2nd chance to buy Hot Rolled Coil Steel

Don’t you wish your next BBQ investing ‘tip’ was to buy Hot Rolled Coil Steel futures ??

Check out the parabolic price move in Hot Rolled Coil (HRC) Steel.

Prices have quadrupled since August 2020.

That’s more than Bitcoin, shares in Tesla & Afterpay and definitely more than Sydney real estate.

At these extremes, coupled with a bunch of other metrics and observations, I’m looking a pullback in the price to the $1,080 – $1,210 mark, which is an approx. 30% decline from its current $1,658.

The elevated price of HRC is a little different and more so deserved when compared to my past parabolic commentary in Corn, Soybeans, Tesla, Bitcoin, Lumber or Copper which involves replenishing supply, diminishing re-investment, overvaluation or a mania…..

as HRC is a ‘worked’ product resulting inputs and manufacture but is also a beneficiary of strong demand, tightening supply and capacity constraints.

Should HRC decline, I’ll watch for investing opportunities in the shares of companies such as Angang Steel, Bluescope Steel, Arcelor Mittal and U.S. Steel.

June 23, 2021

by Rob Zdravevski

rob@karriasset.com.au