VanEck Vectors Steel ETF - 01/31/24

Chart of the Day: (01/31/24)

VanEck Steel ETF 

(SLX, NYSE ) 

Watch List

• SLX tracks the New York Stock Exchange Arca Steel Index (STEEL), which is intended to track the overall performance of companies involved in the steel sector.

• China’s steel industry reportedly saw an unprecedented 15% drop in production in Dec, leading to barely any change in 2023 output.

• While JSW Steel, India’s largest steel mill, anticipates 8-10% medium-term growth in steel demand driven by robust economic growth. They forecast a 15% production expansion in the current fiscal year.

• In the US, pre-election spending and a focus on infrastructure is expected to remain key demand drivers in fiscal 2024.

• Steel is used in all major infrastructure projects and is the only metal used in every form of energy production on earth. 

• SLX has moved out of a three-year base and is currently retesting that breakout level. In the ever-entertaining recession debate, it is difficult to envision a very hard landing for the US economy if this chart can maintain the $70 level and work its way higher.

• Our Chart of the Day is intended to be a standalone technical chart. 

• We use them to highlight open positions, stocks on our watch list, or indicators that we believe are important, or just interesting at the time. 

• It is not a directional market call.