The Raw
Steels Monthly Metals Index (MMI) rose by 8.74% from February
to March. The growth was largely due to the massive increase in the U.S. HRC
Futures contract, which jumped by nearly 49%. Because of this, steel prices
reacted accordingly.
HRC prices continue to show bullish strength in the short term,
even breaking out of their December 2022 highs. However, as prices begin to
breach the $950-1000/ton resistance zone, price action would need to form a new
higher low to confirm the potential uptrend. Should they continue higher, HRC
prices would need to form further bullish patterns to support a possible
longer-term bullish trend. A good indicator would be a retest and hold above
875