'A bit frothy'Phil Gibbs, director of metals equity research at KeyBanc Capital Markets, agreed that steel prices are at unsustainable levels. Gibbs said he is "more confident the steel price is in a bubble," rather than that steel stocks themselves are in a bubble. History shows that steel stocks "tend to peak" a month or so before steel prices, Tanners wrote in her report. Another risk is whether tougher environmental regulations in China will limit steel supply there. If the Biden administration rolls back even just some of those tariffs, it would ease supply constraints and weigh on steel prices.

Source: CNN May 06, 2021 18:11 UTC