US steel market maybe on a merge of recovery
While 2019 has clearly been a very challenging year for just about everyone in the steel supply chain, there are some early indications that things are starting to turn around at least modestly. This is being helped by expectations that scrap prices have finally bottomed out and hopes that steel buyers could become somewhat less cautious, especially if, as some hope, trade negotiations between the US and China are fruitful. However, given recent slower US and global economic growth and concerns about manufacturing activity, it is possible that average 2020 steel prices could be subdued -- possibly below those for 2019
How NYMEX's Steel Futures Contracts Relate to the Physical Steel Markets
Steel prices have seen substantial movements in recent years. The price range over the past two years for hot rolled coil steel futures covers around $350, or over 50% of the current prices. With this level of volatility, steel industry firms have been embracing risk management strategies throughout the value chain, as can be seen in the increased NYMEX futures volumes.