With the price of copper, nickel, and other industrial metals rising recently, investors have been flocking to the industry in droves. While this has been great for companies such as New York-based mining firm Lexington Mining Company (LMC), which has seen its stock more than double since going public last year, not all industrial metals stocks have performed well. With that in mind, let’s look at some of the best stores to buy for investing in industrial metals and mining today.
Mechel PAO (MTL)
Many investors are surprised to learn that Russia is the world’s largest mining country in terms of output. However, while the country produces a lot of raw materials, it imports many industrial metals, including iron ore and coking coal. One of the best industrial metals stocks today is Mechel PAO, a Russian mining company that produces most of the country’s iron ore and coking coal. Mechel is the world’s largest coal producer, accounting for nearly 15% of global production, and the second largest iron ore producer with a 16% share of the worldwide market. With Russian demand for iron ore and coking coal expected to increase as the country’s economy grows, Mechel looks like a solid long-term investment.
Next up on our list of the best industrial metals stocks to buy is ArcelorMittal, the world’s largest steel producer. ArcelorMittal is a Luxembourg-based company that generates over $40 billion in annual revenue from mining and processing iron ore, coal, coking coal, and iron ore. ArcelorMittal is the world’s largest supplier of iron ore, accounting for 25% of global iron ore production. The company also ranks as the second largest coking coal producer, producing roughly 10% of the worldwide supply. While ArcelorMittal has been hit hard by rising iron ore prices, it remains one of the best industrial metals stocks to buy today due to its size and diversification. In addition to its iron ore and coal mines, ArcelorMittal owns many other assets, including a network of steel mills and iron ore pelletizing plants.
Steel Dynamics (STLD)
Next up on our list of the best industrial metals stocks to buy is Steel Dynamics, an Indiana-based steel producer. Steel Dynamics is one of the largest domestic steel producers, producing roughly 5 million tons of molten steel annually from facilities in Indiana, Texas, and Arkansas. In addition, steel Dynamics is the largest domestic producer of liquid steel, accounting for roughly 40% of the American liquid steel market. While Steel Dynamics produces only a tiny percentage of the world’s steel, it is one of the best industrial metals stocks to buy today due to its focus on the American market. While China is the world’s largest steel producer and was responsible for roughly 46% of global steel output in 2017, the U.S. produced only 32 million tons of steel during the same period. In other words, China has nearly six times as much steel as the U.S. per year and is expected to lead the global steel market in the coming years, making it a risky bet for investors.
Companhia Siderurgica Nacional (SID)
The last company on our list of the best industrial metals stocks to buy is Companhia Siderurgica Nacional, Brazil’s largest iron ore and pellets producer. Brazil, the world’s largest exporter of iron ore, produces roughly 40% of the global supply. And while state-run companies primarily control the country’s mining industry, SID is a privately owned mining company, one of the best industrial metals stocks to buy today. While SID is the third largest iron ore producer in Brazil, it is the largest company in the country that is privately owned. The company accounts for roughly 20% of the Brazilian iron ore market and owns two high-capacity iron ore pellets plants, one of which is the largest in the world.
Investing in industrial metals and mining stocks can be risky, but the rewards can be well worth the risk. Industrial metals, such as copper and nickel, are basic materials used in all types of manufacturing, from electronics to cars. Mining companies are resIn addition, mingling for extracting and refining these metals from the earth is a capital-intensive and risky business. With that in mind, investors should do their due diligence before investing in the industrial metals or mining industries. And while some of these stocks have been hit hard by the strong U.S. dollar and trade war fears, they remain solid long-term investments for risk-tolerant investors.