FWIW it looks to me like FRD benefits only from rising hot rolled coil prices rather than high prices.
Inventory is carried at average cost and they seem to carry a few months of inventory so when prices rise they can charge the higher price from stuff they bought at prices from 2 months ago.
It’s a lot harder to make money when you require rising prices than when you just require high prices.
The backdrop here is pretty good for them, but there is a meaningful component of these numbers that is going to be temporary.
I’m long on this as a trade, but I suspect current numbers are grossly distorted.
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