An expected 2010 pickup in the critical construction sector should help spur at least a partial recovery for flat-rolled steel on the West Coast after this year's sharp downturn.

USS-Posco Industries (UPI) is looking for a turnaround in home starts to contribute to a pickup in sheet steel demand next year following what's expected to be a 35-percent drop in production this year from 2008 for the joint venture of U.S. Steel Corp., Pittsburgh, and Posco Ltd. of South Korea.

"From a demand point of view, we're going to see a little better year in sheet products," said Robert R. Smith, president of...