Investing in Steel Stocks

Roberto Rivero

In this article, we take a look at some of the best steel stocks to watch in 2024 and provide step-by-step instructions on how to invest in steel shares with Admirals!

Why Invest in Steel

Steel is the backbone of the modern world, with the metal used across a wide range of industries, particularly construction. Bridges, railways, roads, automobiles and buildings, are all produced using steel.

Therefore, demand for steel tends to be cyclical. When the economy is growing, there is more construction and, consequently, demand for steel increases. The opposite is also true.

Investing in steel, then, is an investment in economic growth. In 2024, demand for steel is expected to grow in most markets, although is anticipated to drop in China, the world’s number one consumer and producer of steel.

The Best Steel Stocks to Watch

So, which steel stocks could potentially benefit from a continued increase in demand for steel in the future? In the following sections, we will take a look at three steel companies to watch in 2024.

Steel Stocks List
ArcelorMittal
Nippon Steel
Nucor

ArcelorMittal

ArcelorMittal was formed in 2007 by the merger of European company Arcelor and India’s Mittal Steel which, at the time of the merger, were the world’s two largest steel companies.

ArcelorMittal operates around the world, offering a fair amount of geographical diversity and, consequently, possibly a good option for those looking to invest in global growth. Despite having a global footprint, the steel stock’s European segment generates the lion’s share of revenue, accounting for almost 60% of sales in 2022.

At the time of writing, the steel company has a dividend yield of 1.68%.

Nippon Steel

Nippon Steel is the largest steel producer in Japan and, in December 2023, struck a deal to acquire US Steel for almost $15 billion in cash.

Although Nippon’s shares dipped as the news broke, the company’s president, Eiji Hashimoto, said that he “doesn’t care about short-term stock moves”, stating that Nippon wants to “complete a global network for a new era in the industry”.

The acquisition would allow the steel company to significantly expand its operations in the US, which is the world’s largest market for high-grade steel and where steel demand is expected to increase. Another region where Nippon is hoping to expand is India, which is forecast to experience strong demand growth in the coming years.

At the time of writing, Nippon Steel has a dividend yield of 4.36%.

Depicted: Admirals MetaTrader 5Nippon Steel Weekly Chart. Date Range: 25 June 2017 – 17 January 2024. Date Captured: 17 January 2024. Past performance is not a reliable indicator of future results.

Nucor

Nucor is the largest steel producing company in the world by market capitalisation and was a pioneer in the use of electric arc furnaces, which are smaller and more cost efficient than blast furnaces, for high-volume steel production.

The steel stock has experienced impressive levels of growth in recent years. From the start of 2020 until the end of 2023, Nucor’s share price rose 210%. That’s more than tech stocks Apple, Amazon and Meta have grown over the same time period.

But, even after this remarkable growth, Nucor currently trades at a price to earnings ratio of 8.6, less than half the average of the S&P 500 at the time of writing. Furthermore, Nucor is a dividend king, a title bestowed on stocks which have increased their annual dividend for at least 50 consecutive years. At the time of writing, Nucor has a dividend yield of 1.26%.

Depicted: Admirals MetaTrader 5 – Nucor Weekly Chart. Date Range: 16 July 2017 – 17 January 2024. Date Captured: 17 January 2024. Past performance is not a reliable indicator of future results.

How to Invest in Steel Stocks

With an investing account from Admirals, you can buy shares in the three steel stocks examined in this article. In order to learn how to invest in steel stocks, follow these steps:

  1. Register for an Invest.MT5 account.
  2. Log in to the Dashboard.
  3. Open the MetaTrader web terminal.
  4. Search for the steel stock you want to buy and click the symbol to open a price chart.
  5. Press ‘Create New Order’ enter the number of steel shares and click ‘Buy’.
Depicted: Admirals MetaTrader WebTraderNucor H1 Chart. Date Captured: 17 January 2024. Past performance is not a reliable indicator of future results.

Investing with Admirals

With an Invest.MT5 account, you can invest in over 4,500 stocks and more than 200 Exchange-Traded Funds (ETFs). Click the banner below to register for an account today:

Invest in the world’s top instruments

Thousands of stocks and ETFs at your fingertips

FAQ

Is it good to invest in steel?

The steel industry is cyclical, with demand tending to increase when the economy is growing. Consequently, if investors feel confident about the global economy, steel may be a good investment. However, it is important to conduct your own research and evaluate whether investing in steel fits with your individual circumstances and investing goals.

How do you invest in steel?

There are a number of options for those looking to gain exposure to the steel industry. Two of the best options for a long-term investment in steel include buying shares in a company which operates in the sector or investing in a steel ETF.

INFORMATION ABOUT ANALYTICAL MATERIALS:

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
  • Any investment decision is made by each client alone whereas Admirals shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
  • With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  • The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
  • Any kind of past or modeled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admirals for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
  • Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.
TOP ARTICLES
The Best Cobalt Stocks to Watch
Cobalt is a metal which is poised to play a key role in the global energy transition, due to its use in lithium-ion batteries. So, how can investors gain exposure to this metal? In this article, we will examine 2 top cobalt stocks for investors to consider and demonstrate how to invest in cobalt sto...
Investing in Utility Stocks
Utility companies are responsible for providing households and businesses with electricity, gas, water, waste disposal and other necessary services in the modern world. Whilst investing in utilities may not be considered as exciting as other industries such as technology, utility stocks can form par...
Top 3 Best Tin Stocks to Watch
When talking about valuable metals, tin is hardly the first one that comes to mind. But this commodity has been drawing attention from investors recently. The best tin stocks to watch have become an interesting alternative if you are looking for ways to diversify your portfolio within the precious...
View All