Signs of optimism in steel are everywhere: Nucor (NYSE: NUE) recently called a bottom in steel and others like United States Steel (NYSE: X) have been restarting blast furnaces because of an uptick in demand. And the world's biggest steelmaker, ArcelorMittal, has a bullish outlook for global demand in 2010.

While the domestic steel industry is still operating well below full capacity, iron ore miner Cliffs Natural Resources has seen its customers recently increase steel production, resulting in improvement in orders and a lift in iron ore sales and production guidance for 2009. The company also sits on a strong balance sheet with nearly $275 million in cash and equivalents with a reasonable debt-to-equity ratio.

In Motley Fool CAPS, nearly 97% of the 1,082 members rating Cliffs Natural Resources are bullish.