While the stainless steel industry continues to suffer from weak worldwide economies, excess capacity and unfavorable cost structures, among other factors, the situation might not be as dire as some people make it out to be, according to one industry analyst.

Christopher Plummer, managing director of Metal Strategies Inc., West Chester, Pa., said there were some variables in place that pointed to business having the chance to be better for those in the stainless industry.

Plummer pointed to mortgage-refinancing gains; a market poised to start seeing improved capital spending; a government spending spree; the potential for further economic stimulus from President Bush's expected tax cut; and sharply reduced oil prices.