Commodity is a moody trade. Especially steel and copper. Commodity was on the top of the world in 2005 and early 2006, then tumbled. Right now Steel and Copper are moving up. The reason is China (although a steel producer) at least is not exporting any steel. They busy building 350 billion dollars Olympic facilities for 2008. I believe by the end of 2007 the commodities climate will turn bearish. China construction is over and they will start dumbing their steel, if we get the expected recession in 2008, commodities will decline. So enjoy the ride as long it lasts. Don't warry yourself too much with P/E ration especially with steel stock.