Recently, the Wall Street Journal published an article entitled "Steel Prices Shine, Lifting US Makers." In it, the author noted that an increase in sales of automobiles and equipment for the oil and gas industry have contributed to a 25% increase in steel prices in the last two months alone.

Regarding the US auto industry, shipments of steel, and strip and coiled plate steel [which are] used to make cars, rose nearly 12% in the first three quarters of 2011. Additionally, the Journal notes that over the past two years, US automakers have increased production by nearly 30%. As for the oil and gas markets, shipments of energy pipe were up 24.3% to 2.6 million tons in the first 10 months of 2011.

Overall, the article strikes a decidedly upbeat tone and generally suggests that, despite a few bleak spots such as nonresidential construction, demand for steel is on the rise thanks to an accelerating economic recovery in North America. This, the article says, is good for steel makers ArcelorMittal, Nucor and AK Steel Holding.

(Sourced from www.seekingalpha.com)