As prices have stagnated since August, inventory levels have continued to grow, as we suspect an increasing number of speculators are placing their homes on the market.

Once prices retreated toward $ 70, we saw the speculators come back in.

We believe the high pace of construction activity and softening demand will lead to increasing inventory levels through 2006 and less price appreciation.

Inventory levels for steel products are now getting high and suppliers are facing falling prices. The indexes have risen much faster than I anticipated and I still think the pace is too fast given the prospects for corporate earnings.

I wouldn't suspect that we're going to get much further into October.

We should see a retreat in prices after the US inventory data is released. That's because I expect a significant build in crude, in the range of five to six million barrels.