Whyalla locals welcome more certainty about the future ownership of the city's steelworks, but say it is still not enough to warrant business investment and workers coming back to the Spencer Gulf.

The federal and state governments have reduced the number of bidders for the financially stricken Whyalla steelworks from five to two.

BlueScope Steel can still use its rights to match a final bid, but Matt Latimore’s M Resources and India’s Jindal Steel are the frontrunners for the steelworks.