Investors are betting that steel stocks will benefit in the next four years as the next president, whether Trump or Clinton, have committed to spending much more on infrastructure projects including bridges and highways.
The outlook for steelmakers looks positive as both administrations are endorsing continued protectionism. The US DOC is investigating claims against Vietnam, has established tariffs against Chinese steel, and is investigating additional claims on imports from other countries. Additionally, the US is addressing other steel related grievances against China through the World Trade Organization.
The stock market is clearly optimistic about the steel industry. US Steel and AK Steel stock have surged nearly 160 percent this year, and are up this week despite lower than expected earnings. Profits for US Steel are expected to rise 8 percent a year for the next few years. ArcelorMittal stock has nearly doubled this year -- even after factoring in a 7 percent drop Tuesday after it too reported weaker than expected earnings and lowered its outlook. Nucor and Steel Dynamics have also been liked in Wall Street this year, gaining nearly 30 percent and 60 percent, respectively.