$ARCELORMITTAL(AMSYF.US)$
In Europe we are having a massive energy crisis due to high natural gas prices since the beginning of this month, due to which Oil & Gas companies are having a rally.
Natural Gas is the main component to the production of steel (def. in EU). With a rise in the input (gas price), I would expect a an increase in operating costs of the steel producer, which should mean decrease in margins, reduction of profitability and an eventual decrease in steel price. Moreover there is a decrease in steel demand from China, which should bolster a downward trend of Arcelor Mittal stock.
Could you guys explain this trend of steel prices following natural gas price?