CMC 4th Quarter 2007
Bank of America
BASics/IndustrialsConference
May 7, 2008
Summary – Outlook 2008
§U.S.
Steel Prices Lowest in the World
§Declining Steel Imports
§Weak
U.S.$ Barrier to Imports
§High
Ocean Freights Also a Barrier to Imports
§Low Inventory Levels – Mills/Service
Centers
§Ferrous Scrap Prices at All-Time Highs;
Will Correct at High Levels
Will Correct at High Levels
§Supply
Driving Up Steel Prices
§Rebar/Merchant Bar Margin Spread Well Over $300/Ton
§Non-Residential
Construction Remains Good
Positives – U.S.