With the recovery taking shape, steel prices are soaring. Rising stock prices in the group has many steel stocks breaking downtrends. Demand is picking up as the economy improves. S&P Global Steel data shows that steel prices have increased nearly 60% in the first two quarters of 2021.
The World Steel Association is forecasting a 5.8% increase in steel demandfor 2021, as global economies recover from the pandemic. President Biden’s infrastructure and jobs plan is proposed to earmark approximately $115 billion for infrastructure projects (road repairs and bridges). An additional $85 billion is allocated to modernize transit systems. – Yahoo
The Vaneck (SLX) Steel ETF is showing a break of trend. We will watch for follow through in the individual steel stocks as well.
Cleveland-Cliffs – CLF
Cleveland-Cliffs (CLF) is the largest flat-rolled steel producer in North America, after acquiring ArcelorMittal USA and AK Steel last year. That helped it transform from an iron ore miner.