What happened

Shares of Brazilian steelmaker Companhia Siderurgica Nacional (NYSE:SID) are starting the day of right Wednesday, rising 9.3% as of noon EDT.

Yet there doesn't seem to be any news specific to Companhia Siderurgica Nacional to explain the sudden spike.

Molten steel pouring in a foundry

SID shares are red hot today. Image source: Getty Images.

So what

What there is, however, may be nearly as good. This morning, investment bank Credit Suisse made a broad statement of optimism about global steel demand in general, raising its forecasts for steel demand by 7% for next year.  

Credit Suisse is even more optimistic about demand for steel input iron ore than for steel itself, predicting ore prices will rise between 17% and 30% over the next three years, according to Barron's. But this could be doubly good news for industrial giant Companhia Siderurgica Nacional, which sells a lot of steel ($3.5 billion worth last year) and also a lot of iron ore with which to make the steel ($2.5 billion, according to data from S&P Global Market Intelligence).

Now what

Credit Suisse ended its note upgrading only shares of iron ore miner BHP Group. But given that BHP produces iron in Brazil (among other places), and that Companhia Siderurgica Nacional produces both iron and steel in that same location, it stands to reason that what's good for BHP could be good for Companhia Siderurgica Nacional as well.

And least, that seems to be what investors are thinking today.