Steel yourselves: base metals are looking up

ArcelorMittal reported better results than expected. The first quarter loss was $250 million compared to $345 million last year.  The company is now expecting steel demand to rise to 2%-3% this year. They had been expecting a 1.5%-2.5% only a couple of months ago.   At the same time iron ore prices have fallen to a 20-month low of $102.80 a tonne.  Are we seeing a favorable conjunction with price and volume leverage going forward?  Is the economy approaching escape velocity?