With the rally looking set to continue, I am watching the steel sector for good plays.
My favorite steel company is X as steel demand and pricing seem to be favorable in the next few quarters.
PKX is a good asia play, it has lots of investment in emerging markets like India, Indonesia.
STLD is a scrap steel play.
Expect a 20% appreciation of stock prices in the steel sector.
Catalyst:
Obama’s high speed rail
China’s continued growth
Declining Iron Ore prices
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