The Global steel prices are set to crash in coming months due to very clear indications of a drop in demand across the globe. Olympics is coming to an end next week in China and with high inflation to grapple with China’s demand for steel is set to crash by a big margin from October 2008.

The demand in US and Europe is also set to come down at least from 2009 beginning since the housing meltdown will have its long term impact. The demand in these markets might take at least six to eight quarters before turning around.