Scrap Contango continues to shine, despite some selling

Front month edges down but still plenty of Carry available Once again LME Scrap futures dominated the attention of the paper trade on Wednesday, with an initial extension in the nearby Contango turning into a small sell-off as the market approached close. Although the front month finished the trade down on the day, tradeable value … Continue reading Scrap Contango continues to shine, despite some selling

LME Scrap Contango grows again

The opportunity for Cash & Carry is glaring The extreme nearby Contango for LME Scrap futures continued to dominate attention amongst steel futures trading on Tuesday - after all, the physical spot market has shown signs of softening over the past few days and the front month premium that is now trading is equivalent to … Continue reading LME Scrap Contango grows again

Bulk exporters spurn LME Scrap Contango

The futures market continues to incentivise inventory generation It looks like physical deep sea market scrap sentiment is starting to soften, with news of lower-priced bookings circulating after the weekend. It's surprising that accumulators have chased lower bids for prompt cargoes while the front end of the LME Scrap forward curve demonstrates a Contango well … Continue reading Bulk exporters spurn LME Scrap Contango

Steel Futures rally dwindles

Curves soften slightly as paper trade becomes more cautious Tuesday's steel futures trading was a relatively quiet affair, with an early rally in onshore Chinese markets failing to stimulate further gains in the wider world. It looks like some ferrous scrap accumulators started to take note of the LME Scrap curve, which still represents a … Continue reading Steel Futures rally dwindles

Front End Contangoes conceal longer-dated nervousness

Most steel futures remain well-offered beyond nearby periods Nearby steel futures continued to show strength on Thursday, buoyed by a voaltile yet eventually positive day for Chinese onshore futures. Reports that Chinese imports of semi-finished products are already increasing has stimulated buy-side interest for LME mini-mill complex futures. And the renewed bullishness sparked by last … Continue reading Front End Contangoes conceal longer-dated nervousness

Short covering gains pace

Nearby buy-side interest helps finished product futures slightly higher Tuesday steel futures trading was a more positive affair, with shifting dynamics in the Mediterranean scrap market supporting outright levels for LME Scrap and Rebar futures while short coverers pushed the front end of the US HRC futures curve higher, in what looked like another delayed … Continue reading Short covering gains pace

Busheling futures keep pushing higher

Prompt market bulls crush the US forward Metal Margin CME Busheling futures continued to storm higher on Monday, with spot-focussed traders continuing to bet that the monthly physical price settlement will surprise to the up-side even as paper traders have become accustomed to higher levels. Last week's mill price hike announcements seem to have added … Continue reading Busheling futures keep pushing higher

US mills spark short covering with price hikes

Steel Futures curves present flatter shapes with confidence mixed With most of Europe on holiday, Friday's steel futures market focus was on US HRC with two leading producers announcing significant price increases with immediate effect. More bullish traders speculated that mills have done enough to curb capacity in line with dismal demand and rushed to … Continue reading US mills spark short covering with price hikes

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