CMC 4th Quarter 2007
2008
Annual Meeting
of Shareholders
Outlook – China
§2007 Net Steel Exports Estimate 52 Million Tons
–Exports 67 Million Tons
–Imports 15 Million Tons
§2008 Anticipate 30% Reduction in Exports
–Removal VAT Tax Rebates / Increased Export Taxes
–High Bulk Freight Rates
–Protective Measures – U.S. / EU
–Currency Appreciation
–Higher Raw Material / Energy Costs
–Shift from Low Value to Higher Value Products
–Reduced Production at Smaller / Medium-Sized Mills
§Impact of Reduced Chinese Steel Exports
–Higher Prices in Asia & Internationally