Steel ETF SLX Gaining Strength

| About: VanEck Vectors (SLX)

It appears as if the import inventory glut may be over with the Market Vectors Steel Exchange Traded Fund (NYSEARCA:SLX) showing big gains last week. Joanne Von Alroth of Investor's Business Daily reported AK Steel Holding (NYSE:AKS) had a projected earnings and sales rise of 5% in 2007, based on current global demand. There was an 11% overall industry surge, while the fund closed higher on news the industry in general is showing strength.

The biggest weightings for SLX are Companhia Vale do Rio Doce (NYSE:RIO), a Brazilian-based mining company with 14.28% of the fund's investment. Rio Tinto (RTP) makes up 13.16% and Mittal Steel (NYSE:MT), a Netherland's steel company, holds 7.22%. The emerging markets such as China and India will keep the demand for steel strong, but this fund isn't for conservative growth-oriented investing, it's more volatile than broad-based funds.

SLX 3-month chart:

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