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Argus’s spot HRC assessment is currently $895.50, and their spot plate price assessment is now approximately $1,845.50, giving plate a $950/st premium over HRC, according to Argus’s most recent reports. This is a reversal; traditionally, plate prices have generally lagged $100/st below HRC. In recent months, the three major plate producers in the US have only dropped plate prices by minimal amounts. However, there are concerns that new capacity and cheaper imports could weigh on plate prices in the future. |
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Due to falling demand and oversupply, prompt month July CME HRC futures have dropped nearly 40% since early April, with last trade at $910/st (7:00 AM CST). HRC Steel end-users might utilize the recent price drop by applying hedges that provide upside price protection, such as buying swaps or call options, both of which would establish a maximum price. Such positions are basic for end-user hedging; however, they can result in opportunity costs or cash costs if metal prices decrease. Please contact AEGIS for specific strategies that fit your operations. (7/15/2022) |
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Note: Clients with AEGIS Platform access can see this and other research, plus hedge portfolio reporting and tools here. |
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Price Indications |
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Today's Charts |
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AEGIS Insights |
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07/13/2022: AEGIS Factor Matrices: Most important variables affecting metals prices 07/07/2022: Have Copper Prices Begun to Find a Bottom? 06/23/2022: What is Green Steel Anyways? |
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7/13/2022: Historic US plate/HRC spread stokes concerns 7/13/2022: Column: Collapsing metal inventories clash with plunging prices 7/13/2022: Latin America steel demand to fall in 2022 -industry report 7/12/2022: US HRC: Prices fall below $900 7/12/2022: Goldman goes cold on copper price 7/12/2022: China ramp-up pushes aluminum prices to 14-month lows 7/11/2022: Explainer: What happens if Germany's Russian gas flows stop 7/11/2022: Column: China's massive stimulus talk does little for metals as confidence fades 7/11/2022: Indian shares pare losses to end flat after reports of export tax on steel ending 7/11/2022: India’s finished steel exports fall 53 per cent in June |
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Important Disclosure: Indicative prices are provided for information purposes only, and do not represent a commitment from AEGIS Hedging Solutions LLC ("Aegis") to assist any client to transact at those prices, or at any price, in the future. Aegis makes no guarantee to the accuracy or completeness of such information. Aegis and/or its trading principals do not offer a trading program to clients, nor do they propose guiding or directing a commodity interest account for any client based on any such trading program. Certain information in this presentation may constitute forward-looking statements, which can be identified by the use of forward-looking terminology such as “edge,” “advantage,” “opportunity,” “believe” or other variations thereon or comparable terminology. Such statements are not guarantees of future performance or activities.
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