Stock Picker: Steel Demand and Momentum Are Strong
American steel demand is high and the momentum is strong, according to Mark Parr, managing director at KeyBanc Capital Markets.
"What we've seen happening with steel so far this year is somewhat of a sawtooth recovery. Pricing has been moving fairly strongly," Parr told CNBC.
He said there is a "20 percent year-to-date volume recovery at the service center level," however, the stocks have not yet participated because the market "is still looking for earnings to recover."
With many contracts in "lag affect," those companies won't show their true gains until second-quarter earnings are reported.
"We still have a positive basis overall, we think the value proposition is very much intact here," Parr said.
Parr's Top Steel Picks:
-AK Steel Holding
-Worthington Industries
-GrafTech Intl.
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Disclosures:
Mark Parr owns no shares in the companies mentioned above.
