But workers on the site of the blast furnace, which has undergone a successful $372 million reline, portray a more positive picture.

Several BlueScope workers confirmed to the Mercury the furnace was being prepared for the possibility of a start-up from mid August onwards and report an increase in activity at the steelworks.

"The No 6 furnace, which at one point was stopping every couple of days, has been running steadily," one source said.

"Things are also starting to improve in the hot strip mill where there's been less stops, which indicates they're getting more orders."

The restart would be a four-to-six week process costing about $20 million.

Officially, BlueScope says it is not expecting to announce a decision to restart the furnace before August 17, when it reveals its financial year results.

A spokesman has played down the likelihood of an August start.

But in recent months there has been an improvement in global steel demand and pricing trends, led by a resumed appetite in China.

BlueScope management will be closely watching the international market in coming weeks, in particular whether the increase in demand translates into extra orders.

Due of its stock market responsibilities, the company always remains tight-lipped about any major announcements or changes likely to affect its business levels.