Steel is one of the world's most important materials and it is estimated that around two billion tons of the iron-carbon alloy are consumed every year. Most of this is needed to make buildings, bridges, motor vehicles and heavy machinery. Steel will continue to play a very important role in the global economy and demand will remain high. For shareholders, this provides an opportunity to invest in companies in the steel industry. We present a selection of steel stocks in this article.
Nucor
- Company: Nucor Corp
- Symbol (TWS): NUE
- ISIN: US6703461052
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar (USD)
- Market capitalization: USD 34.44 billion
- Sales (TTM) in USD: 43.15 billion
Nucor is one of the largest steel producers in the USA and is headquartered in Charlotte, North Carolina. Formerly known as Nuclear Corporation of America, the company is over 100 years old and rose to become the largest US producer after selling most of its other businesses. Nucor uses electric arc furnaces, which are much more efficient than the blast furnaces that have traditionally dominated the industry. The electric furnaces are smaller, less costly to operate and easier to ramp up or down based on demand, so company results are better when steel demand drops. Nucor has also proven to be one of the best capital allocators in the industry, investing and acquiring companies when demand is low and valuations are reasonable.
United States Steel
- Company: United States Steel Corporation
- Symbol (TWS): X
- ISIN: US9129091081
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar (USD)
- Market capitalization: USD 4.83 billion
- Sales (TTM) in USD: 22.35 billion
United States Steel is a Pittsburgh, Pennsylvania-based manufacturer and seller of steel products. The company operates in three business segments: Flat-Rolled Products, U.S. Steel Europe and Tubular Products. After less-than-successful fiscal years in 2019 and 2020, the company saw significant increases in sales and profits in 2021, as well as in the first quarters of 2022. United Steel's share price rose significantly in the first months of the year, peaking at USD 39. However, the share was not spared the overall market correction and corrected by around 50 % in the subsequent months.
Salzgitter
- Company: Intuitive Surgical Inc
- Symbol (TWS): SZG
- ISIN: DE0006202005
- Stock exchange: XETRA
- Country: Germany
- Currency: Euro (EUR)
- Market capitalization: EUR 1.25 billion / USD 1.24 billion
- Sales (TTM) in USD: 11.97 billion
Salzgitter AG, based in the town of the same name, Salzgitter, in Lower Saxony, is a leading German steel group and generated sales of just under 10 billion euros in the past financial year. The group consists of more than 100 individual companies and currently employs around 23,600 people. Salzgitter's business is divided into five divisions, with the company being one of the largest producers in Europe, particularly in the flat steel and section steel segments.
ArcelorMittal
- Company: ArcelorMittal SA
- Symbol (TWS): MT
- ISIN: LU1598757687
- Stock exchange: Euronext Amsterdam
- Country: Netherlands
- Currency: Euro (EUR)
- Market capitalization: EUR 19.35 billion / USD 19.16 billion
- Sales (TTM) in USD: 85.01 billion
ArcelorMittal is one of the largest steel producers in the world. Its headquarters are officially in Luxembourg, although the company is actually run from London. ArcelorMittal was formed in 2007 through a merger of the Dutch Mittal Steel Company and the Luxembourg-based Arcelor Group. The company manufactures a wide range of steel products at facilities in Europe, North and South America, Asia and Africa, and operates iron ore mines in several countries. The core U.S. production business has been sold to Cleveland-Cliffs, but ArcelorMittal remains the main source of supply for much of the developed world and for emerging markets where steel demand is expected to be highest in the coming years.
Rio Tinto
- Company: Rio Tinto PLC
- Symbol (TWS): RIO
- ISIN: GB0007188757
- Stock exchange: London Stock Exchange
- Country: Great Britain
- Currency: British pound (GBP)
- Market capitalization: GBP 95.33 billion / USD 115.03 billion
- Sales (TTM) in USD: 60.19 billion
Rio Tinto is a diversified global mining company headquartered in London. The company focuses primarily on the production of industrial metals, including the three most commonly used metals - iron ore, aluminum and copper. Rio Tinto is not only a leading global producer of aluminum, but also a leading producer of iron ore, an important component of steel. The company's iron ore operations in Australia consist of an integrated network of world-class mining facilities, processing centers, rail lines and port terminals that help keep costs low.