PowerShares Global Steel Portfolio (NasdaqGM: PSTL) is another ETF for the sector – it holds only $2 million in assets.
Stainless steel is the worst-performing commodity in the third quarter with a 12% loss. “The usual culprit — slowing growth and excess supply in China,” Investor’s Business Daily reports.
“As long as China, with nearly half of the world’s steel production, is hovering at cost, the rest of the world will struggle to push beyond those levels. Furthermore, weakening end-market demand in China has led to falling steel production there, which led to falling raw material prices, which only pushed finished steel prices lower,” said Paul Robinson, senior economist at market research firm IHS, in the article.
Market Vectors Steel ETF
