U.S. Steel Bonds Rebound

Company gets a boost from the recovery in vehicle sales.

U.S. Steel Corp., the nation’s biggest producer of the metal by volume, is making a comeback in debt markets as vehicle sales recover, fueling a surge in its bond prices from a record low.

The Pittsburgh-based steelmaker’s benchmark debenture has climbed above 100 cents on the dollar, or par, for the first time since August after plunging to 87.75 cents on Oct. 5, the lowest since the debt was sold in March 2010. Credit-default swaps on the company are trading at an almost five-month low.

Hot-Rolled Coil

The average annual capacity utilization of U.S. steelmakers climbed to 75 percent in 2011 from 51 percent in 2009, the year steelmakers idled 30 percent of their capacity after the housing crisis and global financial meltdown.

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