Steel Revisited

Hey Influence Traders,

I’m out in the mountains shooting steel.

(I’ll give you the details on that another time — when they’re declassified.)

But that got me thinking again about the steel industry.

Infrastructure Needs Steel

Steel is a hot commodity.

We don’t know the final details of the Biden infrastructure plan — but spending on some level is going to occur.

And whether it’s traditional or green infrastructure, builders are going to need steel.

Global Shortage

With demand about to spike, there is a global shortage of steel.

The shortage is not just a U.S. problem, but a global one being driven by supply chain disruption and worldwide demand.

That is causing steel to hit record highs.

And the ripples of rising prices are colliding with Biden’s Buy America initiative.

Even Steel Can Ripple

I’m still a fan of Cleveland-Cliffs Inc. (Ticker: CLF).

CLF is an independent U.S. iron ore mining company and a supplier of iron ore pellets to the North American steel industry. It’s mines and processing facilities are located in Michigan and Minnesota.

CLF is American-owned and has been making strategic acquisitions to help solidify its competitive position and entrench it as a leader in steel production in parts of the U.S.

But if steel is in short supply perhaps recycling is the answer …

And that’s why I like Schnitzer Steel Industries Inc. (Ticker: SCHN), which is an Oregon-based manufacturer of recycled metal products 

SCHN is also a global leader in the collection, processing, and sale of steel. The company processes scrap metal and manufactures finished steel products from its own scrap.

It will also benefit from the global supply shortage of steel — and from the Buy American infrastructure bill. 

Expect SCHN to be added to the Power Moves Portfolio.

Cutting Through the Noise for You.

Frank Gregory

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