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New York, NY – Shares of U.S. steel companies rose as an analyst said distributors of the metal were poised to benefit from an eventual uptick in demand.
Steel Demand to Rise- 6/1/2009
In a note to investors, Jefferies & Co. analyst Yvonne Varano wrote that steel service centers should benefit as inventories decline and the broader economy improves, triggering new orders for the metal.
"We would recommend investors have exposure to the metal service center industry in anticipation of demand improvement as inventory destocking abates and the broader economy begins to recover," Varano wrote. "We expect to see a leveling off of (steel) prices in the coming months as demand firms and service centers are not so anxious to purge higher priced inventory."
Read the full story at forbes.com.