MICHAEL SETTERDAHL – MANAGING DIRECTOR

Estimated Steel Flow

1950 - 1965

Estimated Steel Flow

1965 - 1990

Million Metric TonsCrude Steel EU-27

Production:1992: 1752000: 1952005: 195

Source: ISSB

1990 - 2005

Million Metric TonsCrude Steel EU-27

Production:2005: 1952007: 2102009: 137

Source: ISSB

2005 - 2012

2011: 1802012: 170

Over capacity in EU region (60Million MT)?

• Protectionism! Keeping other regions’ over capacity out?

• Capacity cuts? Or are we waiting for better times? • Flat products• Long products

• Solutions? Consolidation, Capacity removal (efficient capacity VS. inefficient)?

Steel Flows 2011

5.1

1.7 6.54.8

3.0

6.4

4.7

2.0

4.7

Source: SBB / Platts