(SyndicateMyNews) - In a report issued Friday, rating agency Standard & Poor's said the US metals and mining sector could see the light ahead as its outlook showed signs of improvement.

S&P said of the 20 speculative-grade mining companies the rating agency tracks, all of them 'remain negative', but of the 50 investment-grade mining companies only half remain negative.

"Domestic demand for most metals remains very low, and the entire supply chain continues to conserve cash by reducing inventory, orders, and production levels," said Standard & Poor's credit analyst Michael Scerbo. "But demand seems to have hit a floor in recent weeks. Some companies have indicated that end users and service centers, now holding very low inventories, have begun to increase orders," he continued.