Futures
October 22, 2020
Hot Rolled Futures: Demand and Supply Mismatch
Written by Tim Stevenson
SMU contributor Tim Stevenson 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 Tim’s previous role, he was a Director at Cargill Risk Management, and prior to that led the derivative trading efforts within the North American Cargill Metals business. You can learn more about Metal Edge at www.metaledgepartners.com. Tim can be reached at Tim@metaledgepartners.com for queries/comments/questions.
Steel futures have continued to be well bid over the past week. Tightness in the physical market has been well telegraphed by the extended mill lead times, and the potential Cliffs/Arcelor deal has caused some uncertainty as to when restarts of additional blast furnaces will take place. The below chart shows the week/week move in the HRC curve:
