1
2	CMC – Business Model Vertical Integration Product Diversification Global Geographic Dispersion
3	Current Market Conditions & Outlook Global Liquidity Crisis has Frozen the Steel Markets Vicious Downward Spiral of Confidence Supply, Including Inventories, Exceeds Apparent (or Willing) Demand Major Focus is Inventory Reduction and Cash Generation Major Steel Production Cutbacks, 30-50% Depending on Markets Sharp Price Declines Appear to be Easing Project Delays, Cancellations More Frequent Contract Cancellations, Market Claims, Price Renegotiations at Unprecedented Levels
4	North America Ferrous Scrap Prices, After Free Falling ($480/LT Drop July – November), Now Stabilizing Ferrous Scrap Flows Dramatic Slowing Low Prices Impact Collection Winter Approaching U.S. Steel Mills Driving Down Inventories – Major Announced Production Cutbacks Year End Impact Rebar Fabrication Backlogs Declining Many Small Jobs (200-700 Tons) Being Bid But Larger Jobs are Scarce Service Centers Living Hand-to-Mouth; Buying from Mills’ Inventories
5	North America Rebar Imports Well Down Only 20,000 MT Imported in November Only 79,000 MT/Month Average YTD 2008 Latest Turkish Offers Approximately US $500/MT Houston Not Attractive Long Lead Times Must Commit to Larger Quantities Volatility Scrap / Domestic Rebar Prices Credit / Working Capital Constraints Strengthening US$ and Low Freight Rates Not Attracting Imports
6	North America OCTG Imports Starting to Decline Raw Materials Some Weaker Some OK Copper Prices – Always a Bell Weather At $1.60 - $1.70 Per Pound Reflects Lower Demand China Starting to Buy Nonferrous Scrap Again – Positive Sign
7	Europe / Middle East Mill Production Cutbacks and Inventory Reduction Programs Will Continue into 2009 Large Inventories Unsold Rebar in Middle East Markets Polish Government Stimulus Package and EU Funds for Infrastructure a Positive for 2009 Many Governments are Focusing on Infrastructure Spending in 2009 Which Will Benefit Long Steel Products
8	"Reversal of Former Strategy to..." Reversal of Former Strategy to Control Overheating Economy / Inflation Target 8-9% GDP in 2009 Fiscal Stimulus US $590 Billion Infrastructure Spending Focus Major Infrastructure Projects, Rail, Ports, Highways Focus Public Housing Lowering Taxes (Including Income Taxes?) Reducing Export Taxes Monetary Rapidly Cutting Interest Rates, Latest by 1.08% Providing More Export Subsidies Currency Now Depreciating to US$ (6.83-6.85)
9	China Steel Mills Cut Back Production 30-50% Long Products Demand and Prices Improving Slightly – Flat Products Remain Weak Steel Mills Starting to Buy Imported Scrap Spot Iron Ore Prices now $70-73/MT (Bottom Mid November at $65/MT) Chinese Mills Only Buying on Spot Market – No One Buys at Benchmark (Contract) Prices Large Inventory of Iron Ore at Ports (60-70 Million MT) Likely to Take One to Two Quarters to be Significantly Reduced
10	Summary – What Will Break the Cycle? Global Government Intervention Programs Must be Effective Credit / Liquidity Issues to Ease Restoration of Confidence Demand to Exceed Production Cutbacks / Inventory Reductions Clear Direction and Action from New U.S. President / Administration
11	"Possible Capital / Infrastructure Stimulus" Possible Capital / Infrastructure Stimulus in the U.S. China’s Impact Will be Critical Infrastructure Spending Stimulus to Domestic Consumption Limited Steel Exports Positive Signs After Chinese New Year
12	Investor Information
13	Forward-Looking Statements
14