The war has created a big opportunity for commodity stocks.
Look at Cleveland-Cliffs (CLF), for example.
JPMorgan analyst Michael Glick noted that, “’Russia’s invasion a month ago nearly instantly set off a butterfly effect across the steel markets,’ with the impact only beginning to be felt in North America. When the invasion began, steel exports from Russia and Ukraine almost immediately stopped, while demand in North America is set to grow. That could push steel prices up to $1,500 a ton for 2022,” as noted by Barron’s.
Helping, CLF insiders are buying.
In February, for example, Director Janet Miller bought 1,255 shares for $24,949. In December, Director Robert Fisher Jr. bought 5,000 shares. CEO and Chairman Lourenco Goncalves bought 50,000 shares in December, as well.
Or look at US Steel (X). Over the last few weeks, the stock popped from a low of about $22 to $38.50, and could see higher highs from the war. As noted by TheFly.com, “JPMorgan analyst Michael Glick raised the firm’s price target on U.S. Steel to $33 from $30 and keeps an Underweight rating on the shares. The analyst raised his steel price forecasts to an average of $1,500/t for the remainder of the year and to $1,300/t for 2023.”
Steel ETFs, like the VanEck Vectors Steel ETF (SLX) jumped from $54 to about $70.
Until the war ends, steel stocks, and other commodities could ramp up even more.