Ahead Of The Bell: Steel Sector

HARTFORD, Conn. (AP) — The recession-battered steel industry is expected to begin a gradual recovery as plants ramp up production, an analyst said as she established a "Buy" rating for several companies.

"We believe the market is currently pricing in a strong recovery in steel volumes," analyst Dana Guido of Merriman Curhan Ford said in a note to investors late Thursday.

Capacity utilization at steel minimills should increase to 60 percent in the third quarter, to 70 percent in the fourth quarter and to 80 percent next year, she said. And Guido said she expects consolidation in the iron ore market will "continue to provide pricing power" with international prices rising 10 percent in 2010. ...