Investing....What about Steel Stocks ?
I took a load of scrap metal to the salvage yard and nearly had to pay them to take it. I remember several years ago people everywhere were dragging trailers loaded to the hilt with steel to the yards making good money scavenging. So I thought I'd investigate a little.
US steel (x) is selling for around $12 / share right now Less than 12 months ago it was near $50 In 2008 it was $196 Right now it is at a 10 year low. I'm reading that China is the major producer and supplier but their economy is faltering and the steel companies are in danger of going belly up. When this happens we should see prices move up. Thinking about throwing 5 at it but don't want to wait for a Chiefs SB win to make a profit. Thoughts ? |
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For what Pittsburgh is going to do to us this weekend, it would be smart to invest in steel.
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Could really weigh down your portfolio.
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Now its at 12.00 :hmmm: Any thoughts how much lower you think it might go. I'm reading it won't go any lower or just mostly sideways but agree with the next 12 months. Seems like every time I see an opportunity and wait then I wake up after it's too late. |
Chinese companies are all state controlled. They don't go "belly up".
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Possible Game-Changers
As mentioned before, a very high-profile overture by the Chinese government to shore up its vast network of steel mills could keep cheap steel flowing throughout most of the world. An effort from the U.S. government to bring more parity to North American prices and the rest of the globe, meanwhile, would change the price equation considerably. “The only way steel prices can come down markedly here is if North America starts equalizing with international prices,” Anton said. “But it hasn’t done so in four to five years and I don’t see a big push for it to do so next year. And if bankruptcies don’t happen in China and the government bails out their steel mills, that means prices stay very low at least until mid-year and if the Europeans fail, prices will rise. If China doesn’t bail out the steel mills, they start going bankrupt this year and early next year and prices go up :shrug: |
A year ago I got .39 cents a pound for a truckload of scrap I wanted to get rid of. A few weeks back I got .03 cents a pound for the same truckload.
It was hardly worth the gas to take it up there, but still cheaper than having the trash haulers take it. I wouldn't buy any stocks at this time in this industry unless you want to wait ten years for it to rebound. |
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I have been cleaning out my parents house. The metal that we find is not worth the trip to the junkyard. There was a lot. pans, shelves, random crap. We were told 60.00 a ton.
So most of it went in the garbage-land fill. I feel bad, but the dumpster was more cost effective with everything else we had to dump. (BTW 50 cu yards of stuff from my parents house) Two years ago-at the farm equipment auction-guys were in a bidding war for scrap metal. Batteries, milk cans, old iron, barn tin. Heard China was making metal and selling it as scrap. |
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