HRC Futures Prices Stuck in Tight Range…

Written by Bradley Clark

The futures market has traded in a very tight range over the past couple of weeks. Prices in the front months, December and January, have continued to firm trading around $670 per ton. The further out, the curve prices have remained backwardated as the risk of imports in the 2nd quarter onwards continues to weigh heavily on the market.  Overall volumes have been light with a few days of decent activity this week, preceded and succeeded by days of inactivity. It seems that the current state of stagnation in the spot market has contributed to these low volumes in the market.  Overall the market continues its “wait and see” approach as we come to the end of the year.

The physical market remains steady with prices trading around $670 per ton.  

{amchart id=”73″ HRC Futures Forward Curve}

U.S. Midwest #1 Busheling Ferrous Scrap (AMM) Prices Settle Nearly Flat in December
The busheling futures market came in sideways this week, under-performing other scrap grades. The market seems to be taking a breather however, as early indications are for an up January due to seasonal factors and continued strong finished steel demand.  The futures market characteristically remained extremely quiet this week as no new entrants have joined the market and existing traders remain on the sidelines. Hopefully, a return of volatility in the coming months may spark renewed trading.

Again, there have been no reported trades this past week.

{amchart id=”74″ BUS Futures Forward Curve}

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