Why Analysts Will Remain Bullish on Steel (MTL, X)

NEW YORK (TheStreet) -- Analysts could be bullish on steel stocks for the remainder of 2010 because of demand concerns and the offsetting effect of bargaining opportunities.

The key triggers for steel stock ratings changes during the second half will be data provided by American Iron and Steel Institute (AISI) regarding capacity utilization and production at U.S. steel mills, second-quarter earnings of steel companies and economic data from the U.S.

During the first half, Mechel (NYSE: MTL) and U.S. Steel (NYSE: X) led the pack of steel stocks receiving improved ratings. Analysts favored steel producers with captive raw materials, in view of the hike in iron ore prices during the second quarter.

To read the rest of this story, click here.