Buy US Steel Corp. (X) on Continuing Global Steel Demand Growth

Risaburo Nezu, chairman of the OECD steel committee told, "Global steel demand growth continues to be led by emerging economies to meet the requirements of expanding industrial sectors and infrastructure growth. Demand in many mature economies has slowed in line with weaker economic activity".

The OECD’s steel committee consists of industry and government officials from countries that together account for 81% of the world’s steel exports.

And according to Nezu, steel use continues to grow most rapidly in the so-called “BRIC” economies of Brazil, Russia, India, and China. In 2007, steel use rose:

• 18.6% in Brazil
• 13.5% in Russia
• 11.3% in India
• 13% in China

All told, those four countries found uses for 521 metric tons of steel, with China accounting for 78% of that total. Demand in Africa and the Middle East has surged, as well.

Analyst Aldo Mazzaferro sees a near-term opportunity and boosted his price target on U.S. Steel to $228 per share from $210. He also hiked his earnings estimates for the second half of 2008, along with 2009 and 2010.

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