Steel Industry Update/272

March 2012

Locker Associates, 225 Broadway, Suite 2625 New York NY 10007

Tel: 212-962-2980

Table 1: Selected U.S. Steel Industry Data, January & Year-to-Date, 2012
Month of January
2012
2011
% Chg
8,495
7,927
7.2%

(000 net tons)

Raw Steel Production ...............

2012
8,495

Year-to-Date
2011
7,927

% Chg
7.2%

Capacity Utilization .................

77.6

73.2

--

77.6

73.2

--

Mill Shipments ..........................

8,498

7,529

12.9%

8,498

7,529

12.9%

Exports .....................................

1,262

1,059

19.2%

1,262

1,059

19.2%

Total Imports.............................

2,815

2,117

33.0%

2,815

2,117

33.0%

Finished Steel Imports ............

2,204

1,700

29.6%

2,204

1,700

29.6%

Apparent Steel Supply* .............

9,440

8,169

15.6%

9,440

8,169

15.6%

Imports as % of Supply*..........

23.3

20.8

--

23.3

20.8

--

Average Spot Price** ($/ton) ......

$836

$849

-1.6%

$836

$849

-1.6%

Scrap Price# ($/ton) ...................

$466

$455

2.4%

$466

$455

2.4%

Sources: AISI, SteelBenchmarker

*Excl semi-finished imports

**Avg price of 3 carbon products

#shredded scrap

Table 2: U.S. Spot Prices for Selected Steel Products, March & Year-to-Date, 2012

Hot Rolled Band....

Cold Rolled Coil........
Coiled Plate..................

Month of March
2012
2011
% Chg
693
869
-20.3%
788
960
-17.9%
929
1010
-8.0%

2012
719
816
938

Average Spot Price....

$803

$946

-15.1%

$824

$903

-8.7%

OCTG*

2,045

1,746

17.1%

2,030

1,750

16.0%

#1 Heavy Melt...
Shredded Scrap...
#1 Busheling.

397
439
459

404
442
472

-1.7%
-0.7%
-2.8%

403
447
478

408
443
471

-1.2%
0.8%
1.3%

($ per net ton)

Year-to-Date
2011
% Chg
829
-13.3%
924
-11.7%
956
-1.9%

Sources: World Steel Dynamics, Spears Research, 3/12; *OCTG data is February, 2012

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Steel Industry Update/272

Table 3: World Crude Steel Production, February & Year-to-Date, 2012

Month of February
Year-to-Date
(000 metric tons)
2012
2011
%
Chg
2012
2011
Region
European Union.
14,069
14,627
-3.8%
28,016
29,371
Other Europe.
2,986
2,745
8.8%
6,349
5,785

% Chg
-4.6%
9.7%

C.I.S.

8,780

8,902

-1.4%

18,184

18,443

-1.4%

North America

9,945

9,114

9.1%

20,492

18,988

7.9%

South America...

3,828

3,761

1.8%

7,656

7,506

2.0%

Africa/Middle East.....

1,607

1,547

3.9%

3,151

3,181

-1.0%

Asia..

77,420

75,646

2.3%

156,557

155,214

0.9%

Oceania......

548

631

-13.2%

1,006

1,364

-26.3%

Total

119,183

116,972

1.9%

241,409

239,851

0.6%

55,883
8,608

54,095
8,936

3.3%
-3.7%

112,616
17,238

110,145
18,591

2.2%
-7.3%

Country
China.......
Japan...
United States..

7,260

6,690

8.5%

14,967

13,881

7.8%

India(e).

5,700

5,734

-0.6%

11,800

11,879

-0.7%

Russia(e).

5,575

5,552

0.4%

11,523

11,479

0.4%

South Korea.......

5,449

5,063

7.6%

11,223

10,727

4.6%
-5.6%

Germany...

3,583

3,697

-3.1%

6,951

7,362

Brazil...

2,778

2,687

3.4%

5,589

5,451

2.5%

Turkey

2,762

2,460

12.3%

5,897

5,201

13.4%

Ukraine(e)...

2,680

2,722

-1.6%

5,551

5,641

-1.6%

All Others....

55,883

54,095

3.3%

112,616

110,145

2.2%

Source: World Steel Association, 3/12; e=estimate

Graph 1: World Crude Steel Production, February 2012

Source: World Steel Association, 3/12; in million metric tons

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Steel Industry Update/272

Graph 2: World Steel Capacity Utilization Ratio, February, 2012

Source: World Steel Association, 3/12

Table 4: Acerinox Financial Results, 2011

(in million EUR)

Net sales
EBITDA
EBIT
Profit before taxes & minorities
Depreciation
Gross cash flow
Profit after taxes & minorities
Net cash flow

2011
4,672
340
192
133
147
279
74
221

2010
4,500
381
232
193
148
340
123
271

% Chg
3.8%
-10.6%
-17.1%
-31.1%
-7.0%
-17.9%
-39.9%
-18.5%

Source: SteelGuru.com, 3/4/12

Steel Industry Update (ISSN 1063-4339) published 12 times/year by Locker Associates, Inc. Copyright 2012 by Locker Associates, Inc. All
rights reserved. Reproduction in any form forbidden w/o permission. Locker Associates, Inc., 225 Broadway Suite 2625 New York NY 10007.

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Steel Industry Update/272

Table 5: North American Rotary Rig Count, February 3, 2012
Location
Land
Inland waters
Offshore
United States Total
Gulf of Mexico
Canada
North America Total

Week
1,938
17
42
1,997
42
710
2,707

Breakout Information
Oil
Gas
Miscellaneous
Directional
Horizontal
Vertical

1,245
745
7
217
1,174
606
8
34
44
72
135
81
183
205
114
914
27
49

Major State Variances

Alaska
Arkansas
California
Colorado
Louisiana
New Mexico
North Dakota
Oklahoma
Pennsylvania
Texas
W. Virginia
Wyoming

Week Ago
1,949
17
42
2,008
42
682
2,690

+/-11
0
0
-11
0
28
17

Year Ago
1,696
16
27
1,739
27
626
2,365

+/242
1
15
258
15
84
342

1,225
777
6
217
1,185
606

20
-32
1
0
-11
0

818
911
10
229
981
529

427
-166
-3
-12
193
77

11
34
45
71
142
82
182
203
114
917
27
48

-3
0
-1
1
-7
-1
1
2
0
-3
0
1

7
36
38
64
175
80
148
165
109
750
20
47

1
-2
6
8
-40
1
35
40
5
164
7
2

Source: American Metal Market, 2/8/12

Source: AISI Report, March 2012

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Steel Industry Update/272

Source: AISI Report, March 2012

Source: AISI Report, March 2012

Source: AISI Report, March 2012

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Steel Industry Update/272

Locker Associates Steel Track: Spot Prices

U.S. Flat-Rolled Prices

U.S. Scrap Prices

($ per ton)

($ per ton)

500

1100

#1 Busheling
Plate

1000

450

Shredded Scrap
900
400

CR Coil
#1 Heavy Melt

800
350

700

Rebar

HR Band

300

600
250

500

200

400
'07

'08 '09

'10

1q

2q

'07 '08 '09

'10

1q

2q

Locker Associates Steel Track: Performance

U.S. Raw Steel Production

10.0

(mil net tons)

2012

2012
2011

9.0

80%

7.0

70%

6.0

60%

5.0

50%

4.0

40%

2011

90%

8.0

3.0

U.S. Capacity Utilization

100%

30%

2012 8.5

2012 78%

2011 7.9

2011 73%

Steel Mill Products: US Imports, January & Year-to-Date

Imports: Country of Origin
(000 net tons)

Canada..
Mexico
Other W. Hemisphere..
European Union
Other Europe*..
Asia.
Oceania.
Africa..
Total
Imports: Customs District
Atlantic Coast
Gulf Coast/Mexican Border
Pacific Coast.
Gr Lakes/Canadian Border
Off Shore

Month of January
2012
2011
% Chg
468
475
-1.5%
185
352
-47.4%
340
198
71.7%
419
342
22.5%
487
79
516.5%
881
571
54.3%
33
85
-61.2%
1
16
-93.8%
2,815
2,117
33.0%

2012
468
185
340
419
487
881
33
1
2,815

420
1,435
426
508
25

420
1,435
426
508
25

246
880
466
513
11

Source: AISI; *includes Russia

Update #272
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70.7%
63.1%
-8.6%
-1.0%
127.3%

Year-to-Date
2011
% Chg
475
-1.5%
352
-47.4%
198
71.7%
342
22.5%
79
516.5%
571
54.3%
85
-61.2%
16
-93.8%
2,117
33.0%
246
880
466
513
11

70.7%
63.1%
-8.6%
-1.0%
127.3%

Locker Associates, Inc.

LOCKER ASSOCIATES is a business-consulting firm that specializes in enhancing the
competitiveness of businesses and industries on behalf of unions, corporate and government
clients. By combining expert business and financial analysis with a sensitivity to labor issues,
the firm is uniquely qualified to help clients manage change by:

leading joint labor/management business improvement initiatives;

facilitating ownership transitions to secure the long-term viability of a business;
conducting strategic industry studies to identify future challenges and opportunities;
representing unions in strategic planning, workplace reorganization and bankruptcy
formulating business plans for turnaround situations; and
performing due diligence for equity and debt investors.

Over the last 28 years, the firm has directed over 225 projects spanning manufacturing,
transportation, distribution and mining industries. Typical projects involve in-depth analysis of a
firms market, financial and operating performance on behalf of a cooperative labormanagement effort. Locker Associates also produces a widely read monthly newsletter, Steel
Industry Update that circulates throughout the U.S. and Canadian steel industry.

MAJOR CLIENTS
United Steelworkers
Bank of Boston
Congress Financial
Santander Investment Securities
AEIF-IAM/AK Steel Middletown
Prudential Securities
US Steel Joint Labor-Mgmt Comm
LTV Steel Joint Labor-Mgmt Committee
Intl Union of Electrical Workers
Bethlehem Joint Labor-Mgmt Comm
Inland Steel Joint Labor-Mgmt Comm
Northwestern Steel and Wire
Boilermakers
American Federation of Musicians
USS/KOBE
Sysco Food Services of San Francisco
International Brotherhood of Teamsters
Development Bank of South Africa
J&L Structural Steel

Air Line Pilots Association/Delta Air Lines MEC

Sharpsville Quality Products
IPSCO
International Association of Machinists
CSEA/AFSCME
United Auto Workers
Service Employees International Union
American Fed of Television & Radio Artists
Supervalu
United Mine Workers
Algoma Steel
North American Refractories
UNITE/HERE
AFL-CIO George Meany Center
Watermill Ventures
Wheeling-Pittsburgh Steel
Canadian Steel Trade & Employment Congress
Minn Gov's Task Force on Mining
Special Metals

RECENT PROJECTS
Business Plan for High-Tech Startup (2009-present): drafted detailed business plan to
raise capital and promote a new hydrogen battery technology
IBT-Supervalu (2011): assist union and management to identify major operational problems
impacting warehouse performance and provide recommendations for joint improvement
Institute of Scrap Recycling Industries (2010): presented a status report on the U.S. steel
market before the Institute of Scrap Recycling Industries Commodities roundtable

Save the World Air-Marketing (2009-present): developed a marketing plan to help drive
sales of a green technology product, ELEKTRA, an electronic fuel device for trucks that
increases fuel economy (mpg's), reduces exhaust emissions and improves engine performance

Email: lockerassociates@yahoo.com | Website: www.lockerassociates.com