Eric Bolling is Iron Man

The fast money crowd is always looking for action, and Eric Bolling is often in the thick of it.

And while Dennis Gartman has taken some commodity positions off of his sheets, Bolling is still ferreting out some ways to make money, assuming the trends in place remain friendly. Eric went Bolling for Dollars with Peter Barnes today, and seems inflexible in his posture on steel:

Bolling: Let’s start with oil. We’ve just touched the $121 price that we almost touched yesterday. That’s on the heels of the news this morning that Nigerian rebels are bombing the pipeline yet again. That goes on all the time, Peter, and we know that so that oil will probably come on later in the week, Exxon/Mobil says. Shell also says they have may some outages as well. So you combine that with the Iranians basically renewing their commitment to enriching uranium. Think about this for a second. The Iranians need uranium for nuclear power. Yet they’re sitting on some of the world’s biggest deposits of fossil fuels. They don’t really need this, they’re clearly using this to develop a bomb. So I think that’s very smart that we continue to threaten sanctions against Iran. So those two news pieces brought oil to $121 bucks.

Barnes: Geopolitical risk. What’s hot?

Bolling: Steel is hot - hot rolled steel. Steel prices are up 14% versus last year. The way steel works, they pick a price right around this time of year, it goes retroactive to the beginning of the year. But the point is last year’s steel prices were up 17%. This year they’re up 14%. And they’ve raised prices twice that this year so far.

Steel is strong because China and India continue to grow. They continue to demand steel for the cars, for the buildings, for the roads. Turn around and find out who is making money in the steel industry. U.S. Steel made an all-time high yesterday. The market’s kind of flat but Mittal, AK Steel, all the steel companies have made all-time highs within the last couple weeks because there is huge demand for steel.

Like those companies, but I don’t want to put a dime of money in these companies because my favorite company of all time that I’ve been talking about for a long time is Rio. R-I-O. The real name for the company is Companhia Vale do Rio Doce. It’s a Brazilian company. What they do is they bring iron ore out of the ground in pellets and they go and sell these pellets to different steel companies around the world and they make steel.

Did you know that Rio is $195 billion miner, the third largest miner in the world?

They mine 20% of the world’s iron ore pellets. This is a company that turned around a 25% return in 2008. 100% return in 2007, and it’s up about 25% in 2008. Keep your eye on Rio

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