Mill margins continue to strengthen as HRC futures rally

摘要

New York—Hot-rolled coil futures continued their march higher during the week ended March 23, as margins continued to increase, with busheling scrap futures taking a breather. 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. Looking forward scrap prices holding recent high levels along with capacity coming back online will put pressure on margins. Rising transportation costs and the competition for ships to haul scrap containers were also adding some fuel to the fire.