US ferrous futures rally as supply constraints push prices higher for longer

摘要

New York—Hot-rolled coil and busheling scrap futures rallied April 13, recovering from a slight selloff during the prior week, as market participants looked to roll long hedges and take advantage of the backwardations, while short hedgers were able to sell into the rally in Q3 and Q4. The market remains susceptible to large price swings as short interest continues to hold, with bank analysts forecasting that mill margins will correct in the medium term but the strength in steel prices will support rising margins in the near term as lead times remain elevated.