February 15, 2022

February ’22 CME HRC Steel futures last settled at $1,131/T and has slid nearly $500/T since late August 2021. American steel producers have ramped up production, according to the American Iron and Steel Institute.  However, automotive production has slowed, according to the US Federal Reserve.   

The forward curve for CME HRC steel futures has flattened tremendously in recent weeks. However, it is still backwardated, meaning that future prices are lower than spot prices. Consumers can take advantage of this backwardation by purchasing swaps or call options. Please note that doing so might incur losses if prices slide further. The CME HRC steel market is thinly traded, so please contact AEGIS for strategies. (2/15/2022)  

Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. 

Price Indications

Today's Charts

AEGIS Insights

01/26/2022: AEGIS Factor Matrices: Most important variables affecting metals prices

01/10/2022: Section 232 Tariffs: Most relevant developments (AEGIS Reference)

11/30/2021: Will the Omicron COVID Variant Impact South African Metals Production or Exports?

Important Headlines & Economic Data

AISI Steel Capability Utilization Rate

Investing.com Economic Calendar 

2/14/2022: Steel prices hit lowest level in a year

2/14/2022: A vital US-Canadian border crossing reopens after trucker blockade of Ambassador Bridge is cleared

2/10/2022: Indonesia suspends operations of more than 1,000 miners