First, there isn't a commodities "bubble". There is a secular bull market in commodities, which is being driven by economic fundamentals (namely, demand growing after two decades of underinvestment in supply).
Second, no market goes straight up without corrections. There have been serious corrections already in some commodities (e.g., base metals), and there will be corrections in others going forward. You can have cyclical (less than five years) bull and bear trends within a secular (longer than five years) bull market. Happens all the time.
Third, the average secular bull market in commodities over the last 140 years has lasted 18 years. According to Jim Rogers, this one started in 1999. So, if history is any guide, we probably have several more years to go. During secular bull markets in commodities, different commodities peak at different times. Fortunately for Alloy Steel shareholders, Alloy Steels products can be used in the production of several different commodities, so the company's fortunes aren't linked to just one.
