Chinese Steel Mills Unprofitable

It's not looking good for steel, iron, nickel and zinc.

Aluminium Deficit Coming

Aluminum is expected to go in deficit in the coming years. Since steel is correlated to aluminum, you can also buy steel companies. Hint: ArcelorMittal.

Iron Ore Inventories Are Rising

Iron ore has huge problems.

 

Investing in Steel with Arcelor Mittal

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.

The Effect of Russia Sanctions: Russia Targets Belgium Steel Industry

What is nice about this blog is that you get news from other parts of the world, outside the U.S, namely Belgium.

Apparently Russia is threatening to close down one of the European division of the major Russian steel giant NLMK ($7 billion market cap) if sanctions were to go through. We're talking about 1000 jobs lost in Belgium due to these possible sanctions.

This is only one country, I can imagine that many other European countries will see an effect of the Russia sanctions.

And when efficiency is lost in the economy, inflation will arrive sooner than later.