures: HRC, Busheling Futures Break Lower Under Weight of Coronavirus

The following article discussing the global ferrous derivatives markets was written by David Feldstein. As an independent steel market analyst, advisor and trader, we believe he provides insightful commentary and trading ideas to our readers. Note that Steel Market Update does not take any positions on HRC or scrap trading, and any recommendations or comments made by David Feldstein are his opinions and not those of SMU or the CRU Group. We recommend that anyone interested in trading steel futures enlist the help of a licensed broker or bank.

Fundamentals for the steel industry have been impressive thus far in 2020. This seasonality chart of unadjusted monthly auto sales shows February sales going back to at least 2014. 2020 year-to-date sales are the second best of the seven years listed below and the best since 2016.