CMC 4th Quarter 2007
Bank of America
BASics/IndustrialsConference
May 7, 2008
Outlook – China
§2007
Net Finished Steel Exports 46 Million Tonnes
–Exports
63 Million Tonnes
–Imports
17 Million Tonnes
§2008
Anticipate 30% Reduction in Net Exports
–Removal
VAT Tax Rebates / Increased Export Taxes
–High
Bulk Freight Rates
–Protective
Measures – U.S. / EU
–Currency
Appreciation
–Higher
Raw Material / Energy Costs
–Shift
from Low Value to Higher Value Products
–Reduced
Production at Smaller / Medium-Sized Mills
§Impact
of Reduced Chinese Steel Exports
–Higher
Prices in Asia & Internationally
§Chinese
Steel Inventories Are Low
