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Chinese Steel Stocks Back in Favor as Nation Looks to Clean Air

Winnie Zhu
Chinese Steel Stocks Back in Favor as Nation Looks to Clean Air

Chinese steel stocks are back in vogue, as the nation’s push for clean air and new infrastructure offsets worries about a supply glut. Bolstered by prices near a seven-year high, heavyweights Baoshan Iron & Steel Co. and Angang Steel Co. are among Goldman Sachs Group Inc.’s favorite basic materials stocks, the bank said in a note earlier this month. Both posted solid growth in earnings this week, and are likely to see the uplift continue on strong steel demand through the rest of the year, according to Bloomberg Intelligence analyst Yi Zhu.