Goldman Sachs
4th Annual Global Steel CEO Forum
December 4, 2008
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
