Nucor CorpAI infrastructure demand drives need for steel, benefiting Nucor as a top holding in the steel ETF.
The VanEck Steel ETF reached a new 52-week high earlier this month, driven by surging demand for steel in artificial intelligence infrastructure. The fund returned an average of 47.2% annually in 2025 and attracted $81.41 million in inflows over the past year, pushing assets under management above $203 million. AI data centers require heavy structural steel for server racks, reinforced flooring, and cooling systems, with 831 data center projects under construction globally as of March 2026. Despite a 0.3% year-over-year drop in global crude steel production in May 2026 and projected excess capacity of 745 million tons by 2028, the fund's top holdings like Nucor and Steel Dynamics operate modern electric arc furnaces that can adjust output while commanding premium prices for AI-grade steel. Near-term quantitative models assign a 65% probability of SLX outperforming the broader ETF universe, though risks include easing trade tariffs or a slowdown in AI capital spending.
Nucor CorpAI infrastructure demand drives need for steel, benefiting Nucor as a top holding in the steel ETF.
Steel Dynamics IncAI infrastructure demand drives need for steel, benefiting Steel Dynamics as a top holding in the steel ETF.