CMC 4th Quarter 2007
2008
Annual Meeting
of Shareholders
Outlook – North America
§Non-Residential Construction Markets Remain Solid
§Anticipate 2008 Demand Similar to 2007 (Slightly Lower)
§No Signs of Any Significant Impact from Sub Prime Debacle
§Steel Imports Significantly Reducing
–Weak U.S. Dollar
–High Ocean Freight Rates
–Better International Prices
§With Lead Times, Earliest Date Import Trend Could Reverse is Mid 2008
§Service Centers Very Low Inventory Levels; Will Increase Buying as Prices Rise
§Solid Demand + Low Imports + Rising Scrap Prices + Low Inventories = Rising Steel Prices and Increased Shipments
Steel Long Products