EU Steel Market Report by Christian Rubach (Germany) EFR Meeting March 9, 2010 Brussels

EU Crude Steel Production (1000 tonnes) % change Austria ,4 Belgium ,2 Czech Republic ,1 Finland ,3 France ,2 F. R. Germany ,7 Greece ,9 Hungary ,2 Italy ,5 Luxembourg ,2 Netherlands ,2 Poland ,9 Romania ,4 Slovakia ,5 Slovenia ,0 Spain ,3 Sweden ,0 UK ,4 EU ,7 Source: IISI

Steel Production/ Steel Scrap Consumption in the EU (million tonnes) Sources: EUROFER/BDSV (-30%) (-29%) * * estimated

Worldsteel Sources: World Steel Association

Worldsteel

Worldsteel The world crude steel capacity utilisation ratio of the 66 countries in January 2010 was 72.9%, an increase from 71.9% in December Compared to January 2009, the utilisation ratio in January 2010 increased by 11.6 percentage points.

Worldsteel Sources: World Steel Association

EU: Overview Steel Using Sectors Sources: EUROFER

EU: Forecast for real consumption Sources: EUROFER

EU: Forecast for apparent consumption

EUROFER‘s Steel Market Outlook EU Steel market: first green shoots of recovery There are signals that economic momentum in the EU economy should gradually gain further strength this year. Progress will be slow and surrounded by uncertainties; however, the risks are now much more balanced than a year ago. Also in the steel using sectors the recovery will take hold. Activity in the manufacturing sector will be supported by improving international trade and inventory replenishment. The outlook for the engineering industries and automotive manufacturers has become slightly more upbeat.

EUROFER‘s Steel Market Outlook EU Steel market: first green shoots of recovery In contrast, perspectives for the construction sector have darkened, mainly due to a further deterioration in the non- residential sector. On balance, output in the steel using sectors will rise 0.6% in A further strengthening is expected for 2011 with growth accelerating to 3.5-4%. The rebound in real steel consumption expected for 2011 will broaden the basis for growth in apparent consumption