EU Steel MarketEU Steel Market

Report byChristian Rubach (Germany)

EFR MeetingMarch 9, 2010Brussels

EU Crude Steel ProductionEU Crude Steel Production(1000 tonnes)(1000 tonnes)

2009 2008 % change

Austria 5662 7594 -25,4

Belgium 5636 10674 -47,2

Czech Republic 4594 6387 -28,1

Finland 3078 4418 -30,3

France 12836 17879 -28,2

F. R. Germany 32671 45833 -28,7

Greece 2082 2477 -15,9

Hungary 1401 2096 -33,2

Italy 19737 30590 -35,5

Luxembourg 2215 2582 -14,2

Netherlands 5194 6853 -24,2

Poland 7208 9728 -25,9

Romania 2699 5035 -46,4

Slovakia 3747 4490 -16,5

Slovenia 436 641 -32,0

Spain 14300 18640 -23,3

Sweden 2805 5198 -46,0

UK 10080 13521 -25,4

EU27 139143 198000 -29,7 Source: IISI

Steel Production/ Steel Scrap Steel Production/ Steel Scrap Consumption in the EU (million Consumption in the EU (million tonnes)tonnes)

Sources: EUROFER/BDSV

195,5 206,9 209,6197,8

139,1

106,0 115,5 117,2 111,7

79,3

0,0

50,0

100,0

150,0

200,0

250,0

2005 2006 2007 2008 2009

Steel Production Steel Scrap Consumption

(-30%)

(-29%)*

* estimated

Worldsteel Worldsteel

Sources: World Steel Association

Worldsteel Worldsteel

Sources: World Steel Association

Worldsteel

The world crude steel capacity utilisation ratio of the 66 countries in January 2010 was 72.9%, an increase from 71.9% in December 2009. Compared to January 2009, the utilisation ratio in January 2010 increased by 11.6 percentage points.

Worldsteel Worldsteel

Sources: World Steel Association

EU: Overview Steel Using SectorsEU: Overview Steel Using Sectors

Sources: EUROFER

EU: Forecast for real consumptionEU: Forecast for real consumption

Sources: EUROFER

Sources: EUROFER

EU: Forecast for apparent EU: Forecast for apparent consumptionconsumption

EUROFER‘s Steel Market Outlook 2010 - 2011

EU Steel market: first green shoots of recovery

There are signals that economic momentum in the EU economy should gradually gain further strength this year. Progress will be slow and surrounded by uncertainties; however, the risks are now much more balanced than a year ago.

Also in the steel using sectors the recovery will take hold. Activity in the manufacturing sector will be supported by improving international trade and inventory replenishment. The outlook for the engineering industries and automotive manufacturers has become slightly more upbeat.

EUROFER‘s Steel Market Outlook 2010 - 2011

EU Steel market: first green shoots of recovery

In contrast, perspectives for the construction sector have darkened, mainly due to a further deterioration in the non-residential sector. On balance, output in the steel using sectors will rise 0.6% in 2010. A further strengthening is expected for 2011 with growth accelerating to 3.5-4%.

The rebound in real steel consumption expected for 2011 will broaden the basis for growth in apparent consumption