For Immediate Release
Chicago, IL – May 13, 2010 – Today, Zacks Equity Research discusses the Metals & Mining Industry, including U.S. Steel Corp. (X), Steel Dynamics Inc. (STLD), Nucor Corporation (NUE), Barrick Gold Corporation (ABX) and Newmont Mining (NEM).
A synopsis of today’s Industry Outlook is presented below. The full article can be read at http://www.zacks.com/stock/news/34125/Metals+%26amp%3B+Mining+Outlook+%26amp%3B+Review+-+May+2010.
The World Steel Association has forecasted a 10.7% increase in global steel demand in 2010 and 5.2% increase in 2011 compared to 2010 level. The increase will be driven by strong growth in Chinese steel demand. China’s steel use is expected to increase by 6.7% to 579 million tons in 2010.
With steel demand picking up, steel producers are restarting facilities. Recently, U.S. Steel Corp. (X) — the eighth largest steel producer in the world, the largest integrated steel producer headquartered in North America and one of the largest integrated flat-rolled producers in Central Europe — has restarted its blast furnace at its Hamilton, Ontario plant after a nine-month shutdown.
The current surge in steel demand will narrow losses for the third largest steel maker Steel Dynamics Inc. (STLD) and the largest recycler of steel scrap in the U.S., Nucor Corporation (NUE).
Gold’s value and wealth preservation attributes continue to attract investors and consumers. According to the World Gold Council, total demand for the metal is expected to rise in 2010. Jewelry and investment demand in non-western markets has rebounded from the low levels in 2009, while industrial demand has started to recover in response to an improvement in economic conditions.
The outlook for investment is positive overall, with absolute levels of demand likely to remain well supported by continued economic and currency uncertainty, inflation concerns and the search for diversification. We expect to see a continuing trend among central banks diversifying away from their dollar exposure in their reserves in favor of the proven store of value represented by gold. Barrick Gold Corporation (ABX) and Newmont Mining (NEM) are showing strong levels of production.
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