In mid-2008 US Steel reported tremendous price increases in steel spot markets. For example, for Q2 2008 the price for flat rolled steel increased from $646/ton to $777/ton. Similarly, hot rolled coil sold for $555/ton in December 2007, whereas by July 2008 the price had increased to above $1000/ton. While US Steel's major materials (coke and iron ore) have also increased in price, these price increases are not hurting the company's profit margins for two reasons. First, the price increases for raw materials have been less than for finished steel products. Second, and more importantly, US Steel strives for vertical integration. Currently, the company's US operations are largely vertically integrated and management is trying to transform US Steel Europe to be more vertically integrated. As the global infrastructure boom continues, these two factors should help US Steel continue to improve profitability.[1]