NLMK, Severstal: Skyrocketing iron ore prices benefit vertically integrated steelmakers
smartmoney.oneSeverstal and NLMK should benefit most in this scenario. Both companies are in close geographic proximity to important export markets.Investors may also consider Evraz and MMK as an attractive investment.
However, MMK is dependent on external suppliers for raw materials making them more attractive only after prices for iron ore begin to decline.On Monday, December 12th iron ore prices rose 7.8% reaching $176.9/t – their highest since 2011 due to robust demand in China and concerns about supply from Brazil.Rainy season in Australia overlapped with news of a fatal landslide at Vale mine in Brazil last week.