The market capitalization of the Iron & Steel Industry as a whole has doubled in the last decade. This is impressive considering the performance of the S&P 500 during the last ten years. Additionally, the Iron & Steel Industry is a senior citizen of the stock market, though its combined business performance remains vigorous in an exemplary manner. Overall, this part of the economy remains attractive for stock investors in the face of the uncertainties that have plagued the first half of 2008.
There are five kinds of stock listing from this industry that particularly deserve investor attention. Firstly, there are niche producers of special grades of steel. They enjoy relatively durable demand and attractive margins to boot. Specialized steel producers are attractive stock investment destinations in all economic climates. Some stocks in this industry derive strength from processing services. Their margins are insulated from market fluctuations.
Stocks of third world producers listed on North American exchanges are also attractive. Iron and steel are material building-blocks of emerging economies. China has an especially rapacious appetite for iron and steel. Companies with strong presences in this country, and with exports from China to nations in Africa, are extremely profitable for stock investors.
Multiple manufacturing locations help in this business. Access to mineral deposits, varying exchange rates, labor cost differentials, and logistics all contrive to make specific country-sites advantageous from time to time. A global player has the best chance of sustained stock performance. This is also why companies with wide baskets of industrial clients are best suited for stock investment support.
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