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Overall, it is likely that steel prices globally will not remain at their current high levels going forward into 2007.
Environmental Concerns - The US government has introduced legislation to regulate steel mill emissions; the resulting costs in terms of compliance have detracted from margins.
Input Costs - Global iron ore prices have doubled over the last few years, pressurizing profit margins for integrated steel producers. The high (if recently stabilizing) price of crude oil has driven up transportation costs, so detracting from income.
Cost Cutting - Companies' margins have benefited from industry-wide efforts to increase efficiency by concentrating capital investment into modern, automated plants and energy saving production techniques, reducing production costs in the long term...
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