Jim's comments BEFORE the interview:      I've been a huge backer in the steel industry... In the steel stocks, for a long time... Really pushing them hard after we had John Surma, the CEO of United States Steel Corp. (X)... On our show from Penn State back on March 26th... Now, even after the horrible reversal, letter X, as we call it, is up 19%... 19% is still a good game... In fact, I think I may have been the biggest booster of steel for the last couple of years since Stalin's first Five Year Plan...

That was then... This group, which was on fire for so long, a good thing... seems to have been hit with an atomic bomb, which is not so good... The combination of views about lower coal prices, something that could presage lower steel pricing, signs of increased customer resistance to the steel industry's attempt to drive up pricing through drive up charges... I saw that in the paper this week and the weekend about the auto companies... And maybe the old-fashioned price hikes have basically wiped out demand... Since June 30th, X is down 18.5%, Arcelor Mittal (MT) is down 14% and Cramer-fave Nucor (NUE) is down an incredible 15%... SOX, the steel ETF is down 14.5% since then... The S&P is only down .5% so anyone in these stocks has just been crushed versus the market... In a little more than one week's time, the steels have gone from one of the best to one of the worst performing groups out there... Like natural gas, like fertilizer, now of course, they're not like the homebuilders, banks and brokers, but the loss has been significant...

What I want to figure out is if this decline in the steel stock signals something real, that the fundamentals are deteriorating, or did the stocks just get too high, and the pull backs weren't buying... So tonight I'm bringing on the CEO of a company that has really done a lot of things right. Sims Group Ltd. (SMS), Dan Dienst, to try and answer those questions.

SMS is a supplier to the steel companies... It's the world's largest recycler of metal, selling scrap to the steel industry, and it too is off 12% since June 30th, but it's been a phenomenal stock... I want to like the steels... But you know what?... It isn't about hope, it isn't about love, it's just trying to figure out if there is too much pessimism out there, or that the pessimists are going to be right... So, to help us figure things out, here's Dan Dienst...

Mr. Dienst, welcome to Mad Money...