The steel market was affected by a variety of factors. In December 2003, President Bush repealed tariffs on imported steel. Mill consolidations and a booming economy in China limited supplies. A shortage of coke, a necessary material for steel production, and a shortage of scrap metal, also used for steel production, contributed to the limited steel supply.
The shortage caused steel prices to skyrocket, creating an industry-wide chain reaction. Higher prices were passed down to contractors, who in turn were forced to decide whether to pass the costs on to customers.