1. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 1 COMMODITY REVIEW STEEL Patrick CHARTON

2. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 2 STEEL & ALUMINIUM

3. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 3 STEEL & ALUMINIUM : LCC FY 06

4. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 4 ROUND BAR : LCC FY 06

5. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 5 ROUND BAR

6. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 6 ROUND BAR

7. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 7 ROUND BAR MARKET TRENDS: – Carbon bars: strongly influenced by scrap prices. Sourcing through reverse auctions – Alloyed steel bars: strong impact on energy costs when heat treatment is required. No recovery expected. – Stainless steel bars: speculation on Chromium and Nickel have raised premiums.

8. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 8 SCRAP PRICES IN EUROPE

9. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 9 CARBON SHEET

10. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 10 CARBON SHEET

11. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 11 CRML : LCC FY 06

12. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 12 ELECTRICAL STEEL MARKET TRENDS: –High demand on the Europeen Markets and low inventory in the Service Centers on the 1st half of CY06. All major Europeen steel makers have increased their prices by at least 70 /mT. –Fixed price contract with US Steel Kosice untill 12/31/2006 for Fully Processed. –Sourcing from China: agreement between Emerson and Bao Steel to increase commercial relations notably on electrical steel. –Semi Processed prices indexed on CRU. 100/mT increase from January 06 till July 06.

13. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 13 CRC SPOT MOVEMENT IN CHINA Upwards trend

14. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 14 DWA Prices Vs CRU

15. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 15

16. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 16 FULLY PRICE RANGE vs SEMI

17. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 17 SEMI PROCESS

18. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 18 Fully-PROCESS

19. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 19 STRATEGY and ACTION PLAN –Transfer from Fully to Semi: 7000 mT per year (65% alternators, 35% GH). –Semi process: Sartid (USSK Serbian mill) started production. It is a good benchmark to DWA and Novolipetsk. –Sourcing from China: Buy 6000 to 9000 mT Fully from both Bao Steel and Wuhan, Steady consumption but large volume (5 widths M600 and 3 widths M800) Wuhan started a M400 milling line. LS will qualify this material in FY07.

20. COMMODITIES REVIEW 22&23 June06 04/06/2014 07:16 20 CRML – Lastest News FULLY PROCESS –LCI Novolipetsk : Proposal 730 /t M600 & 710 /t M800 DDU Angouleme –Erdemir :Proposal + 55 /t in September 06 (720 /t for M600 slit) –Delivery since March 06 CRML from China (BAO STEEL & WUHAN ) : 450 t to be delivered in june with an average price DDP ~623 /t (510 & 545 /t FOB Shanghai) –ACRONI : Proposal + 70 /t in Sept 06 (747 /t for M600 slit) SEMI-PROCESS –DWA : 600 /t in Q1 07 fixed price valid for 3 months period. –ARCELOR : Strong negociation for July to dec 06 : No change on the prices until Décember 06 (640 t for mother coil lg 1100mm DDP) –MARCEGAGLIA : Prices still linked with CRU value (CRU-5 /t + 47 /t DDP Angouleme) – (Cru = 580 /t in May 06)