Steel Futures Sentiment Continues to Soften

Unclear spot market direction is weighing on forward prices CME Busheling futures continued to slide on Tuesday. A pause in the wider scrap market rally increased concerns that supply will catch up more quickly with demand than some previously envisaged. Plus the narrow forward differential with US HRC futures reduces the potential for another run … Continue reading Steel Futures Sentiment Continues to Soften

Nearby LME Metal Margin Jumps

Cautious Scrap sentiment provides some relief to the EAF diff Metal Margin futures exhibited the most interesting moves amongst the steel futures complex on Monday, which was a relatively quiet affair for most instruments. Lower iron ore and mainland China steel pricing undermined the recent bout of bullishness that has characterised paper trading - for … Continue reading Nearby LME Metal Margin Jumps

US Futures Sell Off on BF-Restart News

Pressure renews on CME Metal Margin futures as paper trade anticipates battle for market share US EAF Complex futures dropped from yesterday's highs as the paper market digested news of blast furnace restarts on Wednesday. And CME Metal Margin futures were battered lower again with paper traders anticipating an unpleasent fight for market share. Nonetheless … Continue reading US Futures Sell Off on BF-Restart News

Spot Scrap pushes higher, US BFs schedule restarts

CME EAF Contangoes may come under pressure The spot market for deep sea scrap continued to push higher on Tuesday, with reports of new cargo purchases well above $260/mt CFR Turkey and both LME EAF forward curves shifting further into Backwardation. US steel futures trading was compratively quiet, dominated by buy-side interest in the early … Continue reading Spot Scrap pushes higher, US BFs schedule restarts

Steel Futures Lethargic, Shrug Off Iron Ore Rally

5% jump in the spot price for ore fails to stimulate a discernable gains in associated markets Monday trading began with spot iron ore prices surging out of the gates, following news that more than 10% of Vale's output in Brazil has been shuttered due to the spread of COVID. Considering the news, steel futures … Continue reading Steel Futures Lethargic, Shrug Off Iron Ore Rally

Unclear spot direction leads to more pronounced Contango

Steel Futures remain bid at a premium to spot before the weekend but confidence is less notable Steel futures tended further towards Contango on Friday when the physical market failed to renew its vigour on the back of lower Chinese onshore prices. LME Rebar futures were the exception, with news of fresh bulk Turkish export … Continue reading Unclear spot direction leads to more pronounced Contango

Steel Futures drift lower

The iron ore rout has disarmed forward price bullishness With iron ore futures drifting lower again on Thursday there was no clear direction for Steel Futures, with LME EAF futures softening slightly while US HRC futures found some longer-dated buy-side support. The impact on Metal Margin futures is seemingly one of normalisation, with forward implied … Continue reading Steel Futures drift lower

Scrap Futures Collapse

Prime & obsolete scrap futures melt down on increased Metal Margin scrutiny It didn't take much to derail the steel futures rally - iron ore dropped back below $100/mt on Wednesday and the raw materials side of the segment collapsed. LME Scrap and CME Busheling futures led the complex lower, with prime futures printing some … Continue reading Scrap Futures Collapse

Iron Ore Drags the Segment Higher

Relative-value traders push scrap into Contango Bullishness from the iron ore market is clearly spreading, with all steel futures trading higher on Monday and LME Scrap futures sustaining an aggresive Contango despite another improvement in spot market prices. This instrument continues to trade to the benefit of physcal cargo accumulators - relative value traders are … Continue reading Iron Ore Drags the Segment Higher

EAF futures pinch continues

Tight raw materials supply remains at odds with poor finished products demand Steel futures continue to hover in a holding pattern as the battle between tight raw materials supply and poorly demand for finished products plays out. LME paper traders remain convinced that tightness in supply won't just push scrap prices higher, but cause higher … Continue reading EAF futures pinch continues