Steel demand ready to rebound?

Recently many signs point to a chance of a recovery in the steel industry. Chinese demand drives iron ore prices upwards, however, there are reservations wrt to sustainability of this demand. Capacity utilization in steel industry grew in 2009 compared to 2008 and steel production shows an upward trend in the recent months according to World Steel Association (see graph below).





Financial institutions seem starting to belive in the demand rebound. Some outlooks for steel stocks change to "buy". Even in uncertain markets such as Russia and Ukraine there are signs of newly emerging trust. Recently Mechel, Russian steel producing company, received 3-year extension on its USD 512 m credit facility from VTB Bank. Ukrainian Ferrexpo received pre-export financing facility of USD 230 m with Deutsche Bang AG as coordinator.

Accoring to Eurometal Newsletter , however, Western European steel production contracted more in percentage than say in CIS, does that mean that rebound in demand will bring redistribution in market shares? And is steel demand to grow steadily hereafter anyway or is it just a short-term trend driven by Chinese economic recovery package?

Source: Ivan Poltavets for FT Alphaville LongRoom