2 iron ore stocks to buy as steel prices continue to rise by StockNews
© Reuters. 2 iron ore stocks to buy as steel prices continue to rise
President Biden’s $ 1.2 trillion infrastructure bill, which aims to propel the U.S. economy into transformative growth, bodes well for the steel industry. In addition, production cuts imposed by the world’s largest steel producer, China, have recently pushed steel prices to record highs. In this scenario, we believe it may be wise to bet on iron ore stocks BHP Group (NYSE 🙂 and Vale SA (VALE) as they are poised to profit from the rise in steel prices. Read on. The industrial metals sector is on track to return to pre-pandemic levels with the reopening of industrial activities around the world. In addition, the Biden administration’s $ 1.2 trillion bipartisan infrastructure framework, which the Senate recently passed, bodes well for the industrial metals sector.
Since steel is widely used in construction and manufacturing, the spending proposed by Biden could be a transformational investment that will provide steel producers with great growth opportunities. In addition, as China has pledged to limit its steel production this year to combat industrial pollution, steel prices are skyrocketing.
And with this surge in steel prices expected to continue in the near term, we believe iron ore stocks BHP Group (BHP) and Vale SA (VALE) could be ideal bets to take advantage of the uptrend.
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