It is reported that steel sector shares in US rose after Deutsche Bank's predicted that prices may be on the rise.

Deutsche Bank's Mr David Martin upgraded AK Steel Holding Corp and US Steel Corp to "Buy" from "Hold," mainly as a result of their current share prices, but also based on expectations that steel prices are nearing their bottom and are poised for growth.

Mr Martin said that some of his previous concerns such as slowing seasonal demand, lower input costs and additional supply, have lessened.

Mr Martin wrote in a note to investors “Supply and economic growth remain as major issues, but we now see the market as overly negative. We expect marginal costs including scrap, production discipline, renewed consumer interest and improved industry activity to aid steel prices in the second half of the year.”

In addition, there appears to be more support globally for higher steel prices, including in China where it appears inventories and prices may be near their bottom, the analyst said.

(Sourced from AP)