Where are steel prices headed?

Ii predicted steel prices to be higher in the beginning of 2008. That steel prices are likely to increase by 15-20% in 2008.

The demand in 2008 would be seen around 2007 levels. The higher steel prices may not be margin neutral. The steel demand in US is likely to go up on lower inventory. steel buying in Europe also, because of lower inventory. China is unlikely to be a big steel exporter in the future. The growing Indian demand can be met by brownfield expansion. The demand is likely to increase by 0.5 billion tonne by 2011-2012.

The iron ore prices to be up 30-50%. The current landed cost of hot rolled coil is at USD 700/tonne. it seems around 30-50% rise in long-term prices in 2008.