With the economy's continuing recovery and the resumption of construction activities, steel demand is expected to go up. Therefore, we think it could be wise to bet on quality steel stocks ArcelorMittal (NYSE:MT) and Reliance Steel (RS). Analysts have recently upgraded their ratings. Read on.The steel industry received a setback as China, one of the world’s largest steel exporters, announced recently that it is cutting back on steel production to reduce carbon emissions. However, steel prices have soared this year and could continue to rise in the coming months as the demand for raw materials increases and supply constraints remain.
As the economy reopens and construction activities continue to rise, the demand for steel is expected to increase steadily. According to a MetalMiner report, the World Steel Association expects steel demand to increase by 4.5% this year.
So, we think it could be wise to bet on quality steel stocks ArcelorMittal (MT) and Reliance Steel & Aluminum Co. (RS), both of which analysts have recently upgraded.