3 Steel Stocks That Have Gained More Than 30% This Year
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Update time : 2022-12-12 20:09:13
The steel industry has lost momentum since April this year after enjoying a short-lived bull run, as steel prices fell off the cliff after a massive spike in March 2022, following Russia's invasion of Ukraine.
The industry staged a strong recovery last year after the pandemic-led downturn, thanks to solid pent-up demand and a rally in steel prices to historic highs. The resumption of operations across major steel-consuming sectors such as construction and automotive, following the easing of lockdowns and restrictions globally, led to an upturn in steel demand.
However, steel prices have witnessed a sharp correction globally this year as the Russia-Ukraine conflict, skyrocketing energy costs in Europe, persistently high inflation, interest rate hikes and the slowdown in China due to new COVID-19 lockdowns have dwindled demand for steel across key end-use markets.
The current challenges in the steel industry should not, however, leave investors shunning the stocks belonging to this space. We believe that stocks like Olympic Steel, Inc.ZEUS, Commercial Metals CompanyCMC and Steel Dynamics, Inc. STLD are worth adding to your portfolio now.
