ETF Trends
07-30-2008, 03:30 PM
ETF Trends - Keeping a Grip on Exchange Traded Funds (ETFs)
http://www.etftrends.com/wp-content/uploads/2008/07/2644271849_68a8329bde-300x199.jpgThe steel exchange traded fund (ETF) has been showing strength that’s typical of the metal, after two major players in the industry reported big earnings.
U.S. Steel Corp. (X (http://finance.yahoo.com/q?s=X))gained 14% in trading yesterday after reporting a second-quarter profit that more than doubled, which was its best gain since 2002, reports Eric Martin for Bloomberg (http://www.bloomberg.com/apps/news?pid=20601087&sid=aDWQvPZHmY.Y&refer=home). The company is the second-largest U.S.-based steelmaker in terms of market value. Their per-share profit handily beat the average analyst estimate.
U.S. Steel also expects the growth to keep coming in the third quarter. Price increases in the three segments of the company - flat-rolled, European operations and tubular - outpaced the increase in the cost of raw materials. Shipments also hit record levels, according to the Associated Press (http://www.nytimes.com/2008/07/30/business/30steel.html?ref=business).
This morning, ArcelorMittal SA (MT.AS (http://finance.yahoo.com/q?s=MT.AS)) followed up with a similar report that its own profit had more than doubled, reports Aoife White for the Associated Press (http://biz.yahoo.com/ap/080730/luxembourg_earns_arcelormittal.html). The world’s largest steelmaker increased prices to offset higher costs for energy and iron ore.
Rio Tinto (RTP (http://finance.yahoo.com/q?s=rtp)), meanwhile, said it will pour $2.2 billion into an expansion o fits iron ore mine in Brazil to help meet the demand throughout South America and the Middle East, the Associated Press reports (http://biz.yahoo.com/ap/080730/australia_rio_tinto.html?.v=1). Iron ore is a key ingredient in steel production.
Will the global demand for steel keep up the pace? ArcelorMittal predicts growth of 3% to 5% a year in the medium term, which is down from 7% in recent years.
According to the World Coal Institute (http://www.worldcoal.org/pages/content/index.asp?PageID=189), China is the top steel producer, and accounted for 34% of production in 2006. China is also the world’s top consumer of steel.
Market Vectors Steel (SLX (http://finance.yahoo.com/q?s=slx)) holds U.S. Steel at 5%, 13.4% of ArcelorMittal and 13.7% of Rio Tinto. The fund is 2.4% below its trend line.
http://www.etftrends.com/wp-content/uploads/2008/07/z132.png
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/350722593/solid-steelmaker-earnings-build-up-etf.html)
http://www.etftrends.com/wp-content/uploads/2008/07/2644271849_68a8329bde-300x199.jpgThe steel exchange traded fund (ETF) has been showing strength that’s typical of the metal, after two major players in the industry reported big earnings.
U.S. Steel Corp. (X (http://finance.yahoo.com/q?s=X))gained 14% in trading yesterday after reporting a second-quarter profit that more than doubled, which was its best gain since 2002, reports Eric Martin for Bloomberg (http://www.bloomberg.com/apps/news?pid=20601087&sid=aDWQvPZHmY.Y&refer=home). The company is the second-largest U.S.-based steelmaker in terms of market value. Their per-share profit handily beat the average analyst estimate.
U.S. Steel also expects the growth to keep coming in the third quarter. Price increases in the three segments of the company - flat-rolled, European operations and tubular - outpaced the increase in the cost of raw materials. Shipments also hit record levels, according to the Associated Press (http://www.nytimes.com/2008/07/30/business/30steel.html?ref=business).
This morning, ArcelorMittal SA (MT.AS (http://finance.yahoo.com/q?s=MT.AS)) followed up with a similar report that its own profit had more than doubled, reports Aoife White for the Associated Press (http://biz.yahoo.com/ap/080730/luxembourg_earns_arcelormittal.html). The world’s largest steelmaker increased prices to offset higher costs for energy and iron ore.
Rio Tinto (RTP (http://finance.yahoo.com/q?s=rtp)), meanwhile, said it will pour $2.2 billion into an expansion o fits iron ore mine in Brazil to help meet the demand throughout South America and the Middle East, the Associated Press reports (http://biz.yahoo.com/ap/080730/australia_rio_tinto.html?.v=1). Iron ore is a key ingredient in steel production.
Will the global demand for steel keep up the pace? ArcelorMittal predicts growth of 3% to 5% a year in the medium term, which is down from 7% in recent years.
According to the World Coal Institute (http://www.worldcoal.org/pages/content/index.asp?PageID=189), China is the top steel producer, and accounted for 34% of production in 2006. China is also the world’s top consumer of steel.
Market Vectors Steel (SLX (http://finance.yahoo.com/q?s=slx)) holds U.S. Steel at 5%, 13.4% of ArcelorMittal and 13.7% of Rio Tinto. The fund is 2.4% below its trend line.
http://www.etftrends.com/wp-content/uploads/2008/07/z132.png
complete story here... (http://feeds.feedburner.com/~r/etftrends-feed/~3/350722593/solid-steelmaker-earnings-build-up-etf.html)