Continuing our theme on alternative perspectives, shedding light on various base metal prices I had to chuckle when I stumbled upon this blog post. The author paints a rather stark picture, “For the past two years, unless you had scrap metal nailed down, locked up, dry walled in, or intruders fenced out, it was going to get stolen.” But what a difference a day, or a few weeks make.
The other interesting angle of that blog post discusses the prospects for some of the largest US steel producers. And the prognosis is not good. US Steel’s share price has dropped from a high of $196/share in June to $87 today. Nucor, according to the article has seen a 50% drop in its share price. Assuming you buy into the notion that a company’s current share price reflects its prospects, the real question to ask is how much lower these producers’ prices will go? Of course you may just be able to find out by reading the weekly police blotter.