Steel prices had a record run in early 2008 but hit a hurdle just after the Olympics when demand started waning.
Inventories started rising steadily from September as global demand dropped after the summer games ended in China, which was till then the largest consumer of the alloy.
Big steel makers including state-run SAIL, Essar, JSW and RINL were forced to cut output and prices, which at one point had touched a record $1,250 a tonne. Tata Steel was an exception as it saw production rising.
The government was busy throughout the year -- spending the first half reining in prices and the second half providing various sops to keep the steel industry from collapsing.
Amid all the ups and downs, the industry is hopeful of 2009 infusing a fresh lease of life to business with demand accelerating and profits maximising.
Steel Minister Ram Vilas Paswan too is hopeful of things returning to normal in 2009.
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"No doubt, the Indian steel sector blossomed till a few months ago, but is now facing the heat of the global economic meltdown, though its impact has not been severe. The bad phase is temporary and the sector should come out of it in 2009," Paswan has said.
Even as the minister expects the steel sector to come on track in the new year, the companies feel the economy and demand would be the best judge.
"We are not going to be back to the pre-September levels so soon. Though the prevailing negative sentiments in the world will improve, long-term projects would depend on the demand-supply scenario," SAIL Chairman S K Roongta said.