Steel Industry Update #264

Steel Industry Update/264
July 2011
Locker Associates, 225 Broadway, Suite 2625 New York NY 10007
Tel: 212-962-2980
Table 1: Selected U.S. Steel Industry Data, May & Year-to-Date, 2011
Month of May
2011
2010
7,872
8,007
(000 net tons)
Raw Steel Production ...............
% Chg
-1.7%
2011
39,067
Year-to-Date
2010
37,267
% Chg
4.8%
Capacity Utilization .................
72.7
74.8
--
74.1
71.4
--
Mill Shipments ..........................
7,380
7,345
0.5%
37,141
34,941
6.3%
Exports .....................................
1,144
1,055
8.4%
5,313
5,174
2.7%
Total Imports.............................
2,964
2,293
29.3%
11,940
9,671
23.5%
Finished Steel Imports ............
2,011
1,789
12.4%
8,947
7,625
17.3%
Apparent Steel Supply*.............
8,247
8,079
2.1%
40,774
37,392
9.0%
Imports as % of Supply* .........
24.4
22.1
--
21.9
20.4
--
Average Spot Price** ($/ton) ......
$939
$770
22.0%
$923
$717
28.7%
Scrap Price# ($/gross ton) ..........
$427
$343
24.5%
$440
$351
25.2%
Sources: AISI, SteelBenchmarker
*Excl semi-finished imports
**Avg price of 4 carbon products
#shredded scrap
Table 2: U.S. Spot Prices for Selected Steel Products, July & Year-to-Date, 2011
Hot Rolled Band....

Cold Rolled Coil.......
Coiled Plate..................
Month of July
2011
2010
% Chg
735
578
27.2%
826
691
19.5%
1,033
795
29.9%
2011
812
905
1,010
Average Spot Price....
$865
$688
25.7%
$909
$716
27.0%
#1 Heavy Melt...
Shredded...
#1 Busheling.
401
443
483
279
309
394
43.7%
43.4%
22.6%
403
440
474
309
340
415
30.3%
29.3%
14.2%
($ per net ton)
Year-to-Date
2010
638
744
765
Sources: World Steel Dynamics SteelBenchmarker, July 2011
Email: lockerassociates@yahoo.com | Website: www.lockerassociates.com
% Chg
27.3%
21.6%
32.0%
Table 3: World Crude Steel Production, May & Year-to-Date, 2011

Month of May
Year-to-Date
(000 metric tons)
Region
2011
2010
% Chg
2011
2010
European Union.
16,317
16,534
-1.3%
77,609
74,645
Other Europe.
3,119
2,742
13.7%
14,987
12,084
% Chg
4.0%
24.0%
C.I.S.
9,635
9,553
0.9%
47,278
44,806
5.5%
North America
10,078
9,918
1.6%
49,047
46,726
5.0%
South America...
4,495
3,664
22.7%
20,363
17,519
16.2%
Africa...
1,178
1,470
-19.9%
5,755
7,016
-18.0%
Middle East.
1,711
1,650
3.7%
8,694
8,007
8.6%
Asia..
82,694
78,421
5.4%
402,421
372,936
7.9%
Oceania......
638
687
-7.1%
3,437
3,286
4.6%
Total
129,865
124,639
4.2%
629,591
587,026
7.3%
China.......
Japan...
60,245
9,047
55,877
9,724
7.8%
-7.0%
290,345
45,184
267,491
45,221
8.5%
-0.1%
United States..
7,273
7,264
0.1%
35,572
33,808
5.2%
India(e).
5,876
5,860
0.3%
29,610
28,440
4.1%
Russia(e).
5,856
5,192
12.8%
28,201
23,828
18.4%
Country
South Korea....
5,765
5,937
-2.9%
28,837
27,447
5.1%
Germany..
4,116
4,073
1.1%
19,317
18,888
2.3%
Ukraine(e)....
3,165
2,906
8.9%
15,023
14,168
6.0%
Brazil (e).
3,276
2,856
14.7%
14,753
13,530
9.0%
Turkey..
2,850
2,536
12.4%
13,543
11,006
23.0%
All Others....
22,396
22,414
-0.1%
109,206
103,199
5.8%
Source: World Steel Association, 7/11; e=estimate
Graph 1: World Crude Steel Production
Source: World Steel Association, 7/11; in million metric tons
-2-
Graph 2: World Steel Capacity Utilization Ratio
Source: World Steel Association, 7/11
Table 4: Global Steel Output, 2010 Estimate & 2011 Forecast

Region
EU 27
Other Europe
2010e
172.7
2011f
180.0
% Chg
4.2%
33.6
38.5
14.6%
CIS
108.2
113.5
4.9%
NAFTA
111.4
117.9
5.8%
South America
43.9
51.1
16.6%
Africa
16.6
14.5
-12.8%
20.6
22.8
10.8%
672.0
728.0
8.3%
Middle East
MEPS(e) - China
China
626.7
Japan
109.6
110.0
0.4%
Other Asia
166.3
183.4
10.3%
Oceania
MEPS Total
Total
8.1
8.3
1.9%
1,463.0
1,568.0
7.2%
1,417.7*
1,568.0
10.6%
Source: MEPS, 7/13/11; e=estimate, f=forecast
Steel Industry Update (ISSN 1063-4339) published 12 times/year by Locker Associates, Inc. Copyright 2011 by Locker Associates, Inc. All
rights reserved. Reproduction in any form forbidden w/o permission. Locker Associates, Inc., 225 Broadway Suite 2625 New York NY 10007.
-3-

Table 5: US Steel Industry Imports, YTD 2011
YTD 2011
838
YTD 2010
584
% Chg
43.5%
EU
1,733
1,677
3.3%
Canada
2,553
2,993
-14.7%
Brazil
1,111
269
313.0%
Korea
1,165
736
58.2%
Mexico
1,402
1,282
9.4%
Russia
493
549
-10.2%
China
392
295
32.9%
Australia
386
258
49.6%
61
33
85.8%
(in mil net tons)
Japan
South Africa
Indonesia
24
200.0%
Turkey
341
255
33.9%
Ukraine
200
21
854.0%
India
317
331
-4.1%
Others
650
380
71.1%
11,667
9,671
20.6%
Total
Source: AIIS, 6/26/11; Year-to-Date is May, 2011
Table 6: US Steel Industry Exports, YTD 2011

(in tonnes)
Canada
YTD 2011
2,211,529
YTD 2010
2,445,811
% Chg
-9.6%
Mexico
978,373
811,987
20.5%
EU
182,636
131,379
39.0%
2,006
4,369
-54.1%
Russia
Turkey
14,414
9,081
58.7%
Brazil
43,945
46,550
-5.6%
Venezuela
18,097
14,570
24.2%
Ecuador
6,841
12,570
-45.6%
Argentina
5,244
6,856
-23.5%
Colombia
27,255
36,323
-25.0%
6,613
1,941
240.7%
Peru
38,413
34,485
11.4%
Chile
12,390
9,567
29.5%
Dominican Republic
65,394
150,572
-56.6%
Panama
39,903
19,799
101.5%
Other W. Hemisphere
82,223
56,576
45.3%
Africa
42,612
19,288
120.9%
Australia
12,060
12,447
-3.1%
China
64,477
38,935
65.6%
Korea
25,261
19,789
27.7%
India
49,293
65,046
-24.2%
240,139
171,159
40.3%
Trinidad & Tobago
Others
Source: AIIS, 6/26/11; Year-to-Date is May, 2011
-4-
Table 7:US Exports of Ferrous Scrap by Destination, YTD 2011

(in 000 tonnes)
Canada
China
Hong Kong
India
Japan
Malaysia
Mexico
South Korea
Taiwan
Thailand
Turkey
Others
Totals
May
148
362
10
140
86
72
22
337
323
75
660
346
2,580
2011
April
149
427
13
81
11
176
30
445
312
119
361
130
2,254
March
159
364
17
49
43
118
61
281
236
109
318
135
1,889
Year-to-Date
2010
596
1,202
39
426
83
405
296
1,408
903
239
1,528
813
7,939
% Chg
17.0%
45.0%
40.5%
-23.0%
83.3%
15.9%
-17.8%
5.2%
48.3%
83.8%
27.2%
18.3%
24.1%
Year-to-Date
2011
2010
464
373
53
26
220
216
206
152
8
13
3,141
2,060
402
384
438
319
82
80
3,314
2,864
245
342
41
40
1,241
1,071
9,854
7,939
% Chg
24.3%
103.1%
1.6%
35.5%
-33.3%
52.5%
4.7%
37.5%
3.2%
15.7%
-28.4%
0.7%
15.9%
24.1%
2011
697
1,743
55
328
152
470
244
1,482
1,339
439
1,944
961
9,854
Source: American Metal Market, 7/15/11
Table 8: US Exports of Ferrous Scrap by Grade, YTD 2011

(in 000 tonnes)
Alloys
Borings
Cast Iron
No. 1 Bundles
No. 2 Bundles
No. 1 Heavy
No. 2 Heavy
Plate/Structural
Shavings
Shredded
Stainless
Tinned
Unspecified
Totals
May
97
9
47
45
2
880
115
77
16
939
59
10
285
2,580
2011
April
108
14
48
55
3
761
115
130
21
602
45
11
340
2,254
Source: American Metal Market, 7/15/11
-5-
March
107
13
45
38
2
555
70
110
19
669
54
7
198
1,889

Table 9: World Trade in Ferrous Scrap, 2009 & 2010
Exports
Country
Imports
2009
2010
2009
2010
Austria
Belgium-Luxembourg
1.7
3.4
1.0
3.8
1.7
5.5
1.0
7.0
Bulgaria
0.5
0.9
0.2
0.7
Czech Republic
1.4
1.8
0.4
0.6
Germany
7.3
9.2
3.9
5.6
Finland
0.3
0.2
0.5
0.8
France
5.1
6.7
2.4
2.8
Greece
0.0
0.1
1.2
1.0
Italy
0.3
0.4
3.3
4.8
Netherlands
4.3
5.1
1.9
2.1
Poland
0.9
1.3
0.6
0.5
Slovak Republic
0.3
0.5
0.2
0.3
Spain
0.3
0.3
4.6
5.7
Sweden
1.4
1.3
0.2
0.5
United Kingdom
6.0
7.5
0.2
2.0
Other EU
6.3
7.9
1.3
4.8
European Union (27)
39.6
47.9
28.0
40.3
Turkey
Others
0.1
1.4
0.1
2.4
15.7
0.8
19.2
1.7
Other Europe
1.5
2.5
16.4
20.9
Belarus
Kazakhstan
0.0
0.9
0.0
0.8
1.3
0.0
1.6
0.2
Russia
1.2
2.4
0.0
1.1
Ukraine
0.9
0.7
0.0
0.3
Other CIS
0.4
0.6
0.5
0.4
CIS
0.4
0.6
0.5
0.4
Canada
Mexico
4.8
0.7
5.2
1.0
1.4
0.9
4.0
1.1
United States
22.4
20.6
3.0
10.5
NAFTA
27.9
26.7
5.3
15.6
0.1
0.3
0.1
0.5
0.0
0.2
0.2
0.5
Brazil
Other Central & S. America
Central & South America
0.4
0.6
0.2
0.7
South Africa
Other Africa
1.1
2.0
1.2
2.7
0.0
1.6
0.9
3.8
Africa
3.2
3.9
1.6
4.7
Middle East
0.3
0.4
0.0
0.0
China
Japan
0.0
9.4
0.4
6.5
13.7
0.2
5.9
0.5
South Korea
0.5
0.5
7.8
8.1
Taiwan, China
0.2
0.1
3.9
5.4
Other Asia
1.4
1.8
4.7
4.1
11.5
9.2
30.3
24.0
2.2
2.0
0.0
1.3
87.8
94.8
82.5
107.9
Asia
Australia & New Zealand
World
Source: Worldsteel Associations World Steel in Figures 2011; in million metric tons
-6-

Table 10: World Apparent Steel Use, 2004-2010
Country
Austria
Belgium-Luxembourg
Czech Republic
2004
3.3
4.8
2005
3.5
4.6
2006
4.1
5.5
2007
4.1
5.6
2008
4.0
5.4
2009
3.2
3.8
2010
3.7
4.5
5.2
5.2
6.0
6.6
6.5
4.5
5.5
France
16.7
14.8
16.2
16.6
15.3
10.9
12.8
Germany
36.3
35.3
39.2
42.7
42.4
28.2
36.3
Italy
33.2
31.6
36.4
35.9
33.3
20.1
25.5
3.5
3.6
3.5
4.1
4.3
2.9
3.3
9.7
Netherlands
Poland
8.5
8.4
10.7
12.1
11.5
8.2
Romania
3.3
3.5
4.2
5.1
4.8
2.8
2.9
21.1
20.9
23.6
24.5
18.0
11.9
13.1
Spain
Sweden
United Kingdom
Other EU (27)
4.0
4.1
4.5
4.9
4.3
2.9
4.1
13.2
11.4
12.9
12.8
11.8
7.0
8.8
19.5
18.6
21.7
23.0
20.9
13.1
14.6
172.4
165.5
188.4
198.0
182.6
119.5
144.8
Turkey
Others
15.2
6.2
18.4
6.4
21.2
7.5
23.8
7.9
21.5
7.4
18.0
5.9
23.6
6.0
Other Europe
21.4
24.8
28.7
31.6
28.9
23.9
29.6
Russia
Ukraine
26.3
5.8
29.3
5.6
34.9
6.6
40.4
8.1
35.4
6.9
24.9
4.0
35.7
5.5
European Union (27)
Other CIS
6.1
6.7
7.3
7.9
7.8
7.2
7.3
CIS
38.1
41.5
48.9
56.3
50.0
36.1
48.5
Canada
Mexico
17.4
16.0
16.8
15.3
18.1
17.1
15.5
17.1
14.7
16.4
9.5
14.2
14.1
16.1
United States
117.4
105.4
119.6
108.0
98.4
59.2
80.1
NAFTA
150.8
137.5
154.9
140.6
129.5
82.9
110.3
3.6
18.3
3.7
16.8
4.5
18.5
4.6
22.1
4.8
24.0
3.2
18.6
4.6
26.6
Argentina
Brazil
Venezuela
2.4
2.4
3.2
3.6
3.4
2.7
2.3
Others
9.0
9.3
10.9
11.0
11.9
9.1
12.3
Central and S America
33.3
32.3
37.2
41.3
44.2
33.6
45.8
Egypt
South Africa
3.8
4.9
5.0
4.7
4.6
6.0
5.5
6.0
6.5
6.1
9.4
4.5
8.6
5.0
Other Africa
8.9
10.0
10.0
10.5
11.6
13.0
12.3
Africa
17.7
19.6
20.6
22.0
24.3
26.8
25.9
Iran
Other Middle East
14.5
17.6
15.6
20.3
14.6
23.0
19.1
25.1
14.9
30.8
17.2
25.1
17.1
28.1
Middle East
32.1
35.9
37.7
44.2
45.7
42.2
45.3
China
India
275.8
35.3
347.5
39.9
377.7
45.6
422.5
51.5
434.7
51.4
548.1
55.3
576.0
60.6
Japan
76.8
76.7
79.0
81.2
77.9
52.8
63.8
South Korea
47.2
47.1
50.2
55.2
58.6
45.4
52.4
Taiwan, China
22.1
19.9
19.8
18.1
16.9
11.3
17.8
Other Asia
45.8
48.4
45.4
52.8
52.7
50.3
55.6
503.0
579.6
617.6
681.3
692.2
763.2
826.1
8.0
7.9
7.9
8.4
8.5
6.1
7.5
976.7
1,044.7
1,141.9
1,223.7
1,205.9
1,134.2
1,283.6
Asia
Australia & New Zealand
World
Source: Worldsteel Associations World Steel in Figures 2011; in million metric tons of finished steel products
-7-
Source: Midrex World Direct Reduction Statistics, 2010
Source: Midrex World Direct Reduction Statistics, 2010
-8-
Locker Associates Steel Track: Spot Prices

U.S. Flat-Rolled Prices
U.S. Scrap Prices
($ per ton)
($ per ton)
500
1100
#1 Busheling
Plate
1000
450
900
400
800
Shredded Scrap
350
Rebar
CR Coil
700
#1 Heavy Melt
300
600
HR Band
250
500
200
400
'06 '07 '08 '09 1q 2q
S O
N D
M A M
'07 '08 '09 1q 2q
Locker Associates Steel Track: Performance

U.S. Raw Steel Production
10.0
(mil net tons)
9.0
2011
80%
7.0
70%
6.0
60%
5.0
50%
4.0
40%
2010
90%
8.0
3.0
U.S. Capacity Utilization
100%
2011
2010
30%
2011 7.9 7.4 8.1 7.8 7.9
2011 73% 75% 75% 74% 73%
2010 6.9 6.9 7.8 7.7
2010 64% 71% 73% 74% 75%
Steel Mill Products: US Imports, May & Year-to-Date

Imports: Country of Origin
(000 net tons)
Canada..
Mexico
Other W. Hemisphere..
European Union
Other Europe*..
Asia.
Oceania.
Africa..
Total
Imports: Customs District
Atlantic Coast
Gulf Coast/Mexican Border
Pacific Coast.
Gr Lakes/Canadian Border.
Off Shore
Month of May
2011
2010
% Chg
591
591
0.0%
286
233
22.7%
406
107
279.4%
483
430
12.3%
369
253
45.8%
720
603
19.4%
98
63
55.6%
11
14
-21.4%
2,964
2,294
29.2%
456
1,167
589
726
25
386
802
368
727
10
Source: AISI; *includes Russia
Update #264
-9-
18.1%
45.5%
60.1%
-0.1%
150.0%
Year-to-Date
2011
2010
% Chg
2,582
2,993
-13.7%
1,404
1,282
9.5%
1,251
356
251.4%
1,830
1,677
9.1%
1,131
846
33.7%
3,227
2,190
47.4%
447
292
53.1%
69
34
102.9%
11,940
9,671
23.5%
1,562
5,003
2,360
2,918
97
1,400
3,130
1,714
3,332
95
11.6%
59.8%
37.7%
-12.4%
2.1%
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transportation, distribution and mining industries. Typical projects involve in-depth analysis of a
firms market, financial and operating performance on behalf of a cooperative labormanagement effort. Locker Associates also produces a widely read monthly newsletter, Steel
Industry Update that circulates throughout the U.S. and Canadian steel industry.
MAJOR CLIENTS
United Steelworkers
Bank of Boston
Congress Financial
Santander Investment Securities
AEIF-IAM/AK Steel Middletown
Prudential Securities
US Steel Joint Labor-Mgmt Comm
LTV Steel Joint Labor-Mgmt Committee
Intl Union of Electrical Workers
Bethlehem Joint Labor-Mgmt Comm
Inland Steel Joint Labor-Mgmt Comm
Northwestern Steel and Wire
Boilermakers
American Federation of Musicians
USS/KOBE
Sysco Food Services of San Francisco
International Brotherhood of Teamsters
Development Bank of South Africa
J&L Structural Steel
Air Line Pilots Association/Delta Air Lines MEC

Sharpsville Quality Products
IPSCO
International Association of Machinists
CSEA/AFSCME
United Auto Workers
Service Employees International Union
American Fed of Television & Radio Artists
Supervalu
United Mine Workers
Algoma Steel
North American Refractories
UNITE/HERE
AFL-CIO George Meany Center
Watermill Ventures
Wheeling-Pittsburgh Steel
Canadian Steel Trade & Employment Congress
Minn Gov's Task Force on Mining
Special Metals
RECENT PROJECTS
Business Plan for High-Tech Startup (2009-present): drafted detailed business plan to
raise capital and promote a new hydrogen battery technology
IBT-Supervalu (2010): assist union and management to identify major operational problems
impacting warehouse performance and provide recommendations for joint improvement
Institute of Scrap Recycling Industries (2010): presented a status report on the U.S. steel
market before the Institute of Scrap Recycling Industries Commodities roundtable
Save the World Air-Marketing (2009-present): developed a marketing plan to help drive
sales of a green technology product, ELEKTRA, an electronic fuel device for trucks that
increases fuel economy (mpg's), reduces exhaust emissions and improves engine performance
Email: lockerassociates@yahoo.com | Website: www.lockerassociates.com

Steel Industry Update #264

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Steel Industry Update/264

Locker Associates, 225 Broadway, Suite 2625 New York NY 10007

(000 net tons)

Raw Steel Production ...............

Capacity Utilization .................

Mill Shipments ..........................

Finished Steel Imports ............

Apparent Steel Supply*.............

Imports as % of Supply* .........

Average Spot Price** ($/ton) ......

Scrap Price# ($/gross ton) ..........

Sources: AISI, SteelBenchmarker

*Excl semi-finished imports

**Avg price of 4 carbon products

Hot Rolled Band....

Average Spot Price....

($ per net ton)

Sources: World Steel Dynamics SteelBenchmarker, July 2011

Email: lockerassociates@yahoo.com | Website: www.lockerassociates.com