From January through August 2008, the price of steel per ton climbed from $787 to $1,152 - a 46% increase in just 8 months. According to the American Institute of Steel Construction, that is the largest increase ever seen. To put it in perspective, in late 2003 the price of steel was $308/ton. At the end of 2004, the price was $518 ton. At the end of 2005, the price was $610/ton and only rose $50 a ton to $660/ton at the end of 2006.

The primary factors driving steel prices up are the demand for the raw elements of steel and manufactured steel due to unprecedented global demand. Steelmakers are raising prices to recover climbing costs for iron ore, ferroalloys, coke, scrap, energy, and shipping. The cost of iron ore increased 66% in one month from December 2007 to January 2008. Steel scrap costs increased over 29%. The cost of natural gas increased 19.95% in the same period. Iron ore and its shipping cost account for approximately 39% of the cost of liquid steel produced in blast furnaces; coke and its transport approximately 25%; and scrap steel and its delivery approximately 12%. Scrap steel and its delivery account for approximately 77% of the cost of liquid steel produced in electric arc furnaces.