Despite several macro uncertainties, the metal industry’s long-term outlook looks promising, driven by strong demand for metal and metal-manufactured products. Moreover, an upsurge in urbanization, rapid industrialization, and several technological advancements in metal manufacturing should propel the industry’s expansion.
Amid the backdrop, investors could consider buying fundamentally sound metal stocks Rio Tinto Group (RIO – Get Rating), Valmont Industries, Inc. (VMI – Get Rating), and Ferroglobe PLC (GSM – Get Rating) now.
Despite lingering macroeconomic headwinds, the metal industry is poised to witness significant growth in the foreseeable years, driven by high demand for metal and metal-produced products from several end-use industries, including automotive, aviation, energy & power, construction, manufacturing, electrical & electronics, packaging, and others.
The Bipartisan Infrastructure Investment and Jobs Act, signed into law by President Joe Biden in November 2021, authorized $550 billion in new federal spending over the next five years for transportation and infrastructure to boost the economy.
Moreover, the rise in infrastructure development projects in the United States should sustain the demand for metals. Last year, the federal government spent a record $36.6 billion directly on infrastructure and transferred another $94.50 billion to states.
Furthermore, emerging economies such as China, India, and Brazil should continue boosting demand for steel and other metals in the upcoming years. Several factors contribute to continued metal demand in emerging markets, including population growth, rapid urbanization, and infrastructure development.
Like other industries, the metal manufacturing industry is also undergoing a digital transformation. With the use of Artificial Intelligence (AI), the Internet of Things (IoT), and automation, metal manufacturers experience improved efficiency and reduced costs.
As per a report by Allied Market Research, the global metal & metal manufactured products market is expected to reach $18.50 trillion by 2030, growing at a CAGR of 5.2%.
Given the industry’s promising prospects, quality metal stocks RIO, VMI, and GSM could be solid additions to your portfolio.
Let’s take a closer look at the fundamentals of these stocks…
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