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2. “Never before have I seen such a sharp decline and I have been in the business since 1974.” – Nucor COO John Ferriola Seen the news lately?

3. Largest steel-making companiesm tonnes crude steel

5. Seen the news? • US Steel to indefinitely idle Lone Star facility – February 13 • US Steel idles Lorain mill for at least 60 days - March 5 • US Steel exiting DOM tubular business - January 6 • PTC Alliance idles WV DOM operation -February 12 • Synalloy: helped by trade case, hurt by surcharge decline - February 19 • Timken announces organizational changes, job cuts – March 3 • New Chinese pipe mill in the US expected to open in 2011 - January 12 • Tenaris Algoma Tubes shutting down two Canadian facilities for six weeks beginning March 20 -March 10

6. EAF’s running under 50% • Estimated mid 40% • STLD projecting loss • Can shut on & off • EAF’s running intermittently with reduced work weeks

7. AISI raw steel production

8. North American Blast Furnaces

9. ArcelorMittal Operating Levels

10. MSCI FY inventory (all products)

11. MSCI inventory data

12. MSCI FY shipments

13. MSCI FY pipe & tube shipments High: April 335,200 Low: Dec 178,500

14. AISI FY domestic pipe shipments

16. 29% 9.2% Other includes non-classified shipments, rail, mining, agricultural, military

17. US pipe imports

20. End markets Weak Better • Non-res construction bounces back in 2014 • Housing recovers in 2012 • White goods • Automotive (February at 1982 levels) • energy (could improve if oil prices rise) • agriculture

21. Industry forecast • Inventories balance at end of May • Buying resumes in July • H2.09 improvement but no real recovery through H1.10 • Prices lower in Q2; flat in Q3 and then relapse • Credit issues • Failures, distressed mergers Even Warren Buffett feeling the pinch Berkshire Hathaway FY.08 worst results ever. Buffett says economy “has fallen off a cliff.” Also notes that recent efforts to spur recovery may cause inflation higher than the 1970s.

22. Impact of stimulus plan • domestic industry could see an additional 3.5-4m short tons of steel shipments • go disproportionately to long product producers • 4% of infrastructure spending slated for actual steel purchases which would amount to $3.2bn in steel purchases with an average selling price of $800 s.t.

23. Lawsuits Rare in the good times, Now becoming commonplace

24. Tubular Lawsuits Olympic Steel suing Valmont Industries for $791,900 for breach of contract contending that a sheet order was rejected only because the inventory devalued significantly between when the contract was signed and when the order was delivered.When Valmont placed an order for 2,000 short tons of hotrolled coil last September, the selling price was $1,010 per short ton; when shipped in November, HRC was selling for $820/s.t.Valmont contended that the steel did not meet specifications and refused to process it into tubes, according to the complaint. US Steel is being sued by distributor JD Fields of Houston for $992,000. The complaint states that USS agreed to sell Fields 800 feet of pipe for $2,205 per tonne, but then changed the terms of the agreement. Fields claims that after it had already accepted an order from a customer based on this price, USS told the company it needed a 100-tonne minimum to fill the order, which would be rolled in April. Fields said it agreed and then was informed on May 30 that USS would not honor the agreement.The dispute also involves a 6,150 ft seamless pipe order and a pipe invoice price that was allegedly 57% higher than agreed.

25. and more lawsuits US mill antitrust case --A series of lawsuits have been filed against nine US producers contending they fixed prices and coordinated outages to keep prices high.Each case alleges the mills conspired to "fix, raise, maintain and stabilize the price at which steel products were sold in the US" beginning in 2005. Russian steelmaker Novolipetsk will pay DBO Holdings $234m to settle a lawsuit over NLMK's failure to purchase North American tubemaking group John Maneely Co.The payment is due within four business days of yesterday's signing of the agreement, Steel Business Briefing notes. NLMK last November terminated the deal to purchase the Maneely assets for $3.5bn and was sued for breach of contract by DBO on behalf of the Carlyle Group, which owns Maneely."The agreement provides for the full mutual release and discharge by NLMK and DBO from their claims arising from the transaction," NLMK states.In early January pre-trial dockets seen by SBB, NLMK denied the breach claim saying it terminated the agreement properly. The steelmaker also asserted that Maneely was not entitled to a claim for more than the termination fee in the merger agreement. The amount of the fee was not disclosed.Maneely owns 11 NA plants with total pipe and tube production capacity of over 3m short tons per year.

27. The Steel Index March 2-8

28. The Steel Index March 2-8

29. The Steel Index

30. The Steel Index

31. TSI –Global Inventory

32. The Steel Index – Global Demand Outlook

33. The Steel Index – Global Price Outlook

34. The Steel Index – N. American Inventory

35. The Steel Index – N. American Demand Outlook

36. The Steel Index – N. American Price Outlook

37. TSI Asian/Middle East inventory

38. TSI - Asian/Middle East demand outlook

39. TSI - Asian/Middle East price outlook

40. Summary • Prices will continue to decline • Demand will remain weak • No improvement until H2.10 • Service centers still buying amongst themselves • US raw steel output should be near bottom • Non-residential construction downturn just getting underway

41. Thank you! London | Pittsburgh | Shanghai | Sao Paulo | Singapore | Bursa