Contangoes resume for Steel Futures

Outlook still mixed on EAF prospects Once again the steel futures complex is tending towards Contango, with a softening in sentiment for prompt Deep Sea scrap supply undermining the front end of the LME Scrap curve and a chronic drop in the weekly CRU index print on Wednesday confusing pretty much everyone when it comes … Continue reading Contangoes resume for Steel Futures

Greater Support for Finished Product Futures

But Metal Margin curves continue to point in opposite directions The two tradeable Metal Margin futures curves continued to point in different directions on Monday. Softer sentiment for prompt scrap supply coupled with a tick up in the spot rebar index helped the front end of the LME EAF differential curve edge slightly higher. But … Continue reading Greater Support for Finished Product Futures

EAF Futures diverge by region

Suprise Busheling pay sparks US short-covering EAF futures moved in different directions by region on Thursday, with a large volume nearby CME Busheling purchase sending the US complex quickly higher into the close while the LME was offered lower again. Friday's opening electronic trading saw a mild reversal of this divergent trend. But we suspect … Continue reading EAF Futures diverge by region

Steel Futures find a floor on short covering

Sell-side pressure persists as traders nervously watch finished products pricing Most steel futures markets found a floor on Wednesday after the previous day's widespread sell-off, with onshore Chinese futures setting the precedent early on. CME HRC futures moved higher and the Metal Margin forward curve gained as well. LME EAF complex futures were the odd … Continue reading Steel Futures find a floor on short covering

Delayed Drop – Contangoes tested by Complex sell-off

Steel Futures dropped on Tuesday in line with the upside down WTI market Having defied the late collapse in oil prices at Monday's close, steel futures staged a delayed catch up on Tuesday with all ferrous markets moving sharply lower. A dearth of fresh purchases from Turkish mills saw more inventory-holders move in and hedge … Continue reading Delayed Drop – Contangoes tested by Complex sell-off

Daily Futures Update 20/04/2020

Steel Futures listless amid oil market collapse, US Contangoes persist The huge collapse in the oil market dominated news in all commodities markets on Monday, with the WTI front month trading at negative values (and dramatically so, at that) for the first time. Steel futures was understandedly quiet as paper traders first attempted to consider … Continue reading Daily Futures Update 20/04/2020

Daily Futures Update 16/04/2020

Paper trading rangebound as market awaits finished product price recovery Most steel futures settled slightly lower on Thursday as the paper market watched the physical spot market keenly for signs of support. Turkish mini-mills have floated higher rebar export offers in the hope of recouping higher raw materials costs and to hang on the coat … Continue reading Daily Futures Update 16/04/2020

Daily Futures Update 15/04/2020

Higher Finished Product Offers lead Steel Futures in cautious revival International market finished steel product prices are starting to pick up in as news of China's gradual restart seems more promising than many expected and steel mills work hard to claw back some of the gains they have paid on raw materials. LME Rebar futures … Continue reading Daily Futures Update 15/04/2020

Daily Futures Update 14/04/2020

US Steel Futures Carry opportunities persist as LME complex edges towards Back The LME mini-mill futures complex continued to shift higher at the front end on Tuesday, in line with another rally in the spot market for obsolete scrap. But concerns about the lack of corresponding recovery in finished product prices pushed both curves towards … Continue reading Daily Futures Update 14/04/2020