Fundamentals for the US steel industry remain strong with domestic mills enjoying a high capacity utilization rate, healthy lead times and strong demand for CRC and HDG steel. Import data continues to trend lower with the countries that had been major players being pushed to the sideline or kicked out entirely. Economic data continues at a moderate pace with strong auto sales, an improving ISM and impressive construction data all positive for steel demand. Oil prices have rebounded to $50/bbl while the rig count increased for the second consecutive week along with production. A continued increase in WTI crude could result in an upside demand shock for pipe and tube products. This upside risk is asymmetric as the pipe and tube market has already adjusted lower oil prices seen in the past 12 months and rig counts at their lows. A serious domestic supply disruption is another area of concern for upside price risk.