April 2013

Sheet prices move lower across key markets

With the exception of India, sheet prices have continued to fall for the second consecutive month as strong production levels have pushed prices down in most regions.

Positive changes in China may be an early leading indicator

Sheet prices have now flattened in China as market sentiment has shifted while inventories have stopped declining. 2013 Q2 activity will be supported by seasonal construction demand. Steel sheet prices(1) (early April)
(per metric tonne, unless stated) Local basis USA(2) - Midwest - Gulf Coast - West Coast Germany France Italy Spain UK transactions Brazil, export(3) CIS export(4) India - Mumbai(5) - Delhi(5) Japan, export(6) Far East: non-CIS origin(7) Far East: CIS origin(7) China(8) USD/st USD/st USD/st EUR/t EUR/t EUR/t EUR/t GBP/t USD/t USD/t INR/t INR/t USD/t USD/t USD/t RMB/t CRUspi sheet(9): 165.3 (-3.6) CR coil Local USD/t 709 709 750 590 570 548 540 460 42,500 42,500 4,780 782 782 827 768 742 713 703 703 640 779 779 715 660 650 771 HDG coil Local USD/t 763 763 820 612 585 551 545 490 44,500 44,500 5,010 841 841 904 797 762 717 709 749 815 815 805 730 nom 808 EG coil Local USD/t 823 637 610 581 570 515 907 829 794 756 742 787 -

CRUspi(8): 132.1 (+1.7)

HR coil Local USD/t 601 601 660 496 490 472 470 405 36,500 36,950 3,900

662 662 728 646 638 614 612 619 575 565 669 677 610 605 600 629

Notes: (1) Base prices, most common commercial quality, for new spot orders placed in the current month for forward delivery according to lead time, which will vary. A note on definitions is available from www.crugroup.com or by email. (2) FOB local mills. Local prices are $/s.ton. (3) FOB Brazil port. (4) FOB Black Sea port. (5) delivered. (6) FOB Japan port. (7) CFR East and South East Asian port. (8) ex-warehouse, Shanghai. Includes sales tax at 17%. (9) CRUspi is a weighted index of world steel sheet prices, April 1994 = 100. ForEx US Dollar: 0.768; 0.654; 98.9; RMB6.20; INR54.58 Euro: 0.852; 128.7

Page 1 of 20

2013 CRU International Limited confidential

www.crugroup.com

April 2013

Steel sheet products

www.crugroup.com

Summary
Sheet prices move lower across most markets
Prices have weakened across most sheet markets for the second consecutive month as high production levels have quickly limited any opportunity for mills to realize improved prices. As most regions experienced stronger demand early in 2013 Q1, a strong production response served to reverse this price trend. Based on CRU cost data, global mills took advantage of these trends to start the year with capacity utilisation running up towards 92% on the quarter. Mills were able to push production rates higher as base costs (raw materials, labour, etc.) were at the lowest level since 2010 Q2. Base costs into 2013 Q2, however, will increase by 13% as higher iron ore costs are finally realized by mills. Weak sentiment is often to blame for the current bout of price weakness as continued political and fiscal issues in Europe remain in the spotlight, especially after the banking fiasco in Cyprus. As personal and business assets were seized from Cyprus banks, overall business activity, specifically that of some key CIS sources of both supply and demand, may continue to be impacted by this sudden funding restraint. Weak sentiment also stems from North American mills as they continue to compete very aggressively. Seasonal demand in this market has been absent since the beginning of the year while flat rolled service centres have continued to destock from heavy end-of-year buys in order to get inventories more in line with this weaker demand environment. This intense competition was also seen in both the North East and South East Asian markets. Indeed, producing mills in these markets have pushed prices lower in a bid to secure orders. In Japan in particular, the continued race to debase the Yen has assisted exporters, though continued competition from both China and South Korea have limited the inital success of this fiscal strategy. Two positive areas are the Indian and Brazilian markets. While Indian prices rose slightly in April at the start of the new fiscal year, this market will struggle to move higher after mills cleared discounted inventory from their books. Brazil on the other hand, saw two rapid price increases on the back of continued domestic demand gains as well as a drastic reduction of imports due to government policy. Very low export trading activity in Brazil that followed these price increases is to blame for a slight reduction in April prices.

Trend change in China may boost prices

Sentiment in the Chinese market is now starting to turn after the persistent weakness seen since the end of the Chinese New Year. Chinese sheet prices have fallen due to lacklustre demand and high production and inventories after this holiday period. Over the past few weeks, however, inventories have continued to decline as stronger seasonal construction activity is now set to stimulate sheet demand. With automotive demand set to strengthen too, Chinese output may turn away from external markets, allowing global prices to strengthen.

CRU steel price index (CRUspi)* Steel sheet products

Index, April 1994 = 100 220 210 200 190 180 170 160

Data: CRU. Note: * weighted index of world steel sheet prices.

2013 CRU International Ltd confidential

Page 2 of 20

April 2013

Steel sheet products

www.crugroup.com

North America
Price becomes the weapon of choice to secure orders
Since the March 2013 edition of the Steel Sheet Products Monitor was published, sheet prices moved higher at a measured pace, with higher scrap prices assisting mills in realising stronger finished steel prices. Over the past couple of weeks, though, sheet prices have reversed course, along with scrap, and are now back near the prior months assessment. CRUs Apr 10 2013 price assessment has HR coil at $601/s.ton, CR coil at $709/s.ton and HDG coil at $763/s.ton ($705/s.ton base plus a $58/s.ton coating weight extra). Sheet prices have fallen over the past three weeks as buyers continue to only purchase their immediate needs, while lead times remain near physical minimums of only 2-3 weeks for HR coil at both EAF and integrated facilities. As detailed in Aprils Steel Sheet Products Market Outlook, destocking at service centres, on a limited scale, is allowing buyers to minimize forward purchases, in combination with short mill lead times, and utilize the producing mills as their warehouse. While flat rolled inventories at service centres have been worked down to ideal levels, they could continue to move lower as buyers have yet to anticipate any stimulus that would change their buying behaviour. While down-beat views are expected in this type of market, the constant negativity exhibited by buyers in the trade press is becoming its own influence, while some market players have yet to realize that these anonymous sources are likely talking their own book. Negative sentiment has recently been enhanced by the prospect of the 1.7 M s.ton Big River Steel Company, though this potential facility will not be operational until 2016. This negative sentiment has culminated into a declining market that is working to drive prices down, as buyers are able to shop their tons around to multiple mills. While steel demand is relatively inelastic, as lower prices do not produce higher demand, lower prices will allow an aggressive mill to secure tons for their order book at the expense of mills that either take a stand or do not yet feel comfortable with these lower prices. As sheet prices have pushed down to current levels, mills have been disciplined, as some buyers are reported to be holding out, offering substantial volume for prices that are well below the market. Perhaps this mill discipline is the first stage to creating an inflection point.
Service centre inventories have been taken down to ideal levels
Days of supply, flat rolled sheet 70 65 60 55 50 45 40 35 30

US domestic prices, including CRU's view of the current quarter

US, FOB mill, $/st 1,100 HR coil 1,000 900 800 700 600 500 CR coil HDG coil

10 10 11 11 11 11 12 12 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Data: MSCI, CRU

Data: CRU.

Page 3 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

Meanwhile, low sheet prices throughout the first quarter have yet to see a noticeable impact on sheet import arrivals as estimates for 2013 Q1 sheet imports are only 2% below arrivals for 2012 Q4 and 6% higher than import arrivals in 2012 Q1. What is happening on the import side is arrivals in 2013 Q2 are set to be noticeably lower than year-ago levels as weaker than expected demand along with adequate domestic supply will serve to abbreviate this normally strong seasonal period of imports.

Outlook: will seasonal construction become a demand driver?

The automotive market in North America continues to be a main driver of steel demand as March vehicle sales in the USA came in at a SAAR rate of 15.3 million units, slightly below Februarys 15.4 million rate. However, sales YTD are up 6.3% from 2012 while inventory levels have fallen to 60 days of supply from 65 days in February. As sales remain strong and inventory at the low end of ideal levels, the automotive industry continues to support sheet demand. While the automotive market continues to be a pillar of support for steel sheet, automakers are now seeing evidence that continued gains in construction are slowly filtering through to provide support for the automotive market. Indeed, continued year over year gains in both home construction and prices is not only lifting household wealth, it is now starting to stimulate light truck sales to contractors. However, until construction demand gains become more visible in mill order books, demand will remain limited.

Central & South America

Brazils production of flat steel plummets
Brazils demand remains strong as witnessed by its manufacturing PMI in expansion territory for its sixth consecutive month. Furthermore, domestic automobile production maintained strong output, with over 319,000 vehicles produced in March, a figure 39% higher m/m and 3.4% higher y/y, according to Anfavea, which indicated that domestic demand for steel sheet products remained firm. At the same time, production disruptions at major producers limited supply into the market. Semi finished products were the worst affected, with slab production decreasing in February by 12% y/y and 15% m/m to 360,000 t (see graph), according to Brazils Steel Institute (IABr). Brazilian mills are now focusing on their domestic customers to regain market share after imports were drastically reduced following a series of measures from the Brazilian government, such as increased import duties and the termination of tax benefits offered by some states. Exports have then plummeted as a consequence of the low availability of domestic material. Slab exports dropped by almost 40% y/y to 380,000 t in February. Finished steel products faced a similar scenario with very low trading activity as prices declined, following international trends. Export prices were lower by $5/t with HR coil falling to $575/t, FOB while CR coil export prices fell to $670/t, FOB.

Outlook: Domestic market is likely to remain firm

Brazils demand for steel sheet products is likely to remain firm through 2013, as the government has announced that it will maintain the current tax benefits on vehicle sales through the end of the year. However

2013 CRU International Ltd confidential

Page 4 of 20

April 2013

Steel sheet products

www.crugroup.com

competition will also be increased, as Gerdau is expected to commission its new flat rolling mill in the coming weeks. Meanwhile, export activity is set to stay quiet in the short term, as prices in the main international destinations are on a downward trend. Hence, Brazilians mills will continue to focus on the more profitable domestic market.
Brazil's slab output plummets due to disruptions at major producers
Brazilian slab production, '000 t 650 600 550 500 450 400 350 300

Brazilian export prices, including CRU's view of the current quarter

Brazil, FOB port, $/t 800 750 700 650 600 550 500

10 10 11 11 11 11 12 12 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Data: Brazil Steel Institute (IABr)

Data: CRU.

Europe
Poor sentiment leads to further price declines
Steel sheet prices in Europe have continued the slow, measured decline seen since prices reached a modest peak in February. HR coil fell by a further 9/t m/m in Germany to reach 496/t, with downstream products seeing smaller declines. In Italy, HR coil was down by 4/t m/m to 472/t, although here, downstream products saw slightly larger falls. The continued absence of the usual seasonal uptick in prices has a number of causes. Firstly, end-use demand remains poor throughout Europe. Automotive demand continues to be very slow, with European passenger car registrations down by almost 10% y/y over the first two months of the year. Even the recently successful German car industry saw a fall in production of 11% y/y in the first quarter of 2013, as tighter household budgets and weaker export demand took their toll. The construction sector remains weak due to credit problems and poor winter weather, and the weaker construction market is also impacting negatively on demand for domestic appliances. Intricately linked with poor end-use demand is the negative economic sentiment that currently pervades Europe. The lack of surefootedness of policy makers has been a recurring theme throughout the Eurozone crisis, and this was demonstrated once again by the imposition of a levy on small-scale depositors at Cypruss banks, which was swiftly followed by a hurried rethink of this policy. The levy on small scale bank deposits weakened confidence across Europe, with fears rising that any further bail-outs would also impose a levy on savers.

Page 5 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

As a result of weak demand and uncertain sentiment, steel sheet prices have fallen. Buying is particularly sparse as purchases made late in 2012 or in January this year are proving sufficient in the current weak demand environment. In Italy, for example, inventories are reportedly not only high but also, for material ordered in January, expensive compared with current market prices. Overall, there is an expectation on the part of customers that steel prices will fall further in the coming months. Nevertheless, steel producers are generally reluctant to reduce prices further, as there is little hope that increased sales volumes would result from a further fall in price. At the same time, margins have worsened compared to 2012 Q4 as the sharp increases in iron ore prices of a few months ago feed through into mills current profitability calculations. Developments at Ilvas plant at Taranto continue to be watched closely by the market. The plant is currently producing material at its No.3 and No.5 blast furnaces, with the No.1 furnace stopped. The Italian high court is due to rule imminently on the legitimacy of the Save Ilva law passed by the previous government, which allowed important facilities of national interest to continue to manufacture and sell their products despite any intervention by the courts. If the law is ruled unconstitutional, the plant may be forced to close until environmental improvements are carried out. This would tighten supply, although even this level of potential capacity reduction may not result in much upward movement of prices in the current depressed market conditions.

Outlook: market expected to weaken further amid poor demand

Sentiment remains poor in the market, and few participants are now expecting any rise in prices before the summer holiday period. With Slovenia being talked up as a possible future flashpoint for the Eurozone debt crisis, instability is set to remain, while continued austerity measures will keep sentiment subdued and ensure that end-use demand for steel sheet products remains slow. Even the relatively stronger German market will be affected, as the weak Yen provides fiercer competition from Japan for German manufacturing exports in Asian markets, while poor demand persists in Europe. Therefore, market weakness is set to remain in the near-term.
EU27 passenger car registrations are down 10% y/y in Jan-Feb 2013
EU27 new passenger car registrations, m units 2.0 1.8 1.6 1.4 1.2 1.0 0.8 0.6 0.4 0.2 0.0 Passenger car registrations

German domestic prices, including CRU's view of the current quarter

Germany, parity point, /t 800 HR coil 700 CR coil HDG coil

600

500

400

10 10 11 11 11 11 12 12 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Data: ACEA.

Data: CRU.

2013 CRU International Ltd confidential

Page 6 of 20

April 2013

Steel sheet products

www.crugroup.com

CIS
Amid stable export demand, CIS mills could not avoid price declines
The downward correction in CIS steel sheet export prices continued into March. While demand in the main export markets Turkey, the MENA region and Europe was stable, Russian and Ukrainian producers still could not avoid up to $20/t m/m price reductions for HR coil to attract buyers. For CR coil, demand was weaker and this eventually translated into deeper $30/t m/m fall in prices. The price declines hardly affected the generally positive market sentiment, however, as producers main aim was to get all April production volumes fully booked by the end of March. Amid growing export competition and declining export sales in the beginning of the year (see chart), maintaining export market share became one of the priorities for CIS mills. Among the positive developments we saw most recently was increased demand from European customers who, after staying on the sidelines in January and February, returned to the market in March and placed orders for CIS-origin steel sheet. While the downward pressure clearly persists in export pricing, the domestic market situation appears to be more uncertain. Traditionally at this time of the year, the seasonal revival in demand should be on the doorstep, but the March cold weather had a negative effect on market sentiment as it has not allowed traders to dispose of their steel stocks rapidly and therefore accelerated their offers for new production. As a result, producers steel sheet prices remain largely unchanged from last month, with HR coil priced at RUB21,600/t, CPT Central Russia.

Outlook: more discounts possible for CIS-origin steel sheet

The first offers for May production volumes for both domestic and export markets will be announced next week. We expect CIS producers to try their best to keep prices stable; however, with competitive offers from European and Chinese producers for CIS target markets, it will be a difficult task. Therefore we do not reject the possibility of further downward correction in steel sheet export prices.

Russian steel sheet exports eased in February

Russian steel sheet exports, '000 t 500 450 400 350 300 250 200 150 100 50 0 HR sheet CR sheet

CIS export prices, including CRU's view of the current quarter

CIS, FOB Black Sea port, $/t 900 HR coil 800 700 600 500 400 CR coil

10 10 11 11 11 11 12 12 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Data: CRU, GTIS.

Data: CRU.

Page 7 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

China
Is the spring downturn coming to an end?
The Chinese steel market stayed in a downward trajectory, with latest CFLP manufacturing PMI in steel falling to 44.6 versus 58.9 in February. The March readings are especially depressed in new orders and production indicators, posting 30% and 35% declines, respectively. Although we have seen higher overall manufacturing PMI at 50.9 and better performance in downstream sectors such as automotive and heavy machinery, it is not easy to consume the amount of output resumed in Q1 due to the overestimation from domestic mills after the Chinese New Year holiday. Therefore, market inventories peaked in the absence of enough domestic consumption to support higher output levels, at least in the immediate term. Crude steel output in March remained above the 2 Mt/day level, according to preliminary figures from CISA. Meanwhile, most flat product exports fell in February as export markets remained weak elsewhere alongside increased protectionist measures. This quiet spell has resulted in a loss of confidence from traders. As the traders purchased material and hoped for higher prices, they now need to clear some of their stocks at a low price to retrieve capital. This action, accompanied by a relatively loose supply/demand balance, has kept spot sheet prices falling. Our latest assessments show that Chinese steel sheet prices fell by RMB200/t for HR coil to RMB3,900/t, with CR coil down by RMB120/t to RMB4,780/tonne, and HDG coil down by RMB40/t to RMB5,010/t. Pricing strategies were mixed from different steel mills, which further muddied the situation, forcing some buyers to retain a wait-and-see attitude until the picture becomes clearer in April.

Outlook: demand and prices to recover in Q2

The latest statistics provided welcome news with signs of lower inventories, while spot prices have stopped falling in the past week, and sentiment has been raised with the resumption of seasonal construction on improved weather conditions. We continued to anticipate a seasonal recovery, supported by our higher raw material price forecasts. Nevertheless, downside risk remains, as the construction market will face more challenges due to government restrictions on real estate.
CSteel sheet exports dropped as
Chinese steel sheet trade, Mt 4.0 Import 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 2008 2009 2010 2011 2012 2013 Export

overseas environment deteriorated

China domestic prices, including CRU's view of the current quarter

China, ex-warehouse, RMB/t 6,500 HR coil 6,000 5,500 5,000 4,500 4,000 3,500 CR coil HDG coil

10 10 11 11 11 11 12 12 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Data: NBS.

Data: CRU.

2013 CRU International Ltd confidential

Page 8 of 20

April 2013

Steel sheet products

www.crugroup.com

North East Asia

Competition intensifies
Regional sheet product producers continue to experience difficult market conditions this month, despite a further uptick in manufacturing PMIs. Japanese mills are hungry for orders and saw intake volumes continue to contract in February. Anecdotal evidence suggests domestic flat products demand remains weak, at least in to comparison to that for long products. This is despite the fact that Japan saw its March manufacturing PMI rise above 50 for the first time since May 2012. Mills here have responded to weak demand by cutting BOF crude steel and steel sheet products output, with a corresponding fall in both sheet stock levels and stock-toshipment ratios, according to the latest data (see chart). While sheet demand is not as strong as would normally be expected at this time of the year, it is firmer than the last quarter of 2012. To that extent, downward price movements witnessed across East Asia in the last few weeks have also been a function of excess supply. In the last month there has been a further escalation in competitive intensity between Japanese, South Korean, Taiwanese and Chinese suppliers. While domestic prices are largely unmoved on the month, the considerably weaker Japanese Yen has encouraged Japanese exporters to respond to lower Chinese export prices into the region. Buyers are certainly expecting lower prices, and for commodity grade HR coil, bids much above $600/t FOB are largely being rejected. Japanese suppliers are also facing the prospect of having to reduce US dollar-denominated CR coil prices in the face of more competitive pricing from mills in South Korea. Despite offers around $730/t CFR for CR coil, counter bids even lower than this level are expected. Again, despite the hope offered by better PMI data, the domestic South Korean supply/demand balance is weak, and mills are looking for a home for their production in overseas markets. Many customers for North East Asian mills sheet exports are sitting on their hands, however, observing falls in regional scrap prices and waiting for domestic Chinese sheet prices to bottom out.

Outlook: price outlook bleaker

There are a number of reasons to expect improvement in Japanese domestic sheet demand. Recently announced QE measures look likely to drive further depreciation in the yen in the short term, improving export prospects for both domestic consumers of steel sheet and for steel producers. Meanwhile, domestic inventories of HR, CR and coated sheet products are not excessive in either volume or months shipments terms. For these reasons, we maintain the view that apparent consumption of steel sheet will firm in Q2. Given ongoing supply availability and lower scrap prices this may not, however, translate to significant strengthening in prices.
Data: JISF.

Japanese sheet stocks are at acceptable levels

LHS: stock level, kt; RHS: stock/shipments, months 6000 5000 4000 3000 2000 1000 0 HR sheet CR sheet Coated sheet Total sheet stock/shipments 2.2 2.0 1.8 1.6 1.4 1.2 1.0

Page 9 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

South East Asia

Prices soften for the second consecutive month
Far East import prices of sheet products have softened for the second consecutive month due to sluggish regional demand and oversupply in export markets, leading suppliers to slash their export prices in a bid to increase their sales volumes. For instance, HR coil prices fell to $605/t by the first week in April, a decline of $25/t from our month-ago assessment. Similarly, CR coil prices (for non-CIS origin material) have also fallen by $25/t from month-ago levels, to $660/t (see chart). Behind these price falls, poor market sentiment has remained a drag on demand, particularly in Malaysia where the forthcoming general election has led to a halt in approvals of new projects and increased uncertainty around existing projects. On the other hand, market sentiment has improved in the Philippines after the countrys credit status was upgraded to investment grade for the first time in its history. Meanwhile, Indonesia has implemented anti-dumping duties ranging from 7% to 55.6% on imports of CR sheet from China, Japan, South Korea, Taiwan and Vietnam, effective from 19 March 2013. Nippon Steel & Sumitomo Metal Corp (NSSMC), whos supply now attracts 55.6% duties, has suspended its CR sheet exports to Indonesia, and is now seeking the help of the Japan External Trade Organisation to negotiate with the Indonesian government on reducing the anti-dumping duty. However, the company has an option to export from its subsidiary, Siam United Steel in Thailand, in the short term. We judge that this duty has now also given greater importance to NSSMC and PT Krakatau Steels announced joint venture plan (51:49 respective holdings) to produce CR sheets in Indonesia.

Outlook: prices to stabilise

We believe these additional duties will impact Japanese auto producers in Indonesia in particular: these customers did account for a large share of automotive grade Japanese CR sheet exports. Meanwhile, it is estimated that Japanese cars enjoy around 90% market share in Indonesia, and the presence of Japanese auto producers here has been on the rise. In terms of sheet prices, we anticipate these will firm next month due to a seasonal uptick in demand, though this will then wane due to the onset of the rainy season.
HRC & CRC prices declined in the second consecutive month
Far East HRC & CRC import prices, % m/m change 8% 6% 4% 2% 0% -2% -4% -6% -8% -10% -12%
700 600 500 800

Far East import prices, including CRU's view of the current quarter
CFR East & South East Asia, $/t 1,000 HR coil 900 CR coil HDG coil

HRC

CRC

10 10 11 11 11 11 12 12 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Data: CRU.

Data: CRU.

2013 CRU International Ltd confidential

Page 10 of 20

April 2013

Steel sheet products

www.crugroup.com

India
After successive discounts, mills increase prices in April
The fiscal year-end figures for automotive sales show the poor health of this industry. Affected by high fuel and financing costs as well as production strikes, cars sales in India have seen a y/y decline for the first time in 10 years. Vehicle sales fell for the fifth consecutive month in March as demand for new cars remained weak, despite incentive schemes offered by automotive companies. While passenger car sales were hit by high fuel prices, weak industrial activity and high diesel costs have also limited commercial vehicle sales. Demand for steel sheet products from other sectors has been weak as well. However, despite suppressed demand, steel mills have attempted a price increase across all steel sheet products in the range of INR1,2001,500/t in April. According to steel mills, this increase was required to meet rising costs and reverse market sentiment as year-end discounts due to low demand, high stocks and year-end sales pressure resulted in low offer prices in March. Mills are not confident that the entire increase will be passed through, however, as demand is low and customer enquiries are limited. Also, falling international offers are acting against the price increases. With rising domestic prices and lower import offers, the price differential is closing. Chinese offers are now at around $595/t CFR while import equivalent offers from domestic mills are at $570/t. Large re-rollers who export substantial quantities are looking for offers from export markets as they can use import licenses against the quantities exported, working to reduce the overall cost of imported materials. Falling international prices have also resulted in declining export offers from Indian mills.

Outlook: mills not hopeful of another price increase next month

Growth in demand for steel sheet products appears unlikely in the coming months as none of the end use sector has seen any major changes that can boost industrial activity. Threats from imported material are also on the rise due to falling international prices. Though most of the mills offering non-alloy material will nolonger be able to supply material in India due to the strict adherence of BIS standards, the threat from low cost Chinese offers will continue to exist as they sell boron-added alloy grade materials. Domestic mills are therefore not expecting the prices to go up any further next month. At best, if the entire proposed increase of April is not accepted during the month, mills hope the remaining balance can be passed on in May.
Automotive sales turn negative first time in past ten years
MarutiSuzuki monthly sales remain subdued '000 140000 120000 100000 80000 60000 40000 20000 0

Indian domestic prices, including CRU's view of the current quarter

India, delivered, INR/t 55,000 HR coil 50,000 45,000 40,000 35,000 30,000 25,000 CR coil HDG coil

10 10 11 11 11 11 12 12 12 12 13 13 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2

Data: MarutiSuzuki India Ltd. website

Data: CRU.

Page 11 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

Raw materials and slab

Key raw materials prices
Coke prices
Chinese export price*, FOB, index, January 2004 = 100 240 220 200 180 160 140 120 100 Chinese export price, FOB

US factories bundles prices

US factory bundles price, del. Chicago, index, January 2004 = 100 260 240 220 200 180 160 140 120 Chicago, factory bundles, del.

Data: CRU.

Data: CRU.

Slab market developments

Responding to softening flat products prices, slab prices have also come under downward pressure recently in major markets. The weak demand and poor market sentiments in slab importing regions have also contributed to the recent price softening. Production at two major Brazilian slab producers has recently been disrupted due to a fire and equipment failure, causing further tightening in the supply of merchant slab. Looking at the trade data, in line with weak demand the total slab exports from Brazil also declined by around 27% in the first two months of 2013 compared to the same period last year. Given the weak demand in the export market, Brazilian merchant slab exports prices in April has declined to $528/t FOB compared to $535/t FOB last month. Similarly, CIS exports of total slab have also declined by around 10% during the first two months of the current year on y/y basis, a sign of weak global demand. Slab market in the CIS region remained quiet so far while prices have declined by $15/t in April, reaching $510/t. However, the offer prices have remained high reaching $560/t CFR Far East with limited buyer response. Given the weak demand for flat steel products, most buyers in the Far East market have continued to follow the wait-and-see attitude. Moving forward, we anticipate that merchant slab prices are likely to recover soon due to the approaching seasonal demand upturn.
North America USA imp. Europe EU CIS CFR(1)

Global merchant slab prices

(USD/t) Feb 578 2013 Mar 578 Apr 573

exp. exp.

FOB(2) FOB(3)

nom 495

nom 525

nom 510

Far East E & SE Asia imp. Latin America Brazil exp.

CFR(4)

535

550

525

FOB

520

535

528

Data: CRU. Notes: (1) Gulf Coast, (2) ARA port, (3) Black Sea port, (4) East & South East Asian port.

2013 CRU International Ltd confidential

Page 12 of 20

April 2013

Steel sheet products

www.crugroup.com

Industry news
Capacity expansions
US Steel, a major Pittsburgh, US-based steelmaker, is to remain in Slovakia for at least the next 5 years and maintain employment levels at 11,000, following environmental and energy-related concessions that have been offered by the Slovak government. US Steel will use the concessions to help offset the 388m ($500m) it needs to spend so that it can comply with EU rules by 2016. South Korean steel producer Posco has announced plans to construct a continuous galvanising line in the South Thailand district of Rayong, the centre of Thailands automotive industry. The facility is expected to have a capacity of 400,000 t/y, be commissioned by the end of 2015 and supply Thailands automobile industry and export to other Southeast Asian markets. NS BlueScope Coated Products, a joint venture between Japans Nippon Steel & Sumitomo Metal Corporation (NSSMC) and Australias BlueScope Steel, has officially been launched. The JV will supply hot-dip galvanised sheets, painted sheets, and roll-formed building products to white goods manufacturers and constructers in the Asean and US markets, and with the backup of 29 plants in 7 countries, NSSMC said that the JV will allow for quicker responses to rapidly expanding demand for coated products in the building and construction sectors. Under the terms of the agreement, NSSMC will pay BlueScope $540m for a 50% stake in its coated steel products business. Bangkok Eastern Coil Centre, the Thai subsidiary of Nippon Steel Trading has announced that it is to expand its capacity in order meet growing demand from Thailands automotive industry. The company plans to increase monthly output by 2,000 t/m to total 38,000 t/m in early 2014, through the addition of a range of equipment including slitters and levellers.

Mergers and acquisitions

Gerdau, a Brazilian steelmaker, has announced it has acquired the remaining stake of a joint venture with Kalyani Steels of India. The terms of the sale were not announced. The facility, located in the state of Andhra Pradesh, has a capacity of 300,000 t/y, and is predominately focused on producing steel products for the automotive market. Samuel, Son & Co., a Canadian steel processor and distributor, is to acquire the assets of Wilkinson, a steel service company based in Western Canada. Wilkinsons product offerings include plate, bars, structurals, galvanising, painted and coated flat-rolled carbon steel products. The acquisition is expected to close in late April 2013 following regulatory approval. Uttam Galva Metallics, an Indian cold roller, is expected to soon begin negotiations to acquire a mill owned by Global Steel Philippines. The hot-rolling mill is located in Iligan in the Southern Philippines, has a capacity of 1.5 Mt/y and has been closed for some time.

Page 13 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

Gross production and consumption of hot-rolled steel sheet

(Mt) North America Gross Production 2011/10 y/y ch USA Canada Mexico Total USA Canada Mexico Total 11.5% 2.2% 8.8% 10.3% 12.2% -1.2% 10.6% 10.7% 31.1% -0.2% -4.7% -52.3% Western Europe - France - Germany - Italy - Spain - UK Eastern Europe - Poland Total Europe Western Europe - France - Germany - Italy - Spain - UK Eastern Europe - Poland Total Europe 0.2% -0.6% -2.8% 17.8% -7.1% -5.5% 13.4% 11.7% 2.5% 1.7% -0.3% -1.7% 16.4% -2.4% 2.9% 11.7% 12.4% 3.6% 26.8% -7.6% -10.3% 0.9% China Japan Korea Taiwan Asean Total China Japan Korea Taiwan Asean Total 10.9% -6.9% 11.1% 4.5% 7.5% 7.4% 13.8% -6.1% 0.4% -5.6% 8.4% 8.3% -64.1% 3.5% -0.2% -27.1% 5.5% Q1 14.031 1.662 1.506 17.200 14.373 1.555 1.701 17.628 (0.428) 3.853 4.115 (0.262) 13.967 1.605 4.219 2.055 0.851 0.480 3.829 0.442 17.796 13.864 1.783 4.103 2.192 1.032 0.536 4.297 0.727 18.161 (0.366) 7.351 5.906 1.445 47.083 10.836 7.764 2.499 1.377 69.559 47.445 9.008 7.469 1.970 3.323 69.213 0.346 10.709 12.247 (1.539) 126.467 2012 Q2 13.635 1.667 1.540 16.843 14.071 1.543 1.715 17.329 (0.487) 3.986 4.174 (0.187) 14.618 1.626 4.671 2.028 0.917 0.716 3.853 0.409 18.471 14.941 1.857 4.618 2.158 1.129 0.827 4.380 0.659 19.321 (0.850) 6.577 5.012 1.565 50.338 10.616 8.069 2.657 1.377 73.058 50.673 8.707 7.858 2.015 3.211 72.464 0.594 10.872 12.336 (1.464) 129.807 Q3 12.901 1.652 1.557 16.111 13.275 1.546 1.718 16.539 (0.428) 3.836 4.172 (0.336) 14.019 1.508 4.712 1.910 0.601 0.686 3.653 0.405 17.672 14.072 1.457 4.684 2.296 0.773 0.660 4.369 0.554 18.441 (0.769) 6.807 5.424 1.383 48.396 11.081 8.068 2.447 1.377 71.369 48.741 9.059 7.607 1.895 3.423 70.724 0.644 10.716 12.164 (1.448) 126.511

(1)

Q4 11.833 1.741 1.704 15.278 12.203 1.669 1.822 15.695 (0.416) 3.637 3.969 (0.332) 13.427 1.400 4.478 1.635 0.487 0.686 3.387 0.314 16.815 13.426 1.082 4.404 1.779 0.768 0.684 3.949 0.621 17.375 (0.560) 6.263 5.119 1.144 50.381 10.562 7.901 2.852 1.377 73.073 50.651 8.402 7.448 2.322 3.442 72.264 0.808 11.223 12.784 (1.560) 126.289

Year 52.401 6.723 6.308 65.431 53.922 6.314 6.955 67.191 (1.760) 15.313 16.429 (1.116) 56.031 6.140 18.080 7.628 2.856 2.569 14.722 1.569 70.753 56.303 6.179 17.808 8.425 3.703 2.707 16.995 2.562 73.298 (2.545) 26.998 21.461 5.537 196.198 43.095 31.802 10.456 5.508 287.059 197.510 35.175 30.381 8.201 13.399 284.666 2.392 43.520 49.531 (6.011) 509.074

2012/11 y/y ch 2.4% 6.4% 0.0% 2.5% 2.2% 7.0% 5.5% 3.0% 22.6% 0.8% 3.5% 62.0% -11.9% -12.9% -8.2% -25.5% -17.0% 4.2% -3.6% -5.2% -10.3% -15.0% -24.9% -12.2% -30.2% -6.3% 8.1% -0.7% -0.7% -12.0% -42.7% -0.5% 7.0% -21.6% 8.0% 2.5% 6.5% 7.6% -2.4% 6.8% 8.0% -1.1% 5.5% 7.8% 3.6% 6.3% 121.1% 7.9% 11.8% 51.8% 3.0%

2013 Q1 12.890 1.854 1.747 16.490 13.260 1.768 1.880 16.907 (0.417) 3.892 4.161 (0.269) 13.054 1.567 4.216 1.274 0.773 0.557 3.568 0.440 16.622 12.891 1.531 4.024 1.374 1.024 0.574 4.164 0.685 17.055 (0.433) 6.427 5.123 1.304 52.444 10.577 6.722 2.693 1.407 73.842 52.747 8.189 6.537 2.119 3.547 73.139 0.703 10.587 12.126 (1.539) 127.861

2013/12 y/y ch -8.1% 11.5% 16.0% -4.1% -7.7% 13.7% 10.5% -4.1% -2.7% 1.0% 1.1% 2.9% -6.5% -2.4% -0.1% -38.0% -9.1% 15.9% -6.8% -0.4% -6.6% -7.0% -14.1% -1.9% -37.3% -0.8% 7.1% -3.1% -5.7% -6.1% 18.5% -12.6% -13.3% -9.8% 11.4% -2.4% -13.4% 7.7% 2.1% 6.2% 11.2% -9.1% -12.5% 7.6% 6.8% 5.7% 103.0% -1.1% -1.0% -0.0% 1.1%

Gross Consumption

Implied net exports Latin America Gross Production Gross Consumption Implied net exports Europe Gross Production

Gross Consumption

Implied net exports CIS Gross Production Gross Consumption Implied net exports Asia Gross Production

Gross Consumption

Implied net exports Other world Gross Production Gross Consumption Implied net exports Total world(2) Gross Production

Gross Consumption 5.6% 127.270 130.637 127.464 127.205 512.576 3.2% 128.513 1.0% Data: CRU Note: (1) Hot-rolled sheet is defined as coil, sheet and strip less than 4.75mm thick. (2) Global production and consumption values may not be exactly equal due to differences in timing and reporting authority relating to trade data.

2013 CRU International Ltd confidential

Page 14 of 20

April 2013

Steel sheet products

www.crugroup.com

Gross production and consumption of cold-rolled steel sheet

(Mt) North America Gross Production 2011/10 y/y ch USA Canada Mexico Total USA Canada Mexico Total 7.7% 1.8% 8.8% 7.3% 7.3% -0.2% 1.6% 6.0% -27.2% 1.1% -5.6% -37.3% Western Europe - France - Germany - Italy - Spain - UK Eastern Europe - Poland Total Europe Western Europe - France - Germany - Italy - Spain - UK Eastern Europe - Poland Total Europe -2.5% -5.7% -3.5% 15.3% -11.8% 1.1% 9.4% -3.4% -0.9% -1.5% -4.0% -1.8% 14.6% -8.3% -0.2% 9.6% 4.6% 0.4% 52.1% 2.8% 10.0% -19.4% China Japan Korea Taiwan Asean Total China Japan Korea Taiwan Asean Total 12.8% -8.5% -0.1% -1.8% -1.5% 4.8% 10.2% -8.5% -1.1% -4.1% -1.9% 3.9% 26.6% 9.8% 10.8% 16.7% 4.1% Q1 7.799 0.761 0.654 9.214 7.836 0.824 0.880 9.540 (0.326) 2.134 2.521 (0.388) 8.486 1.172 2.355 1.030 0.591 0.421 1.711 0.219 10.198 8.249 1.270 2.221 1.056 0.712 0.483 2.276 0.359 10.524 (0.326) 2.895 2.379 0.516 18.361 6.280 4.755 1.238 1.149 31.782 18.685 5.257 3.657 0.769 1.954 30.322 1.460 4.897 5.573 (0.677) 61.120 2012 Q2 7.569 0.799 0.669 9.036 7.566 0.878 0.931 9.375 (0.339) 2.388 2.707 (0.318) 9.121 1.187 2.751 1.026 0.633 0.628 1.730 0.203 10.851 8.884 1.254 2.630 0.986 0.743 0.660 2.363 0.388 11.248 (0.397) 2.913 2.324 0.589 19.503 6.074 5.050 1.397 1.149 33.172 19.476 5.105 3.995 0.880 2.059 31.515 1.657 5.420 6.440 (1.020) 63.781 Q3 6.838 0.780 0.676 8.294 6.879 0.857 0.905 8.641 (0.346) 2.374 2.792 (0.418) 8.827 1.101 2.838 0.965 0.522 0.601 1.590 0.201 10.418 8.624 1.145 2.757 1.020 0.618 0.662 2.157 0.347 10.782 (0.364) 3.020 2.436 0.584 18.889 6.371 4.936 1.285 1.149 32.630 19.114 5.317 3.875 0.793 2.120 31.218 1.412 5.629 6.501 (0.872) 62.365

(1)

Q4 6.211 0.801 0.740 7.751 6.272 0.888 0.939 8.099 (0.348) 2.384 2.722 (0.338) 8.303 1.022 2.495 0.819 0.493 0.601 1.476 0.156 9.779 8.104 1.091 2.362 0.877 0.613 0.618 1.978 0.287 10.083 (0.303) 2.836 2.273 0.563 20.407 5.917 4.934 1.388 1.149 33.795 20.312 5.013 3.806 0.860 2.149 32.140 1.655 5.485 6.342 (0.857) 62.030

Year 28.417 3.141 2.738 34.296 28.554 3.447 3.654 35.655 (1.359) 9.280 10.742 (1.462) 34.738 4.482 10.439 3.840 2.239 2.252 6.508 0.779 41.245 33.862 4.760 9.970 3.938 2.686 2.424 8.775 1.381 42.636 (1.391) 11.664 9.412 2.252 77.159 24.641 19.675 5.308 4.595 131.379 77.588 20.692 15.333 3.301 8.282 125.195 6.184 21.431 24.856 (3.425) 249.296

2012/11 y/y ch 6.3% 15.0% 0.0% 6.5% 6.8% 15.3% 8.8% 7.8% 56.7% 3.7% 6.2% 25.0% -9.9% -9.6% -7.8% -18.8% -14.2% 4.2% -3.8% -5.2% -9.0% -11.2% -11.3% -6.6% -24.8% -15.4% 11.9% -1.5% -4.8% -9.3% -19.1% 1.7% 1.4% 3.0% 6.2% -0.4% 2.7% 1.2% 1.7% 4.0% 5.3% 3.2% 0.7% -5.7% 5.0% 4.0% 2.8% 13.3% 10.8% -2.6% 2.5%

2013 Q1 7.148 0.793 0.758 8.699 7.210 0.876 0.968 9.054 (0.355) 2.433 2.810 (0.376) 7.877 1.144 2.360 0.477 0.585 0.488 1.587 0.218 9.464 7.604 1.200 2.255 0.579 0.664 0.507 2.108 0.340 9.713 (0.249) 2.503 1.906 0.597 19.246 5.665 4.644 1.405 1.172 32.131 19.441 4.658 3.475 0.885 2.151 30.610 1.522 4.524 5.386 (0.862) 59.754

2013/12 y/y ch -8.3% 4.1% 16.0% -5.6% -8.0% 6.2% 10.0% -5.1% 8.8% 14.0% 11.4% -2.9% -7.2% -2.4% 0.2% -53.7% -1.0% 15.9% -7.3% -0.4% -7.2% -7.8% -5.5% 1.6% -45.2% -6.7% 4.9% -7.4% -5.4% -7.7% -23.9% -13.5% -19.9% 15.5% 4.8% -9.8% -2.3% 13.5% 2.0% 1.1% 4.0% -11.4% -5.0% 15.1% 10.1% 0.9% 4.2% -7.6% -3.4% 27.4% -2.2%

Gross Consumption

Implied net exports Latin America Gross Production Gross Consumption Implied net exports Europe Gross Production

Gross Consumption

Implied net exports CIS Gross Production Gross Consumption Implied net exports Asia Gross Production

Gross Consumption

Implied net exports Other world Gross Production Gross Consumption Implied net exports Total world(2) Gross Production

Gross Consumption 3.9% 60.860 63.609 62.370 61.658 248.497 2.6% 59.477 -2.3% Data: CRU Note: (1) Cold-rolled sheet is defined as cold reduced coil, including electrical sheet. (2) Global production and consumption values may not be exactly equal due to differences in timing and reporting authority relating to trade data.

Page 15 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

Production and consumption of coated steel sheet

(Mt) North America Production 2011/10 y/y ch USA - of which HDG - of which EG Canada Mexico Total USA - of which HDG - of which EG Canada Mexico Total 10.6% 18.6% -8.2% 2.6% 8.8% 9.6% 8.9% 17.4% -13.1% 13.1% -10.4% 6.5% -16.6% 9.1% -1.6% -22.2% Western Europe - of which HDG - of which EG - France - Germany - Italy - Spain - UK Eastern Europe - Poland Total Europe Western Europe - of which HDG - of which EG - France - Germany - Italy - Spain - UK Eastern Europe - Poland Total Europe 0.9% 3.3% 0.6% -2.7% -3.7% 23.5% 8.4% -3.0% 10.9% -0.4% 2.1% 4.6% 5.9% -1.3% 2.1% 4.7% 10.5% 9.2% -4.5% 6.3% 9.4% 4.9% 324.9% 9.8% 20.1% 59.6% China Japan - of which HDG - of which EG Korea Taiwan Asean Total China Japan - of which HDG - of which EG Korea Taiwan Asean Total 10.0% -7.2% -5.5% -16.5% -1.6% 0.3% 10.4% 3.8% -3.4% -2.1% -2.2% 3.1% 9.2% -8.9% 8.1% -0.4% 23.0% 7.5% 6.6% 3.4% 4.8% Q1 5.173 4.279 0.369 0.603 0.373 6.149 5.332 4.424 0.287 0.723 0.768 6.822 (0.673) 1.275 1.797 (0.521) 7.288 5.562 0.868 1.050 1.879 0.918 0.565 0.277 1.194 0.121 8.482 6.044 4.629 0.620 1.029 1.941 0.620 0.860 0.551 2.107 0.530 8.151 0.331 1.185 1.557 (0.373) 10.409 3.777 2.862 0.485 2.384 0.659 1.053 18.282 8.587 2.557 2.137 0.191 1.281 0.214 2.164 14.804 3.478 2.877 3.620 (0.743) 38.251 2012 Q2 4.994 4.091 0.355 0.656 0.381 6.032 5.293 4.390 0.279 0.722 0.821 6.836 (0.804) 1.399 1.877 (0.477) 7.755 5.908 0.937 1.063 2.317 0.901 0.584 0.398 1.187 0.112 8.942 6.794 5.163 0.747 0.942 2.430 0.635 0.892 0.672 2.197 0.614 8.991 (0.049) 1.237 1.977 (0.740) 12.226 3.629 2.717 0.501 2.640 0.692 1.053 20.239 9.776 2.297 1.882 0.203 1.541 0.237 2.418 16.268 3.971 2.947 3.840 (0.892) 40.797

(1)

Q3 4.473 3.630 0.309 0.646 0.386 5.505 4.730 3.872 0.234 0.632 0.818 6.180 (0.675) 1.288 1.881 (0.593) 7.200 5.456 0.908 0.986 2.310 0.842 0.457 0.378 1.092 0.111 8.292 6.340 4.819 0.712 0.851 2.449 0.767 0.749 0.592 1.925 0.496 8.265 0.027 1.323 2.113 (0.790) 11.536 3.823 2.862 0.529 2.507 0.613 1.053 19.533 9.681 2.413 1.996 0.183 1.342 0.163 2.413 16.011 3.521 2.993 3.865 (0.873) 38.932

Q4 4.119 3.355 0.310 0.652 0.422 5.193 4.398 3.583 0.223 0.662 0.820 5.880 (0.687) 1.296 1.725 (0.430) 6.944 5.308 0.841 0.916 2.124 0.740 0.420 0.378 1.012 0.086 7.956 5.953 4.596 0.644 0.763 2.204 0.625 0.609 0.608 1.889 0.436 7.842 0.114 1.155 1.737 (0.581) 11.238 3.610 2.759 0.461 2.552 0.646 1.053 19.099 9.288 2.318 1.937 0.165 1.386 0.217 2.455 15.664 3.435 2.874 3.708 (0.834) 37.573

Year 18.760 15.355 1.343 2.557 1.562 22.879 19.753 16.269 1.022 2.738 3.227 25.718 (2.839) 5.258 7.279 (2.021) 29.186 22.234 3.554 4.015 8.630 3.401 2.026 1.431 4.485 0.429 33.672 25.131 19.206 2.723 3.586 9.024 2.647 3.110 2.423 8.117 2.077 33.248 0.424 4.900 7.384 (2.484) 45.409 14.840 11.200 1.977 10.082 2.610 4.213 77.154 37.333 9.585 7.952 0.742 5.551 0.830 9.450 62.748 14.406 11.691 15.033 (3.343) 155.553

2012/11 y/y ch 7.6% 10.2% -3.3% 21.3% 0.0% 8.4% 11.0% 13.5% -2.8% 4.8% 12.6% 10.5% 30.9% 7.3% 8.4% 11.4% -11.1% -11.2% -14.4% -9.6% -7.1% -24.4% -18.8% 4.2% -3.7% -5.2% -10.1% -17.4% -18.5% -18.4% -14.3% -9.6% -41.3% -19.7% 7.4% -3.7% -4.3% -14.4% n.m. 3.0% 12.4% 37.4% 21.7% -0.9% 3.1% -14.5% 7.7% -5.6% 1.5% 12.5% 26.0% 2.1% 4.5% -5.8% -1.5% -7.8% 8.8% 15.7% 0.4% -0.9% -1.0% -1.5% 4.7%

2013 Q1 4.731 3.938 0.328 0.639 0.433 5.803 5.010 4.166 0.242 0.641 0.840 6.492 (0.689) 1.313 1.730 (0.417) 6.727 5.065 0.822 1.024 1.884 0.611 0.569 0.301 1.076 0.110 7.803 5.898 4.517 0.664 0.879 2.082 0.603 0.800 0.541 1.910 0.470 7.807 (0.005) 0.999 1.492 (0.493) 10.883 3.540 2.736 0.411 2.424 0.628 1.072 18.547 9.123 2.356 1.981 0.167 1.217 0.188 2.453 15.338 3.209 2.817 3.622 (0.805) 37.282

2013/12 y/y ch -8.6% -8.0% -11.0% 6.0% 16.0% -5.6% -6.0% -5.8% -15.7% -11.4% 9.5% -4.8% 2.4% 3.0% -3.7% -20.1% -7.7% -8.9% -5.2% -2.4% 0.3% -33.5% 0.6% 8.8% -9.9% -8.7% -8.0% -2.4% -2.4% 7.1% -14.5% 7.3% -2.7% -6.9% -1.8% -9.4% -11.4% -4.2% n.m. -15.7% -4.2% 32.3% 4.6% -6.3% -4.4% -15.2% 1.7% -4.7% 1.8% 1.4% 6.2% -7.8% -7.3% -12.3% -5.0% -12.0% 13.3% 3.6% -7.7% -2.1% 0.1% 8.3% -2.5%

Consumption

Implied net exports Latin America Production Consumption Implied net exports Europe Production

Consumption

Implied net exports CIS Production Consumption Implied net exports Asia Production

Consumption

Implied net exports Other world Production Consumption Implied net exports Total world(2) Production

3.6% 36.751 39.789 38.314 36.557 151.411 4.5% 36.481 -0.7% Consumption Data: CRU Note: (1) Coated sheet is defined as coil, sheet and strip applied with a metallic coating, including all tinmill products. (2) Global production and consumption values may not be exactly equal due to differences in timing and reporting authority relating to trade data.

2013 CRU International Ltd confidential

Page 16 of 20

April 2013

Steel sheet products

www.crugroup.com

Net consumption of steel sheet

(Mt) Hot-Rolled Steel Sheet North America USA Canada Mexico Total Latin America Total Western Europe Total - France - Germany - Italy - Spain - UK Eastern Europe Total - Poland CIS Total E & SE Asia China Japan Other E & SE Asia Total (2) Other world Total World Total Cold-Rolled Steel Sheet North America USA Canada Mexico Total Latin America Total Western Europe Total - France - Germany - Italy - Spain - UK Eastern Europe Total - Poland CIS Total E & SE Asia China Japan Other E & SE Asia Total Other world(2) Total World Total Coated Steel Sheet (1) North America USA Canada Mexico Total Latin America Total Western Europe Total - France - Germany - Italy - Spain - UK Eastern Europe Total - Poland CIS Total E & SE Asia China Japan Other E & SE Asia Total Other world(2) Total World Total Total Steel Sheet North America Latin America Western Europe Eastern Europe CIS E & SE Asia Other world World

(1)

2011/10 y/y ch 17.8% -4.4% 12.2% 14.6% -16.8% 8.5% 12.5% 1.4% 16.7% 34.7% 73.4% 13.2% 23.3% -26.8% 14.7% 2.8% 4.7% 12.4% -5.6% 7.3% 2.9% -5.5% -3.6% 1.2% -13.7% -13.7% -8.2% 13.1% -15.5% -40.0% 5.5% 8.7% 7.0% 10.6% 10.5% -11.8% -5.7% 4.3% 12.8% 2.8% 8.9% 13.1% -10.4% 6.5% -1.6% 4.6% 2.1% 4.7% 10.5% 9.2% -4.5% 6.3% 9.4% 20.1% -3.4% -2.1% 7.3% -0.4% 6.6% 3.6% 8.9% -10.8% 3.8% 9.6% -5.8% 7.4% 1.7% 5.1%

Q1 5.621 0.689 0.968 7.278 1.829 4.342 0.455 1.458 1.010 0.361 0.068 2.389 0.485 2.691 27.035 2.023 4.845 33.902 7.217 59.649 2.781 0.238 0.520 3.539 1.358 1.245 0.233 0.358 0.165 0.151 0.209 1.096 0.239 1.235 8.465 1.538 2.312 12.316 2.783 23.571 5.332 0.723 0.768 6.822 1.797 6.044 1.029 1.941 0.620 0.860 0.551 2.107 0.530 1.557 8.587 2.557 3.659 14.804 3.620 36.751 17.639 4.984 11.631 5.592 5.483 61.022 13.620 119.971

2012 Q2 5.584 0.632 0.966 7.182 1.606 4.700 0.513 1.515 0.982 0.412 0.129 2.452 0.435 1.775 28.896 1.956 4.663 35.515 6.760 59.990 2.682 0.241 0.563 3.485 1.373 1.304 0.204 0.339 0.111 0.164 0.265 1.191 0.277 1.131 7.472 1.529 2.610 11.611 3.581 23.676 5.293 0.722 0.821 6.836 1.877 6.794 0.942 2.430 0.635 0.892 0.672 2.197 0.614 1.977 9.776 2.297 4.196 16.268 3.840 39.789 17.503 4.855 12.798 5.839 4.883 63.395 14.180 123.454

Q3 5.614 0.655 0.960 7.230 1.761 4.156 0.209 1.486 1.191 0.182 (0.008) 2.589 0.332 2.066 27.674 1.977 4.760 34.411 6.395 58.608 2.500 0.230 0.532 3.262 1.489 1.382 0.171 0.475 0.202 0.166 0.287 1.087 0.237 1.160 7.787 1.549 2.682 12.018 3.595 23.992 4.730 0.632 0.818 6.180 1.881 6.340 0.851 2.449 0.767 0.749 0.592 1.925 0.496 2.113 9.681 2.413 3.917 16.011 3.865 38.314 16.672 5.131 11.878 5.601 5.339 62.440 13.855 120.915

Q4 5.239 0.755 0.993 6.988 1.560 4.098 (0.076) 1.585 0.838 0.210 0.016 2.296 0.449 1.976 27.994 1.814 4.927 34.735 6.968 58.621 2.242 0.256 0.531 3.029 1.414 1.215 0.186 0.264 0.158 0.200 0.243 0.987 0.202 1.160 9.278 1.461 2.621 13.361 3.555 24.722 4.398 0.662 0.820 5.880 1.725 5.953 0.763 2.204 0.625 0.609 0.608 1.889 0.436 1.737 9.288 2.318 4.058 15.664 3.708 36.557 15.898 4.700 11.266 5.172 4.873 63.761 14.231 119.899

Year 22.058 2.732 3.888 28.678 6.756 17.296 1.100 6.044 4.022 1.165 0.205 9.725 1.702 8.508 111.599 7.769 19.195 138.564 27.340 236.867 10.206 0.965 2.145 13.316 5.634 5.146 0.793 1.437 0.636 0.681 1.004 4.361 0.955 4.685 33.002 6.077 10.226 49.306 13.513 95.962 19.753 2.738 3.227 25.718 7.279 25.131 3.586 9.024 2.647 3.110 2.423 8.117 2.077 7.384 37.333 9.585 15.831 62.748 15.033 151.411 67.712 19.669 47.573 22.203 20.578 250.618 55.887 484.240

2012/11 y/y ch -3.4% -2.5% 10.3% -1.6% 10.4% -24.5% -57.8% -19.7% -39.2% 18.6% 99.3% 1.6% 1.7% 16.2% 9.0% -3.7% 10.8% 8.4% 13.5% 4.4% 5.8% 2.7% 16.0% 7.1% 0.6% -12.2% -19.2% -3.7% -26.8% -3.6% 25.0% 1.3% -4.6% 0.1% -10.9% 15.8% -1.4% -6.4% 14.6% -1.4% 11.0% 4.8% 12.6% 10.5% 8.4% -17.4% -14.3% -9.6% -41.3% -19.7% 7.4% -3.7% -4.3% 12.4% 26.0% 2.1% 4.0% 15.7% -1.0% 4.5% 4.4% 6.7% -19.7% -0.5% 10.8% 6.8% 9.4% 3.2%

2013 Q1 5.236 0.865 1.031 7.132 1.711 4.045 0.236 1.374 0.809 0.357 0.032 2.394 0.444 2.352 31.356 1.872 4.197 37.424 7.272 62.330 2.591 0.254 0.550 3.395 1.403 0.911 0.188 0.388 (0.014) 0.101 0.208 1.051 0.231 0.942 8.756 1.178 2.446 12.380 2.654 22.736 5.010 0.641 0.840 6.492 1.730 5.898 0.879 2.082 0.603 0.800 0.541 1.910 0.470 1.492 9.123 2.356 3.858 15.338 3.622 36.481 17.019 4.843 10.853 5.355 4.787 65.142 13.548 121.546

2013/12 y/y ch -6.8% 25.6% 6.4% -2.0% -6.4% -6.9% -48.2% -5.7% -19.9% -1.0% -52.1% 0.2% -8.3% -12.6% 16.0% -7.5% -13.4% 10.4% 0.8% 4.5% -6.9% 6.8% 5.9% -4.1% 3.3% -26.8% -19.3% 8.1% -108.5% -33.1% -0.1% -4.1% -3.5% -23.7% 3.4% -23.4% 5.8% 0.5% -4.6% -3.5% -6.0% -11.4% 9.5% -4.8% -3.7% -2.4% -14.5% 7.3% -2.7% -6.9% -1.8% -9.4% -11.4% -4.2% 6.2% -7.8% 5.4% 3.6% 0.1% -0.7% -3.5% -2.8% -6.7% -4.2% -12.7% 6.8% -0.5% 1.3%

Data: CRU Note: (1) Coated sheet is defined as coil, sheet and strip applied with a metallic coating, including all tinmill products.

Page 17 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

Stock figures for USA, Germany, Japan, China & Brazil

2012 APR USA Total carbon flat-rolled products End month stocks, '000 t Stock-to-shipment ratio, months Germany Hot-rolled flat products End month stocks, '000 t Stock-to-shipment ratio, months Cold-rolled flat products End month stocks, '000 t Stock-to-shipment ratio, months Coated flat products End month stocks, '000 t Stock-to-shipment ratio, months Japan (3) Hot-rolled flat products End month stocks, '000 t Stock-to-shipment ratio, months Cold-rolled flat products End month stocks, '000 t Stock-to-shipment ratio, months Coated flat products End month stocks, '000 t Stock-to-shipment ratio, months China (4) Hot-rolled flat products End month stocks, '000 t Cold-rolled flat products End month stocks, '000 t Coated flat products End month stocks, '000 t Brazil (5) Total carbon flat-rolled products End month stocks, '000 t Stock-to-shipment ratio, months
(2) (1)

2012 NOV

DEC

JAN

FEB

2013 MAR

APR

2013/12 (6) Y/y ch.

4,908 2.3

4,378 2.4

4,700 3.0

4,881 2.3

4,765 2.4

na na

na na

-2.2% 3.3%

698 2.9 395 2.9 536 2.2

702 2.8 367 2.8 436 1.9

589 4.5 326 4.6 412 3.2

623 2.7 348 2.6 417 1.9

635 3.0 360 2.8 426 2.0

na na na na na na

na na na na na na

-4.4% 0.7% -8.2% -7.4% -19.2% -12.8%

1,610 1.1 684 1.1 1,051 1.0

1,725 1.3 695 1.4 990 1.0

1,621 1.1 663 1.3 998 1.1

1,765 1.2 696 1.4 1,035 1.1

1,591 1.1 651 1.2 1,008 1.1

na na na na na na

na na na na na na

-4.7% -15.6% -11.4% -8.4% -5.5% -0.2%

1392 563 228

912 531 205

766 495 195

854 500 182

873 501 177

952 533 182

1,059 536 181

-23.9% -4.8% #DIV/0! -20.6%

1016 2.7

934 2.4

944 3.0

947 2.6

970 3.1

na na

na na

-2.8% 9.4%

Data: CRU, SSCI, BDS, Statistisches Bundesamt, JSEA, INDA. Note: Stocktoshipment ratios are calculated by CRU as end month stocks divided by total shipments in that same month and are not adjusted for seasonality. Year-on-year changes are calculated as the difference between stock data for the latest month available and data for that same month a year ago. * estimated. (1) Service centres. (2) Stockists. (3) Mills & dealers. (4) Shanghai warehouses. (5) Stockists (INDA members only). (6) based on latest months data *subject to revision. (Italics) = estimate. Subscribers to www.crumonitor.com can access more detailed stock data from our website. Moreover, we update stock data, not only when we publish the Steel Sheet Products Monitor, but throughout the month as soon as new data is released so check back regularly.

Japanese mills' steel sheet inventories

End-month stocks, '000 t 2,250 2,000 1,750 1,500 1,250 1,000 750 500 HR sheet Coated sheet CR sheet

Japanese mills' inventoryshipment ratios

Stock-to-shipment ratio, months-on-hand 2.0 1.8 1.6 1.4 1.2 1.0 0.8 HR sheet Coated sheet CR sheet

Data: CRU.

Data: CRU.

2013 CRU International Ltd confidential

Page 18 of 20

April 2013

Steel sheet products

www.crugroup.com

CRU historical prices

Hot-rolled coil prices North America: USA (Midwest) Western Europe: Germany France Italy Spain UK Far East imports: Non-CIS CIS Cold-rolled coil prices Q1 North America: USA (Midwest) Western Europe: Germany France Italy Spain UK Far East imports: Non-CIS CIS FOB FOB USD/st USD/t 824 909 Q2 767 845 Q1 Q2 2012 Q3 Q4 Year 2013 Q1 Q2

FOB FOB

USD/st USD/t

721 794

660 728

626 690

620 683

657 724

617 680

601 662

FOB FOB FOB FOB FOB FOB

EUR/t USD/t EUR/t EUR/t EUR/t GBP/t

533 693 528 505 505 448

539 694 532 513 518 450

516 645 492 490 493 412

485 624 470 465 462 377

518 664 505 493 495 422

502 661 493 483 482 403

496 646 490 472 470 405

CFR CFR

USD/t USD/t

658 645

675 658

590 570 2012 Q3 736 811

582 568

626 610

625 618 2013 Q1 725 799

605 600

Q4 729 804

Year 764 842

Q2 709 782

FOB FOB FOB FOB FOB FOB

EUR/t USD/t EUR/t EUR/t EUR/t GBP/t

617 801 610 580 582 522

630 812 625 585 595 517

610 762 592 565 573 485

576 742 557 532 533 437

608 779 596 565 571 490

592 779 573 554 550 460

590 768 570 548 540 460

CFR CFR

USD/t USD/t

733 723

737 728

643 635 2012 Q3 796 877

638 627

688 678

687 677 2013 Q1 782 862

660 650

Hot-dipped galvanised coil prices Q1 North America: USA (Midwest) Western Europe: Germany France Italy Spain UK Far East imports: Non-CIS CIS FOB FOB USD/st USD/t 888 979 Q2 824 908

Q4 779 859

Year 822 906

Q2 763 841

FOB FOB FOB FOB FOB FOB

EUR/t USD/t EUR/t EUR/t EUR/t GBP/t

632 821 627 580 592 533

653 841 642 586 608 528

631 788 607 568 580 485

594 764 573 547 538 430

627 803 612 570 580 494

614 808 588 564 555 470

612 797 585 551 545 490

CFR CFR

USD/t USD/t

795 nom

787 nom

700 nom

703 nom

746 nom

742 nom

730 nom

Data: CRU. Note: Prices shown are quarterly and annual averages. Those for the most recent quarter only take into account prices up to the current month. Refer to front page for notes and product definitions.

Page 19 of 20

2013 CRU International Ltd confidential

April 2013

Steel sheet products

www.crugroup.com

Economic indicators
2011 Year USA GDP (2) (1) Industrial production Total construction IP (1) (3) Housing starts (000) CV production (M units) Car production (M units) Western Europe Eurozone GDP (2) (1) Germany industrial production France industrial production (1) (1) Italy industrial production UK industrial production (1) Construction IP - Germany (1) Construction IP - France (1) (1) Construction IP - Italy Construction IP - UK (1) German housing permits (000) French housing starts (000) English housing starts (000) Germany car output (M units) France car output (M units) Italy car output (M units) UK car output (M units) Japan GDP (2) Industrial production (1) Total construction IP (1) Housing starts (000) Car output (M units) CV output (M units) China (2) GDP Industrial production (2) 1.8 4.1 -0.3 612 5.5 3.44 2010 Q3 2.8 1.6 -0.2 580 1.36 0.72 Q4 2.4 0.5 0.0 542 1.27 0.67 Q1 1.8 1.1 0.2 583 1.32 0.87 2011 Q2 1.9 0.3 0.1 573 1.21 0.79 Q3 1.6 1.4 -0.3 614 1.44 0.88 Q4 2.0 1.2 -0.7 678 1.49 0.91 Q1 2.4 1.5 7.3 715 1.47 1.06 2012 Q2 2.1 0.6 1.0 736 1.45 1.03 Q3 2.6 0.1 1.4 774 1.55 1.03 Q4 1.6 0.7 1.5 904 1.52 1.01

1.5 8.0 1.7 0.2 -0.8 3.6 0.1 -3.1 2.5 228.4 534.8 110.7 5.76 1.98 0.49 1.34

2.3 1.7 -0.9 0.9 0.4 0.6 -0.5 -0.6 2.9 52.9 122.9 29.0 1.28 0.43 0.14 0.31

2.3 2.9 1.5 0.7 0.1 1.1 -1.1 -0.1 -1.8 49.8 113.6 20.7 1.42 0.50 0.13 0.34

2.4 2.3 1.1 -0.1 -0.1 1.3 0.3 -1.3 0.0 50.7 122.3 29.4 1.45 0.53 0.15 0.35

1.6 0.9 -0.5 0.5 -1.2 1.1 0.5 -0.8 1.3 57.9 123.1 30.0 1.41 0.51 0.12 0.30

1.3 1.8 0.0 -1.8 -0.2 0.6 0.7 -0.8 -0.2 59.1 136.8 28.1 1.46 0.43 0.13 0.33

0.6 -1.6 -0.7 -1.7 -1.3 0.1 0.5 -0.7 0.1 60.7 152.6 23.3 1.44 0.52 0.09 0.37

-0.1 -0.4 -0.5 -2.3 -0.2 0.3 0.0 -3.2 -6.4 49.0 122.7 23.8 1.48 0.50 0.11 0.39

-0.5 0.0 -0.5 -1.9 -0.9 -1.8 0.4 -1.7 -2.8 64.9 118.3 23.5 1.28 0.42 0.11 0.35

-0.6 0.9 -0.2 -0.5 0.7 0.1 0.1 -1.5 -2.5 64.1 138.7 27.9 1.35 0.40 0.08 0.34

-0.9 -3.0 -1.8 -2.1 -1.9 -1.7 -0.8 -1.3 0.3 61.4 115.9 23.1 1.26 0.38 0.07 0.40

-0.5 -2.3 1.0 834.1 7.14 1.13

5.8 -1.0 -0.2 212.7 2.17 0.27

5.4 -0.1 0.5 218.7 1.91 0.46

0.2 -1.5 0.6 192.4 1.62 0.20

-1.7 -4.2 0.3 203.2 1.33 0.18

-0.5 5.4 0.3 229.6 2.07 0.26

-0.1 0.4 0.3 209.0 2.12 0.50

3.3 1.2 1.5 199.5 2.32 0.28

4.0 -2.0 -0.1 215.9 2.24 0.24

0.4 -4.2 0.9 227.1 2.15 0.26

0.4 -1.9 1.0 240.3 2.04 0.50

9.3 13.8

9.7 13.5

9.9 13.3

9.8 14.8

9.6 13.9

9.0 13.8

8.9 12.8

8.1 11.6

7.6 9.5

7.4 9.1

7.9 10.0

Data: BAK Oxford, SMMT, Monthly Statistics of Japan, CRU, OECD. Notes: (1) % change on previous period. (2) % change y/y. (3) Seasonally adjusted annualised.

Questions or comments may be addressed to: Josh Spoores: +1 724 940 7100 (josh.spoores@crugroup.com) This issue was completed on April 10 2013. The next issue will be completed on May 8 2013.
Subscription information Single user* electronic subscription (available via www.crugroup.com, email and print). For subscription enquiries, please telephone Customer Services on +44 20 7903 2147 or by email at customer.services@crugroup.com Please visit us online at www.crugroup.com

Legal information Prices indicated by CRU International Limited in this publication represent only an approximate evaluation based upon such dealings (if any) in those materials as may have been disclosed to CRU prior to publication. Whilst every effort is made to ensure that such prices are representative, and that the analysis, comment in the text is accurate, CRU cannot accept any liability whatsoever to any person choosing to rely upon the prices evaluated or views expressed by CRU, including liability for negligence.
Published monthly. Copyright 2013 by CRU International Limited. ISSN 1356-6547 All rights reserved. No part of this production may be reproduced or transmitted in any form or by any means electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher.
CRU, Chancery House, 53-64 Chancery Lane, London, WC2A 1QS, UK; Tel: +44 20 7903 2146; Fax: +44 20 7903 2172

2013 CRU International Ltd confidential

Page 20 of 20

Steel Sheet Products Monitor

CRU Monitors provide a regular monthly overview and analysis of the steel industry, including both upstream and downstream activities. They offer comprehensive, authoritative information on the latest developments in the markets. Yes, I would like to subscribe to the Steel Sheet Products Monitor
Bundled FREE with this product: Steel Sheet Products Supplement | CRUspi Futures

Every month you will receive

n Instant access to the latest steel sheet news and price assessments n Examination of production, consumption and trade balances in: n North America, Europe, Asia n An assessment of steel sheet products including hot-rolled, cold-rolled and galvanised steel products n A comprehensive monthly summary of industry news n Weekly price assessments of hot-rolled coil, cold-rolled coil, hot-dipped galvanized coil in the US midwest, Germany, Italy and China n Access to all past issues in your online account

How many users?

CRUs publications operate on a license basis and therefore cannot be forwarded within an organisation to other colleagues or posted on a companys intranet and internet. If more than one person in your company will need to receive this publication, please select the relevant box. Multi-users receive all the same information as the main user.
Licence Type GBP EUR US$

How to subscribe

n Single user n 2 Users n 3 Users n 4 Users n 5 Users n 6 Users n 7 Users n 8 Users n 9 Users

1850 2590 3370 4210 5050 5810 6390 6960 7520

2520 3330 3520 4660 4580 6070 5730 7580 6870 9100 7900 10460 8700 11500 9470 12530 10230 13540 Fax this form to: E-mail this form to: customer.services@crugroup.com

Please complete your contact details

Mr / Mrs / Miss / Ms First name Last name

+44 20 7903 2172

E-mail address where issues will be sent to : Job title Address Country Telephone VAT number Postcode/Zip Fax Company Call to subscribe:

+44 20 7903 2146

Please complete your payment details

CRU would like to keep you informed of new products and services. Please tick if you prefer not to be contacted by

n Please send me an invoice n A bank transfer has been made payable to CRU International Ltd for GBP / EUR / US$ ___________________________
Direct Bank Transfer: Bank Sort Code: Current Account Dollar Account Euro Account The Royal Bank of Scotland, Drummonds Branch, 49 Charing Cross, London SW1A 2DX, UK 16-00-38 BIC Swift Code: RBOSGB2L () 10348924 IBAN GB02 RBOS 1600 3810 3489 24 ($) CRUINT-USDC IBAN GB24 RBOS 1663 0000 5445 35 () CRUINT-EURC IBAN GB73 RBOS 1610 7010 1170 02

n email n post n telephone n fax

n I would like to pay by VISA / Mastercard / American Express (delete as appropriate)

Please charge my credit card for GBP / EUR / US$ ________________________________________________________ Card no:

nnnn nnnn nnnn nnnn

Security code: Expiry date Date

nnnn

www.crugroup.com
By signing this order form you are agreeing to the licensing agreement stated above. This subscription is valid for 12 months from the date of the signature above.

Cardholder name Signature

Your subscription will begin once payment has been received.

onitor