The price of ASTM A36 hot rolled coil in the fourth quarter is easy to rise

This week, the price of ASTM A36 hot rolled coil in the United States continued to rise, and the market was bullish. As of October 14, the ex factory price of American hot rolled coil mills (Midwest) was $717 per ton, the highest since April 30, 2019. The logic of price increase is due to the fact that some steel mills are still under capacity and the demand of automobile manufacturing industry is strong.

Some market participants said that the delivery date of many steel mills has been extended to late November or December, and the shortage of supply has supported the upward trend of ASTM A36 hot rolled coil price in the short term; with the recovery of new and idle production capacity in the fourth quarter, as well as the improvement of slab production, more resources will flow into the market in the next few months. However, some opponents pointed out that due to the NLMK US factory strike and the reduction of Brazilian slab supply (section 232 slab quota reduction), the supply of hot rolled coil may still be tight in the fourth quarter, and the price of hot rolled coil is easy to rise but difficult to fall.