Was the steel totally submerged in the liquid, or was it exposed to air too?
Is the red liquid a solution or suspension? Are there just red particles floating around in the liquid which will eventually settle if left undisturned, or is the liquid itself red?
I suspect the Iron in the steel reacted with the acetic acid (vinegar) and formed Iron Acetate. According to my CRC book, "Iron (III) Acetate, Basic" FeOH(C2H3O2)2 is brown/red in solid form (but this is insoluble in water), and according to wikipedia, Iron (II) Acetate forms a light-green tetrahyrate, so these might be contributing to the color of the liquid.
And it is also possible for some Fe2O3 (non-magnetic) to have formed as well, which is also reddish brown, but will not dissolve in solution, it will settle out after a while.