The steel industry is continuing to prosper worldwide. I have touched on Brazil's VALE S.A. inn an earlier post and I still like this company to produce solid profits this year. A rival in Brazil, Rio Tinto is also traded here in the U.S. but does not seem to carry the same amount of under value as VALE.
However, Rio Tinto is the worlds 2nd largest Iron ore mining house in the world and hopes to hit an output of 240 million tonnes this year. With commodity prices rising to over $170 per tonne for Iron, low side that would mean revenue of over 40 billion compared to that of 39 billion last year. Granted those numbers are gross are do not take into account the spending on expansion in Australia to help increase output for the next few years. More on this here.
Either way, these two mining conglomerates should stay on your radar as both are trading below where they should be.
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