Long ago, the threat of a labor strike from U.S. Steel (NYSE:X) would have sent jitters across Wall Street and provoked a response from the White House. Steel was a symbol of America's industrial greatness. Of course, the industry hit its peak and eroded -- year after year. For U.S. steel companies, protectionism and bankruptcies became the norm.

But the industry has gotten some shine back and is, interestingly enough, looking like a growth sector again. This week, the Fool's Rich Smith took a look at the industry, highlighting the stock gains of AK Steel (NYSE:AKS), International Steel Group (NYSE:ISG), Nucor (NYSE:NUE), and even U.S. Steel.

Another beneficiary is Schnitzer Steel Industries (NASDAQ:SCHN), which reported its earnings yesterday. The stock surged $1.89 to $34.65.

Schnitzer Steel is a recycler of ferrous metals and a manufacturer of finished steel products. The company has an annual production capacity of 700,000 tons of finished steel products.

For the past quarter, Schnitzer Steel posted revenues of $204.5 million, which compares to $153.6 million for the same period a year ago. Profits came to $37.9 million, up from $16.9 million.

The company also upped its guidance for the next quarter. Net income is expected to be $62 million to $68 million.

No doubt, the world is undergoing tremendous demand for steel, especially from voracious China. But Schnitzer Steel is doing more than just selling steel at higher prices. The company has a top management team and has struck key joint ventures to boost growth.

Also, in May, Schnitzer Steel retained Bear Stearns to look at the possible sale of the steel manufacturing business. This would better focus the company. And, with better pricing in the industry, Schnitzer Steel should get a healthy premium for the division -- freeing up capital to propel even more growth.

Fool contributor Tom Taulli does not own the shares mentioned in this article.