Steel Industry Starts 2021 on Upbeat Mood: 5 Solid Picks
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Update time : 2021-01-12 22:00:09
The steel industry has kicked off the new year on a high note building on the strong recovery that started in the final quarter of 2020. Shares of major steel companies are heading higher this month. The momentum has been driven by surging steel prices on the back of rising steel demand amid supply shortage and prospects of infrastructure stimulus package this year from the Biden administration.
Material stocks got a thrust after the U.S. Congress formally certified Joe Biden as the next President last Thursday. Biden has proposed spending $2 trillion over four years to boost clean energy and rebuild infrastructure. The planned investment includes building and repairing roads, bridges, water systems, electricity grids and broadband aimed at fixing America's "crumbling" infrastructure.
American steel stocks have been gaining this month on hopes that the sizable infrastructure spending would have a beneficial effect on the U.S. steel industry given the expected increase in consumption of the commodity that is used to make almost everything from rail tracks to roads to bridges and tunnels.
