This is the bottom for steel stocks - you should be buying not selling. Through the 90s the industry was depressed courtesy low cost steel from poland and the ukraine. That excess supply has been taken out of the Market. The input costs (iron ore, energy) have doubled, so they pass the costs on directly. NO one in this industry has long term contracts. Therefore, they will all have to price these ongoing cost increases into their jobs. If you work in fabricating, which I do, there is a 10 day window to quote all jobs and you put that in your quote- you get a p.o and place your steel order asap otherwise the price goes up and they do not guarantee your price past 10 days. All the fundamentals aside- do you want to bet against a guy (Heebner or Gendell) who owns $500 million in US Steel stock (Gendell in this case) or Heebner, who has made 40% a year for the last 5 years in a multi billion dollar mutual fund (CGM Focus)? You could argue the steel stocks were overbought in May (which I did), and that was true until yesterday. Now they are a screaming buy. In short - its called inflation.