US steel mills have begun making enquiries for third-quarter deliveries of ferroalloys but few traders are optimistic that current low prices for most products will rise. "I wish I could say things are turning around," said one trader. "But I can't and I don't know when I'll be able to."Steel production is down by one-fifth on last year and a series of Chapter 11 bankruptcies have brought higher inventories, lower prices, unpaid bills and lower margins to the industry. In the week ended June 16, US steel production was 1.4 percent higher than the previous week, but mills are still running at 77 percent of capacity compared with over 90 percent last year, according to the American Iron Steel Institute.
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