FILE PHOTO: A steel coil is unrolled on the line at a steel mill in Pennsylvania, U.S., March 9, 2018. REUTERS/Aaron Josefczyk
NEW YORK (Reuters) – Several U.S. steel company shares could rally along with a rise in the commodity’s price, according to an article in Barron’s that also urged caution on the stocks because of historical volatility.
The price of steel has climbed to $703 per net ton, and some analysts expect it to reach near $800 or above in the next year, according to Barron’s.
The article pointed U.S. Steel Corp as the pick among big producers but urged investors to stick with a one-year time horizon and to watch steel and iron prices.
Commercial Metals Co and Steel Dynamics Inc were other inexpensive stocks that benefit from defensive positions as low-cost producers, according to the article.
Reporting by Lewis Krauskopf; Editing by Cynthia Osterman