Steel prices are going through the roof since China (the largest producer of steel in the world) curbed its steel production.
To benefit from this, we buy steel producers outside of China like Arcelor Mittal, trading at a PE of only 2 and below book value. Due to lower steel production in China, iron ore prices have fallen tremendously.
Arcelor Mittal imports half of its iron and that means that costs will be lower.
Arcelor Mittal produces most of its steel in Europe and U.S.A.
Analysts are very bullish on Arcelor Mittal.
The future is bright, since steel is being used for wind turbines and electricity pylons.
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