Will these steel stocks keep rising in the market?
Steel stocks have been performing very well recently. Most people think of gold or silver when looking to invest in mining stocks. Yet plenty of steel stocks are reaching new heights in the market at the moment. In the United States, the quantity of steel mills has declined in recent years as a result of competition overseas.
Production has resumed at major steel operations because of widely distributed vaccines and reopening measures. The demand for steel is high right now which has brought steel prices up as well. Steel is specifically being used a lot more in the industrial sector. Projects can continue at full force that were previously halted due to the pandemic, which brings the demand for steel up.
Steel is also used in most if not all automobiles. There is an automotive boom right now as a shortage of vehicles and parts takes place. Construction and automobiles account for a large amount of steel consumption. As a result, there are many steel stocks that are performing well in the market right now. This hasn’t always been the case, as there are periods of time in which these mining stocks are not performing well. Now there are fears of inflation in the market, and nobody knows what is going to happen with steel stocks as the year progresses. For now, we know that there are plenty of options when investing in steel stocks. Let’s take a look at three that have positive market performance.
Top Steel Stocks To Watch
- Nucor Corporation (NYSE: NUE)
- Steel Dynamics Inc. (NASDAQ: STLD)
- United States Steel Corporation (NYSE: X)
Nucor Corporation (NYSE: NUE)
Nucor Corporation is a steel stock that sells and manufactures steel and related steel products. It produces hot-rolled, cold-rolled, and galvanize sheet steel. The company also sells most steel products you can think of. Nucor Corporation has experienced a great amount of growth in 2021 so far.
On June 22nd it was announced that Nucor has been named the GM Supplier of the Year for the third year in a row. The company is the only electric arc furnace steelmaker to ever receive this award. The President and CEO of Nucor Leon Topalian said, “On behalf of Nucor’s 27,000 teammates, I want to thank GM for this recognition. We value our relationship with GM, particularly working with them through the pandemic which presented challenges for both of our industries. We look forward to strengthening the partnership we have formed.”
NUE stock has been on a steep incline in 2021 so far. When the year started, the company was at $52 per share on average. Now on July 7th, the company has reached over $95 per share. This huge momentum has been caused by the increased demand and usage of steel in the market, as well as company advancements. Is this a steel stock you will consider for your watchlist?
Steel Dynamics Inc. (NASDAQ: STLD)
Steel Dynamins Inc. is a steel stock that produces and recycles the metal. The company operates in the United States. It offers steel operations products such as hot roll, cold roll, and coated steel products and more. Most of its products are used in automotive, construction, manufacturing, heavy and agriculture equipment, and transportation sectors.
On July 7th, Steel Dynamics announced that it will buyback additional shares worth $1 billion effective immediately. This is an addition to its earlier $500-million program that had $51 million remaining authorized and available for repurchase.
Recently this company also set the goal to achieve carbon neutrality by 2050. Its President and CEO Mark D. Millett said, “Based on International Energy Agency recommendations for the steel sector, Steel Dynamics’ current steelmaking operations already fall within the 2050 intensity targets designed to meet the Paris Agreement and its 2°C scenario. Further, the company is aligned with the Science-Based Targets Initiative (SBTi) as its EAF steel mills plan to meet the SBTi “well below 2°C” scenario target for Scope 1 and 2 combined emissions intensity by at least 2030, based on the Iron & Steel Sectoral Decarbonization Approach.” Will STLD stock be on your list of steel companies to watch?
United States Steel Corporation (NYSE: X)
United States Steel Corporation is a steel stock that produces and sells flat-rolled and tubular steel products. Its products are mostly sold in North America and Europe. Its flat rolled product section sells slabs, strip mill plates, sheets, and more. The company has a variety of other products in its lineup as well. Throughout 2021, this company has seen a significant amount of momentum.
On July 6th, the U.S. Steel Foundation has awarded college scholarships to twenty students across the United States. All of the recipients are children of U.S. Steel employees. The President and CEO said, “The U. S. Steel Scholarship Program allows us to recognize the remarkable achievements of the outstanding children of our valued employees. At U. S. Steel, our Culture of Caring not only extends to our employees, but also to their families, the communities where we operate, and the next generation of leaders. We are proud to recognize these students and wish them the best in their academic pursuits.”
X stock was at $17 per share when 2021 started. Now after some dips and spikes, X stock is at nearly $23 per share as of July 7th. Will X stock enter your steel watchlist?
Steel Stocks In 2021
It seems like most if not all steel stocks have increased in the market this year. This is a result of rising steel prices, increased demand, and industrial usage increases. With inflation fears nobody knows what could happen to the sector. For now, which steel stocks will make your watchlist?
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