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