Savvy Trades and Investments

[nelson1234]

Steel I'm not sure. I mean they don't mine steel, they buy it at whatever the going rate is. So sure, they benefit when steel prices are rising since since their inventory value inceases with rising prices of steel. If prices aren't sticky, they can increase their product pricing using inventory they bought cheaper. And perhaps some of that percent pricing increase may also be enuf to help expand margins overall.

But they are not miners who would get the full benefit since their input costs arent effected by rising steel prices and thus they get the full benefit of inflationary effects.

Anyway, I'm no expert, but thats the way I see it. Could be wrong.