3 Industrial Stocks That Have Investors Hooked

3 Industrial Stocks That Have Investors Hooked

Posted On August 11, 2023 9:55 am

Metals and minerals demand is anticipated to surge significantly in the foreseeable years, thanks to increased urbanization, rising infrastructure development, and clean energy transition worldwide. Furthermore, adopting digital technologies across the value chain, from operations to procurement to sales, should boost the industrial metals sector’s prospects.

Given the industry’s tailwinds, fundamental sound industrial stocks BHP Group Limited (BHP – Get Rating), Southern Copper Corporation (SCCO – Get Rating), and Marubeni Corporation (MARUY – Get Rating) could be ideal additions to your portfolio for solid returns.

Demand for metals and minerals is expected to rise considerably this year and beyond, driven by sustained industrial production. Production at U.S. factories rebounded at a 1.5% annualized rate in the second quarter after dropping at a 0.2% pace in the January-March period.

Furthermore, favorable government initiatives and funding for infrastructure and transportation development projects should create numerous growth opportunities for the prominent players in the industrial metals market.

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, covering everything from bridges and roads to the country’s public transit, broadband, water, and energy systems.

Demand for industrial metals is expected to surge in the coming years as the energy transition is in full force worldwide. As per the Energy Transitions Commission (ETC), the energy transition would require the production of up to 6.5 billion tonnes of materials cumulatively between 2022 and 2050, with steel, copper, and aluminum accounting for 95%.

In addition, digital transformation is accelerating across the metals and mining sector, and companies have an unprecedented opportunity to capitalize on this momentum. By integrating emerging technologies, including cloud, AI, robotics, and big data, industry players could boost throughput, simplify operations, reduce costs, and lower supply chain complexity.

According to a report by Market Research Future, the base metals mining market is…

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