Steel futures rally continues as LME Scrap Contango strengthens and US HRC shorts seek cover Steel futures market confidence continued to build on Thursday, with a resurgence in buy-side interest for nearby LME Scrap futures coinciding with increased short covering interest for US HRC futures. LME FOB China HRC futures posted even more significant gains, … Continue reading Daily Futures Update 20/02/2020

EAF margin futures keep edging higher, finished product sentiment improved EAF conversion margin futures moved higher again on Wednesday as sentiment for finished products continued to improve while long scrap futures position holders were happy to take some risk off the table. Both scrap futures markets are now trending towards Backwardation (beyond the front month), … Continue reading Daily Futures Update 19/02/2020

Forward EAF conversion margins edge higher, finished products pessimism weakens The forward curves for EAF conversion margins moved slightly higher on Tuesday as steel finished products futures showed tentative signs of recovery. Scrap curves traded in a presentation that supports an outlook of healthy demand and limited supply, while US HRC futures short coverers chased … Continue reading Daily Futures Update 18/02/2020

Steel Futures end the week higher than the last, traders still cautious Steel futures markets carried most of this week's gains into the weekend, albeit with a markedly more cautious approach by most to Friday's trade. The LME EAF segment rally looked to sputter and run out of steam as some paper market traders feared … Continue reading Daily Futures Update 14/02/2020

Steel Futures front months are still well bid Front month Steel Futures continued to gain ground on Thursday, with higher index prints for ferrous scrap and rebar going some way to support expectations that buyer reluctance to consider ex-China offers on force majeure concerns will support demand for production elsewhere around the world. There were … Continue reading Daily Futures Update 13/02/2020

CME & LME EAF conversion curves diverge on cloudy finished products outlook Nearby strength continued to characterize the LME EAF segment on Wednesday, when the spot market for both instruments rose further and paper market traders bet this rally will be sustained. But CME US HRC futures remained well offered, particularly at the front end, … Continue reading Daily Futures Update 12/02/2020

Sellers unload on Q2-20 US HRC futures, LME Scrap curve still rising Scrap futures markets continued to move higher on Tuesday with reports that several EAF steelmakers need to cover shorts, but all other steel futures curves struggled to find a bid. The LME Rebar futures curve continued to lag, while sellers unloaded Q2-20 US … Continue reading Daily Futures Update 11/02/2020

Forward EAF margin squeeze continues on poor finished products outlook LME Scrap futures continued to rise on Monday, despite more concerning news about the still escalating Coronavirus outbreak over the weekend and some very pessimistic moves from other financial markets. Reports of a series of new deep sea scrap bookngs by Turkish mills has paper … Continue reading Daily Futures Update 10/02/2020