What about ''STEEL'' will it even make a come back?

B

bat1

All I hear is how the global economy is booming and even China
is making a comeback .

Why is Steel still so weak?

I want to invest in some Steel stocks they sure are looking cheap

Maybe somebody could tell me what the future of steel looks
like and will it comeback?


Thanks,
 
See copper for a reference point.
All metals are weak because China is not getting stronger. Construction loans are now tough to get over there....and that's killing construction....and thus the demand for steel and copper.
 
Ominous at best:

Hot Rolled Coil Spot Pricing Below Fair Value for Ninth Week

By Steel Market Update - Mon 15 Apr 2013 10:32:58 CT
Written by: Brett Linton

This week, the SMU Fair Value HRC (hot rolled coil) Model has spot HRC pricing below Fair Value for the ninth consecutive week after briefly rising above the Fair Value price in the week of February 8th. This is due to the SMU average spot HRC index declining $15 to $590 per ton and scrap inputs decreasing $15-$20 per ton from the month of March. The Fair Value model now shows HRC prices $45 below the estimated Fair Value price.

As a reminder, the Fair Value HRC Model below came from the SMU acquisition of Steel Reality. The graph below demonstrates the relationship between scraps inputs creating an estimated "Fair Value" for HRC versus the actual spot price.

http://www.cmegroup.com/education/market-commentary/metals/2013/04/pre-open-_3608.html
 
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