Published on 31 Oct 2023 on Insider Monkey via Yahoo Finance
12 Best Metal Stocks To Invest In
In this piece, we will take a look at the 12 best metals stocks to invest in. If you want to skip our introduction to the metals industry and the determinants of its performance, then you can skip ahead to 5 Best Metals Stocks To Invest In.
The metal industry is the backbone of the global economy. And conversely, the global economy is also a key determinant of the industry's performance. This is because the biggest users of metals are industries, which rely on them to build heavy duty industrial products such as jet engines, excavators, and crawlers. Industries are joined by the construction industry which is one of the biggest users of steel in the world. While steel is not directly a metal, it relies on iron since the material is actually a compound that mixes carbon and iron to increase durability and strength.
Naturally, metal stocks fluctuate with global investor sentiment about the economy. Robust economic output means that there is more construction and greater industrial activity which leads to greater demand for metals and more revenue for the firms. In 2023, the key question on metal investors' minds is the outlook for China. China is one of the biggest infrastructure spenders in the world, and its Belt and Road initiative is a maze of roads that seeks to connect countries together and help maintain Chinese industrial output. This year, the metal industry has slowed down due to turmoil in the Chinese construction sector. Data shows that the Chinese property segment accounts for a whopping 20% of global steel demand, 18% of aluminum demand, and 6% of copper demand.