US Steel Corp the largest US steelmaker by volume, rose the most in 11 months after Deutsche Bank AG said that demand and prices for the metal will rise.

Analysts including Mr David Martin and Mr Jorge Beristain in a research note wrote that steel producers in the US will benefit as Chinese inventories empty and industrial activity picks up in the second half of 2011.

They said that “We are adopting a more positive view on the steel equities. Some of our prior concerns slowing seasonal demand, lower input costs, and additional supply have moderated.”

Deutsche Bank raised its ratings on Pittsburgh based US Steel and AK Steel Holding Corp to buy from hold.

Deutsche Bank raised its forecast for benchmark hot rolled coil prices by 1 percent to an average USD 830 a ton in 2011 and USD 772 a ton in 2012. Steel prices have fallen since March amid limping recovery in US construction and manufacturing and disruptions in the automotive supply chain after the earthquake and tsunami in Japan.

(Sourced from Bloomberg)