SLX: Steel Tailwinds Galore (Archive)

This 5-Minute Pitch was originally published on Seeking Alpha before the launch of the Hunting Alphas website. It is shared here to showcase my previous work and track record. New 5-Minute Pitches published on this site will not be disseminated anywhere else.

Elevator Pitch

• Drawing upon my previous analysis of China, India, US infrastructure, and the Russia- Ukraine war, I now form a bullish view of the SLX steel ETF.
• Supply tailwinds for the global steel industry include subdued Chinese production and persisting supply-side shocks from the Russia-Ukraine war.
• Demand tailwinds for the global steel industry include a rebound in Chinese demand, an uptick in Indian construction activity, and rising US demand driven by the Infrastructure Investment and Jobs Act.
• Some incremental supply expansions are beneficial for some components of the SLX ETF, but too much supply-side expansion can spell a downturn in the steel sector, making this a key monitorable.
• Technical analysis also suggests bullishness, and I anticipate SLX to outperform the S&P 500.

Read the full article here.