Analysts: Steel is a steal

Analysts are picking good investment opportunities in some Chinese steel makers after oversupply and falling prices drove share prices 38% down from their March 2005 peaks, the Wall Street Journal reported. Given low valuations of four to nine times 2006 earnings estimates, strong prospects of consolidation in the fragmented sector and higher-grade products in some steel makers, analysts say investors should consider investing in promising companies such as Baoshan Iron & Steel, Angang New Steel and China Special Steel Holdings.