The Rising Influence of Rising Affluence

[winchem21]

Like oil & natural gas, steel elevated for several years with HRC likely to hold in the $1,100-$1,300 / ton range, a sweet spot equivalent to oil at $70-$80 per barrel.

Strong expectations for 22-23 with EV production increase announcements from F and GM this week coupled with chip availability tailwind and pent-up demand from consumers & rental companies that will take several years for auto industry to address.

Interest rate spikes are also driving rotation out of growth sector into value plays such as steel, which continues to be dramatically undervalued.