THE MEPS WORLD CARBON STEEL PRICE INCREASES AGAIN IN JULY. COMPARISON OF TRANSACTION PRICES ($US/tonne)

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1 VIEWPOINT JULY 2009 s THE MEPS WORLD CARBON STEEL PRICE INCREASES AGAIN IN JULY COMPARISON OF TRANSACTION PRICES ($US/tonne) HR Coil HR Plate CR Coil HD Galv E Zinc W Rod M Sect R Bar M Bar USA Canada NA PR China NA Japan South Korea Taiwan Poland Cz & Slov. Rep EU (average) Germany France Italy UK Spain ps s Annual Subscription Rate 2009: UK NON UK Major steelmakers in the US have announced a series of transaction price hikes over recent weeks for strip mill products. These are steadily being implemented. There is little import competition to prevent further increases being applied. Certainly, distributors are keen for the proposed rises to take hold as they will produce benefits in terms of stock valuation. Nevertheless, market players are concerned that the price recovery might not be sustainable if the mills prematurely restart idled facilities. Service centre business is still down by 40/50 percent with only a small recent increase in Based on low values. MEPS (INTERNATIONAL) LTD 263 Glossop Road, Sheffield S10 2GZ, England Tel: (0114) Fax: (0114) subs@.co.uk Web Site: activity, most probably due to the price advances. The economy remains depressed, leading to a persistently low level of steel consumption. Canadian transaction values have bottomed, prompting us to record a number of rises this month. The domestic mills believe that destocking may be complete. They report that their order position has shown a strong improvement in recent weeks as customers try to fulfil their requirements in advance of the summer holidays. The threat of escalating prices also seems to be spurring on order placement. ISSN by MEPS. All rights reserved. No information contained in this report may be used or reproduced in any manner whatsoever without written permission from the publisher. ps s Photocopying, faxing or forwarding by to a third party is strictly prohibited without the permission of MEPS () Ltd.

2 Nevertheless, distributors and end-users still anticipate relatively weak business conditions ahead and few are optimistic that demand will strengthen significantly for the balance of Imports from the US remain relatively low and offshore interest is absent. The outlook in the Chinese market is quite positive. Producers have been obliged to lift domestic prices in order to compensate for rising input costs. However, soft global demand and uncompetitive offers continue to hamper export business. There is some unease that the mills will ramp up production over the next few months which could dampen market sentiment and cause oversupply. s In Japan, domestic steel orders are edging up, albeit slowly, aided by a small recovery in manufacturing industry and export sales. The government's economic stimulus plans have boosted activity in the auto and home appliance sectors. Stock adjustment for strip mill products is progressing well. Inventories held by local steelmakers and distributors, as end of May, fell by 3 percent compared to the previous month. Meanwhile, quayside stocks of imported flat products dropped by 6 percent in the same timeframe. Nippon Steel has announced its intention to restart one of the blast furnaces that was shut down as part of output restraints earlier in the year. South Korea's Posco has stated that domestic prices will be held at the current level for the remainder of 2009, although the company does not rule out the possibility of lifting export values as overseas markets improve. A small recovery in local demand is expected ps FLAT PRODUCTS HOT ROLLED COIL US transaction values are $US15 per tonne above those monitored in June. The market is not robust but inventories are low and customers are purchasing to fill holes. The mills reported healthy order books for July with August filling up quickly. They intend to apply further price hikes for September business in order to claw back escalating scrap costs. A lack of import pressure may make this achievable. Canadian mill bookings have improved as customers' stocks have shrunk and they need to re-order. The recent slide in transaction figures has been reversed and further increases are expected shortly, despite the lacklustre state of real demand. s Chinese domestic prices have continued on an upward track. Growing raw material costs have supported the 2 CURRENCY EXCHANGE RATES July during the second half of the year. The positive market conditions noted last month in Taiwan persist. Customers are restocking and some speculative purchasing is taking place ahead of further perceived price hikes. CSC will push up the values of hot and cold rolled coil for overseas shipments during the August/October period. The company is expected to impose further hikes in the home market come September. Polish demand has not improved as the financial crisis cuts deeper. Prices, which have declined this month, are not likely to show any significant growth during Producers are carrying on with their output curbs. In the Czech and Slovak markets, the economic situation is worsening. Both government and private investment has dried up. The current dismal level of steel consumption is forecast to continue well into Selling values have deteriorated further, although the rate of collapse has slowed. Buyers believe that the bottom has yet to be reached. In contrast, demand and prices are strengthening in the West European strip market as the destocking phase is all but over and buyers need to fill gaps in their inventories. Delivery lead times from local mills are lengthening and a surge in third country imports is unlikely due to the competitiveness of domestic offers. Several major mills have told customers they intend to lift basis values for the third quarter. However, some companies feel the move is premature. There are fears that producers may try to boost capacity too soon and the market will be unable to absorb the increased supply. rise and market sentiment has also improved, despite relatively high inventories. In Japan, the overstocking Units/ US$ USA ($US) 1.00 Canada (C$) PR China (RMB) Japan (Yen) South Korea (KRw) 1268 Taiwan ($NT) Poland (ZL) Czech. Rep. (KC) Eurozone ( ) UK ( ) ps s by MEPS. No information contained in this report may be used or

3 s ps PRODUCT DEFINITIONS s Note: 3 FLAT-ROLLED PRODUCTS TRANSACTION PRICES (Local currencies per tonne) Czech/ US US Canada Canada China Japan S.Korea Taiwan Poland Slovak ($US) ($US) (C$) (C$) (RMB) ('000 Yen) ('000 KRw) ('000 $NT) (ZL) (KC) /ton /tonne /ton /tonne Hot Rolled Coil High: Low: Hot Rolled Plate High: Low: Cold Rolled Coil High: Low: Hot Dipped High: Galvanised Coil Low: Electro-Zinc High: NA NA NA Coated Coil Low: NA NA NA Includes surcharge on all products in the US and Canada. NA = Not available. EU AVG. Germany France Italy UK UK Spain ( ) ( ) ( ) ( ) ( ) ( ) ( ) Hot Rolled Coil High: Low: Hot Rolled Plates High: Low: Cold Rolled Coil High: Low: Hot Dipped High: Galvanised Coil Low: Electro-Zinc High: Coated Coil Low: Hot-Rolled Wide Coil - 2-3mm thickness, width over 1.1 metres. - except USA and Canada: Thickness 0.08 inches, width over 40 inches. Hot-Rolled Plates mm thickness, width over 2.0 metres. - except USA and Canada: inches thickness, width over 60 inches. Cold-Rolled Coils - 1mm thickness, width over 1.3 metres. - except USA and Canada: 0.05 inches thickness, width over 40 inches. Hot Dipped Galvanised Coils - 1mm thickness, width over 1.1 metres, standard coating. - except Eastern Europe - Sheet form and USA and Canada: 0.05 inches thickness, width over 40 inches, standard coating. Electro-Zinc Coated Coils - 1mm thickness, width over 1.1 metres, standard coating. - except USA: 0.05 inches thickness, width over 40 inches, standard coating. Prices in this table relate to deliveries in different time periods. It is important that this table is read in conjunction with the text in the newsletter. ps s by MEPS. No information contained in this report may be used or

4 s ps s 4 FLAT PRODUCTS TRANSACTION PRICE FORECASTS - NORTH AMERICA ($US/tonne) Based on low values Actual Forecast Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Hot-rolled Coils Hot-rolled Plates Cold-rolled Coils H.D. Galv Coils E.Z. Coated Coils situation has eased with certain sizes being in shortage at the distribution level. The South Korean market may have bottomed out. Supply has tightened further as some stock replenishment is underway. Quantities and prices of imported material are expanding. Domestic mills have made their price offers to customers in China and South East Asia more expensive. Material shortfalls have restored confidence in Taiwan, where the positive price trend persists. East European values have fallen in a climate where supplies are plentiful and there is no obvious improvement in demand. The small pick up in purchasing activity continues in most West European countries, mainly due to stock replenishment rather than any real recovery in consumption. Availability is constrained because of the ongoing output cuts. A small price rise has been secured in Italy, Spain and the UK. HOT ROLLED PLATE US transaction values are up by $US50 per tonne, propelled solely by rising scrap prices. The market remains extremely weak and a number of participants believe the increase will be short-lived. Distributors have started to re-order small quantities but there is still a great deal of uncertainty. The Canadian market remains relatively soft. Service centres say business is slow but steady. As the mills have floor stock, distributors are only purchasing for their immediate requirements even though prices are advancing slightly. There is a question mark over whether recent increases are sustainable. The Chinese mills have successfully pushed for a rise of around 5 percent, despite relatively weak end-user demand. Export sales are limited although values have picked up along with domestic ones. In Japan, demand from the industrial/construction machinery manufacturers and the shipyards continues to deteriorate. Inventories at dealers and users remain high. The integrated steelmakers will further reduce output for the domestic market during the current quarter to reflect declining sales. Orders for new vessels have plummeted at South Korea's shipyards. Domestic sales of ordinary steel plate are also depressed. Taiwanese buyers have finally decided to call a halt to the significant price hikes demanded by the mills in May and again in June. Values have fallen back quite sharply. Polish producers are increasingly looking to export markets to offset the drop in sales at home. In the Czech Republic, demand from shipbuilders and heavy machinery makers is dire. Consequently, order intake at the plate mill is very slow. Moreover, there is pressure from imports, particularly from German and Polish sources. Although new plate business is minimal in Western Europe as the summer vacation MEPS - API LINEPIPE STEEL PRICE INDEX X60/65 COMPOSITE Hot Rolled Plate Hot Rolled Coil Q1/09 Q2/09 Q1/09 Q2/09 EU Average Non Sour Sour Asia Average Non Sour Sour * Q4/06 = based on US dollar values. ** p = Provisional. e = Estimate. ps s by MEPS. No information contained in this report may be used or

5 approaches, the worst seems to be over with markets in the South recovering more quickly than those in the North. Higher oil prices mean that more offshore developments are going ahead and line-pipe projects are coming back on stream. There is very little threat from third country importers. COLD ROLLED COIL US customers believe that the market has reached the bottom and expectations are for a steady, albeit slow, recovery. Destocking at the service centres is certainly complete, although end-users continue to purchase only small quantities. Transaction values have strengthened further since our last report and look poised to continue the positive tendency in September. The Canadian producers have implemented transaction price hikes for July/August and more are anticipated in the autumn. There is still a lack of real demand but inventory depletion has generated some spot business for the mills from distributors needing to fill holes in their stocks. s Further price gains have been noted in China amidst low inventories and positive indicators regarding demand. The performance of the auto sector has been very encouraging in recent months, unlike its counterparts in many other countries worldwide. In Japan, direct end-user consumption is demonstrating a small revival. Distributors' stocks are dwindling, allowing them to reorder limited amounts of new material. South Korean service centres continue to reduce inventories, despite the bleak economic climate. The large discount that Posco applied in May remains in place as we enter the third quarter. Taiwanese demand has rebounded, leading to scarce supply. The mills have gained another substantial price advance. ps East European values are still under negative pressure as customers only buy minimum tonnages for immediate use. An upward price tendency has developed in Italy and the UK, where inventories are well down and mill supply has tightened. In the remaining West European countries, demand is not sufficiently strong to support an immediate advance but business concluded later in the quarter could realise an increase. COATED COIL s Some US mills are reporting full order books for hot dipped galvanised coil as output reductions continue and service centres begin to fill gaps in their inventories. Transaction figures are already up by $US60 per tonne since our June report and the 5 SOUTH KOREA FLAT-ROLLED PRODUCTS Transaction Prices, '000 KRW/tonne ps s by MEPS. No information contained in this report may be used or /07 11/07 3/08 7/08 11/08 3/09 7/09 HR Coil CR Coil HR Plate HD Galvanised scheduled September rise is likely to be readily accepted. Nevertheless, poor construction activity and a dormant auto sector are failing to generate any sizeable demand for coated products. This state of affairs is unlikely to change for the better until well into Electro-zinc coated coil transaction numbers have once again failed to rally. In Canada, the outlook for consumption over the next few months is pessimistic as suppliers try to cope with rapidly shrinking car output. However, the mills have held hot dipped galvanised transaction values at the June level. The forward price trend may be for some upward movement in the short-term, on the back of the improvement in the hot and cold rolled substrate. Escalating raw material costs, together with expanding sales to the construction, vehicle and home appliance industries, have been major factors in the recent price advances noted in China. Hot dipped galvanised inventories have dropped significantly in Japan as activity picks up at the carmakers. However, demand from the depressed construction sector is tepid at best. Auto sheet production continues to grow in South Korea due to a successful government initiative to stimulate domestic car sales. Taiwanese suppliers have secured price rises for hot dipped and electrozinc coated coils in both domestic and export markets, citing the increased cost and limited availability of cold rolled coil. Polish production of passenger vehicles has not improved, whereas various schemes to promote vehicle sales are having the desired effect in the Czech/Slovak markets. However, the increased

6 production is not yet reflected in demand for coated coil. Prices continue to spiral downwards in all three East European countries reviewed. In contrast, LONG PRODUCTS US government initiatives on infrastructure are not likely to have any significant impact on steel consumption during On a more positive note, new housing starts in the private sector continued on an upward trend in May compared to the previous month, although they are still well below those of a year ago. In Canada, despite very little change to mill activity over the last four weeks, there has been some upward price movement due to scrap cost increases. s Chinese values have continued to firm. However, recent strong demand may begin to weaken as the onset of the rainy season approaches. A full revival in the Japanese construction sector seems some way off, although public works projects are forecast to pick up during the peak summer building season. The outlook for the South Korean new housing sector is bleak for the rest of this year. This will adversely affect steel sales. State funded schemes are helping the recovery of long product consumption in Taiwan. Forecasters predict that Polish demand should remain at a reasonable level because of a relatively healthy building sector. A lack of financial resources has caused several major infrastructure projects to be suspended in the Czech Republic. In most countries of Western Europe, producers have failed to maintain prices as construction activity is so poor. ps WIRE ROD A further transaction price increase, announced by a number of steelmakers and driven by escalating scrap charges, has taken hold in the US. Domestic supply s 6 LONG PRODUCTS TRANSACTION PRICE FORECASTS - NORTH AMERICA ($US/tonne) Based on low values Actual suppliers have secured price hikes in Italy and the UK. Tonnage is quite limited at present and gains are possible in the rest of Western Europe shortly. has been tightened by the idling of one mill and the imminent closure of another. Import penetration remains at a low level, although licence applications did go up in June. Demand is slack but inventories at end-users and service centres are low. Canadian buyers have agreed to roll over last month's figures. Chinese domestic prices continue their robust upward momentum on the back of higher raw material costs and a resurgence of construction activity. Japanese suppliers have held on to transaction values in the latest round of negotiations, despite import pressure. Inventories at dealers are being run down and should become fully in balance during the third quarter. No more price concessions have been made in South Korea. The mills are restraining output in order to bring supply and demand into equilibrium. Buyers in Taiwan have accepted a small rise as demand strengthens amidst the restricted availability caused by recent production cuts. Selling values look poised to climb further. East European figures have slipped again as business activity flounders. In Germany, France and Italy suppliers have conceded decreases as inventories remain high and customers only buy small parcels to replenish their rundown stocks. MEDIUM SECTIONS AND BEAMS Due to ongoing sluggish demand, US mills struggled to hold the June transaction price rise but this has now been reinforced by the announcement of an Forecast Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Wire Rod Medium Sections Rebar Merchant Bar ps s by MEPS. No information contained in this report may be used or

7 August hike. Imports are hardly a factor in the market at present. Although Canadian sales are still very far from normal, a number of distributors have noted a slight up-tick in activity. The improvement has been reflected in mill transaction figures. In China, announcements of higher prices by the steelmakers have been mirrored in the market place, where inventories are now at reasonable levels. However, demand remains muted amidst fears that the improvement may be short-lived. Export s ps PRODUCT DEFINITIONS s Note: 7 LONG PRODUCTS TRANSACTION PRICES (Local currencies per tonne) Czech/ US US Canada Canada China Japan S.Korea Taiwan Poland Slovak ($US) ($US) (C$) (C$) (RMB) ('000 Yen) ('000 KRw) ('000 $NT) (ZL) (KC) /ton /tonne /ton /tonne Wire Rod High: Low: Medium Sections High: and Beams Low: Reinforcing Bars High: Low: Merchant Bars High: Low: Includes surcharge on all products in the US and Canada. NA = Not available. EU AVG. Germany France Italy UK UK Spain ( ) ( ) ( ) ( ) ( ) ( ) ( ) Wire Rod High: Low: Medium Sections High: and Beams Low: Reinforcing Bars High: Low: Merchant Bars High: Low: Includes scrap surcharge in Germany, France and Italy. opportunities are scarce because suppliers from other countries are more competitive. Following stable figures in May, stocks of H-beams held by Japanese distributors grew by just over 1 percent during the period to the end of June in an environment of stagnant sales. Nippon Steel decided to hold domestic values for July contracts at the June level, whilst continuing with output reductions. The mills will concentrate on export deals wherever possible. Sales of H-beams have contracted sharply in South Wire Rod (Mesh Quality) mm diameter. - except USA: inch. Medium Sections and Beams - 240mm x 240mm H Beam. - except USA and Canada: 10 inches x 10 inches wide flange beam: China - 250mm I beam. Reinforcing Bar (Deformed) mm diameter - except USA and Canada: #6(0.75 inches diameter). Merchant Bar - 50 x 50mm x 6mm equal angle - except USA and Canada: 2 x 2 inches x 0.25 inches equal angle. Prices in this table relate to deliveries in different time periods. It is important that this table is read in conjunction with the text in the newsletter. ps s by MEPS. No information contained in this report may be used or

8 Korea due to the continuing slowdown in construction. Although stock adjustment is complete in Taiwan, buyers are re-ordering cautiously. Prices have been revised downwards but producers are hoping to reverse the trend as soon as demand strengthens. There is very little action in the East European markets at present, causing price weakness in Poland, the Czech Republic and Slovakia. Suppliers have clipped selling values by around 3 percent. In Western Europe, ArcelorMittal and Peiner Trager have reduced their raw material surcharges in line with scrap movements. Several mills announced higher basis numbers for the third quarter. However, despite much lower stocks at customers, sales are slow and the producers have been keen to do deals. s REINFORCING BARS Even though demand is poor, suppliers have pushed up transaction figures in the US as rising raw material costs impact on their profits. They are warning customers that more hikes may follow in the Autumn. Canadian transaction values have not changed from last month. Distributors' stocks are lower than of late. Chinese prices continue to strengthen. Material is difficult to source in the general market and shortages of certain sizes are occurring as the mills make direct shipments to a number of major infrastructure projects. Several Japanese rebar makers have decided to lift selling values for August contracts in order to try to recoup soaring scrap costs. They are still suffering from a lack of sales caused by the crisis in construction. Some of the mills around Tokyo are planning longer than usual summer maintenance outages. They will stop operating for a maximum of eighteen days during a period when electricity costs are at a premium. ps South Korean consumption has fallen away for seasonal reasons. Local distributors are offloading material below cost in order to generate cash flow. The outlook for the remainder of 2009 is not good because of the poor performance of the private housing sector. The discounts on steel, offered by the domestic mills last month, remain in place. Government building projects have created strong demand in Taiwan at a time when the producers traditionally limit output because of expensive electricity rates. Suppliers have secured another price advance of almost 5 percent over the past month, on the back of surging scrap charges. s The East European market is quiet, causing local mills to focus on export business but the volumes traded are small. Prices continue their negative movements. West European demand is also weak SOUTH KOREA LONG PRODUCTS Transaction Prices, '000 KRW/tonne ps s by MEPS. No information contained in this report may be used or /07 11/07 3/08 7/08 11/08 3/09 7/09 Wire Rod Rebar M. Sections Merchant Bar with most customers' requirements for July/August already covered. Therefore, there is very little new business being concluded. However, scrap and billet costs are moving up and the mills need to recover their additional expenditure. Consequently, they have raised their offers to both domestic and export clients. The hike is difficult to implement locally. MERCHANT BARS Citing an increase in raw material costs, US mills have announced an initiative to lift prices in August. Order intake is very dull and it is too early to judge whether customers will accept the rise. A small uptick in Canadian transaction values is due solely to exchange rate fluctuations. Demand has not revived. Although Chinese figures have moved up by 7 percent since last month, there is a lack of buying activity. Once again, Japanese clients have insisted on lower prices as they struggle to survive in today's depressed construction market. The mills would like to boost selling values as input costs escalate but this is proving impossible in the present economic climate. South Korean demand is depressed. Suppliers have maintained prices at the lower numbers established in June. Taiwanese customers have successfully called for a small decrease. East European figures are down this month by between 1.6 and 4.0 percent, depending on country. Demand is steady, albeit at a low level. Higher scrap costs have helped to allow a small price improvement in France. In contrast, the 20 per tonne June increase

9 has failed to hold in the UK with mill values reverting to those of May. Demand is slow because of the poor state of the manufacturing industry. Elsewhere in MARKET AND INDUSTRY ISSUES CHINESE AUTO The China Association of Automobile Manufacturers reports that sales of Chinese made vehicles reached 4.96 million units in the first five months of 2009 a rise of 14 percent year-on-year. China is now the biggest auto producer in the world with projected sales of more than 10 million units in s CAPACITY/INVESTMENT BSRM Group, in Bangladesh, is building a 150,000 tonnes per year billet plant in Chittagong. Commercial output is expected to begin towards the end of Vietnam s Van Loi Steel Group will start up its first blast furnace at Haiphong, later this year. With an annual capability of 500,000 tonnes it will lift total billet potential to around 1.1 million tonnes. The project includes a coking plant and basic oxygen converter. MEDIUM TERM PRICE FORECASTS COLD ROLLED FLAT PRODUCTS - N.AMERICA The MEPS North American Average Cold Rolled Coil transaction price increased by almost 7 percent in July. A slightly larger advance was noted for hot dipped galvanised coils as shortages developed in the market. ps Transaction values for both products are forecast to continue on their upward path in the short term. Sales volumes from domestic producers are likely to increase as distributors begin to refill depleted inventories. Higher scrap costs could also force prices to rise further. However, the recovery may be short lived. Underlying consumption is expected to stay weak throughout the second half of Most customers will keep restocking efforts to a minimum in the run up to the financial year end. Consequently, we foresee a modest dip in steel selling figures during the fourth quarter. s Price advances are expected to resume at the beginning of next year. The economic situation is likely to improve as 2010 progresses. Moreover, credit restrictions should reduce, stimulating demand across 9 Western Europe, buyers are proceeding with caution and producers will maintain their output curbs until demand strengthens. The company is also building a similar sized blast furnace-based facility at Vung Ang industrial zone, which will also come on stream in Handan Iron & Steel is installing a 1.7 million tonnes per year cold strip mill and two hot-dipped galvanising lines at its plant in Handan city. The lines will have annual capacities of 450,000 tonnes and 350,000 tonnes. Output will commence in mid Al Ghurair, of the United Arab Emirates, has built a high-strength low-alloy strip rolling and coating plant. Trials have been carried out and the annual capacity is 200,000 tonnes of hot-dipped galvanised coil. Korea s Posco recently commissioned a new 120,000 tonne per year coil centre at Port Klang in Malaysia its second in the country. The first was built in 2006 at Rawang, Selangor. It has an annual capacity of around 140,000 tonnes. 450 So urce: MEPS STEEL PRICES ON-LINE /07 11 /07 3 /08 7/08 11 /08 3/09 7 /09 11/0 9 3/10 7 /10 the supply chain. However, a slower upturn is predicted than in recent times, with many companies still suffering from the effects of the recession. ps s by MEPS. No information contained in this report may be used or COLD ROLLED FLAT PRODUCTS FORECAST N American Average Transaction Values, $US/tonne Forecast Range: Aug 2009 Jul 2010 Cold Rolled Coil Hot Dipped Galvanised Coil

10 s ps s 10 WORLD/REGIONAL AVERAGE TRANSACTION PRICES ($US/tonne) WORLD E.U. N. AMERICA ASIA Last This Last This Last This Last This Month Month Month Month Month Month Month Month Hot Rolled Coils :High :Low Hot Rolled Plates :High :Low Cold Rolled Coils :High :Low Hot Dipped :High Galvanised Coils :Low Electro-Zinc :High Coated Coils :Low Wire Rod :High :Low Medium Sections :High and Beams :Low Rebars :High :Low Merchant Bars :High :Low Note:- The World prices are an arithmetic average of the transaction values identified in three regions (EU, Asia, and North America), converted into US dollars in accordance with exchange rates in this issue. Individual product price forecasts are available. Please visit WORLD/REGIONAL AVERAGE TRANSACTION PRICE INDICES January 1997=100 WORLD E.U. N. AMERICA ASIA Last This Last This Last This Last This Month Month Month Month Month Month Month Month Hot Rolled Coils Hot Rolled Plates Cold Rolled Coils H. D. Galv. Coils E. Z. Coated Coils Wire Rod M.Sections & Beams Rebars Merchant Bars Note:- Price indices are calculated using the low figures in the above table - January 1997=100. Individual product price forecasts are available. Please visit Please note - EU price indices in this table are calculated using dollar values and will differ from the euro figures listed on our website. ps s by MEPS. No information contained in this report may be used or

11 s ps s 11 TRANSACTION PRICES - MONTH ON MONTH % CHANGE (Local currencies per tonne) PRICE DEFINITIONS versus June 2009 HR Coil HR Plate CR Coil HD Galv E Zinc W Rod M Sect R Bar M Bar USA Canada NA PR China NA Japan South Korea Taiwan Poland Cz & Slov. Rep EU (average) Germany France Italy UK Spain Based on low values. The August issue of the MEPS INTERNATIONAL STEEL REVIEW will be dispatched on 25 August, The transaction prices in this publication relate to those paid by consumers and stockholders for prime material in the specified steel products defined in tables 2 and 4. The prices are for regular business transactions between customers and their local steel mills, negotiated during the current month for delivery in the future. The transaction prices include all extras for the lowest priced grade of steel for the selected products - sold ex mill. Delivery charges and local taxes are not included in the quoted prices. Contract deals arranged in the domestic market, or deals for lots of imported steel, are specifically excluded from our price evaluation. All price and market data is researched by MEPS staff and our local correspondents. High and low values are provided to reflect the range of prices in the market between major and minor customers. Please note the transaction references in the different geographic areas:- China-spot transaction prices between mills and first tier distributors or consumers in the Guangzhou region Japan-spot transaction prices between mills and first tier stockholders or consumers Korea-the low price relates to deals between the mills and large steel consumers. The high price refers to ex stock mill sales through selected outlets European Union-the average price is weighted based on consumption in the five main countries -individual country prices refer to deals between customers and EU mills United States-Mid West spot transaction prices from the domestic mills Poland-ex-mill to consumers or to selected sales outlets The data contained in this newsletter has been obtained from respondents who we consider provide accurate intelligence on the steel market. We make our best endeavours to be assured that the information is correct and that our analysis is reliable. MEPS () Ltd. cannot be made liable for any loss resulting from use of our published data, however it may arise. ps s by MEPS. No information contained in this report may be used or

12 MEPS REGULAR PUBLICATIONS EUROPEAN STEEL REVIEW (monthly) This is our flagship publication. The first report was produced in Each monthly issue incorporates high and low market prices for eleven steel product forms in the EU - Germany, France, Italy, Spain, UK and Belgium. Data for flat and long products is supplied in each edition. Prices are displayed in Euros for easy comparison. Details of EU Average Steel Transaction Prices are incorporated together with regular forecasts. s STAINLESS STEEL REVIEW (monthly) This publication provides stainless steel price and market information for hot rolled plate, hot and cold rolled strip, plus two bar products. Two austenitic and ferritic grades are assessed in thirteen countries around the world covering 65% of global consumption. Details of basis price negotiations and alloy surcharge values, where applicable, are incorporated. Transaction price forecasts are included. Estimates of alloy surcharges three months ahead are also included in each issue. ps I wish to subscribe to the following publication(s). European European Supplement Stainless Developing Markets Multi-subscription discount rates available. Please contact our office or visit our website for furthur details. Please send to: Please Invoice: NAME NAME POSITION POSITION COMPANY COMPANY ADDRESS ADDRESS s Tel No: Fax No: 12 ORDER FORM - MONTHLY PUBLICATIONS Tel No: Fax No: YOUR VAT NUMBER (EU COUNTRIES ONLY) EUROPEAN STEEL REVIEW SUPPLEMENT (monthly) A sister publication to the European. The range of data is extended in this report. Price and market information is supplied for a further six nations, including - Denmark, Sweden, Finland, Holland, Austria and Norway. Euro comparisons are also included. Details of Nordic Average Steel Transaction Prices are incorporated together with regular forecasts. DEVELOPING MARKETS STEEL REVIEW (monthly) This is a new report from MEPS outlining steel market trends in the increasingly important emerging markets around the world. Each edition carries steel prices in eight countries - India, UAE, Turkey, South Africa, Russia, Ukraine, Mexico and Brazil. Details of eight steel prices in the flat and long products sectors are available. Comprehensive commentaries are included. ps s by MEPS. No information contained in this report may be used or