The European steel sector is expected to benefit from the European Union's revised steel safeguard measures, as country-specific import quotas should create a more orderly market than previously feared, Deutsche Bank Research analysts say in a note. The new rules are expected to reduce low-cost imports, strengthen the position of established trading partners and provide greater support for steel prices and producers' profit margins, the analysts say. Although demand remains subdued and prices have softened during the seasonal summer slowdown, the analysts expect both to recover as inventories decline and demand improves later in the year. Deutsche Bank favors companies with strong exposure to a recovery in regional prices and expects the tighter import regime to improve industry profitability over the medium term, the analysts add. (nina.kienle@wsj.com)