Futures improve in April after flat March

摘要

Global ferrous future markets have showed mixed results over March, but with Asian future markets generally in positive territory. Both SHFE rebar and HRC futures are trading higher compared to last month, with a good rally in the most active trading months over trading days in April. HRC's most active trading contract was up 8%, and rebar was up 12% just in the first half of April. However, iron ore continues to be the center of attention, with supply tightness in the cash market. The most active iron ore future contract (May-19) on DCE was up 15% in the same period. The 62% Fe SGX May-19 contract traded in comparison from $82-$92/dmt, up 12%. Iron ore futures are still trading in backwardation on both the SGX and DCE. However, the balance of the year is trading above $80/mt for 62% Fe futures on the SGX. Last year, this level proved to be a strong resistance level for iron ore prices.