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Shares in U.S. steel producers could rally along with commodity: Barron's

Reuters logo Reuters 3/17/2019
a dirty pan on a stove top oven sitting in a dark room: FILE PHOTO: A steel coil is unrolled on the line at a steel mill in Pennsylvania© Reuters/AARON JOSEFCZYK FILE PHOTO: A steel coil is unrolled on the line at a steel mill in Pennsylvania

NEW YORK (Reuters) - Several U.S. steel company shares could rally along with a rise in the commodity's price, according to an article in Barron's that also urged caution on the stocks because of historical volatility.

The price of steel has climbed to $703 per net ton, and some analysts expect it to reach near $800 or above in the next year, according to Barron's.

The article pointed U.S. Steel Corp as the pick among big producers but urged investors to stick with a one-year time horizon and to watch steel and iron prices.

Commercial Metals Co and Steel Dynamics Inc were other inexpensive stocks that benefit from defensive positions as low-cost producers, according to the article.

(Reporting by Lewis Krauskopf; Editing by Cynthia Osterman)

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