Steel Could Be the Next Victim

With the recent unsettling of global markets, some say there is an overlooked casualty looming: steel and related stocks.

The price of steel has been steadily rising throughout the year, as oversupply is being continuously met by voracious demand from emerging economies, which are using the metal to build everything from new microwaves and washing machines to cars and trucks.

But any slight shift in demand from emerging markets could potentially affect the price of the commodity, says Jepp Papp, who helps manage $650 million for Oberweis Asset Management's China funds. "I would say it's definitely a margin story right now. If the 10% growth in China cools off to 9% or 8%, you could see prices come back down again." ...