Steel Industry Update #269

Steel Industry Update/269
December 2011
Locker Associates, 225 Broadway, Suite 2625 New York NY 10007
Tel: 212-962-2980
Table 1: Selected U.S. Steel Industry Data, October & Year-to-Date, 2011
Month of October
2011
2010
% Chg
7,888
7,212
9.4%
(000 net tons)
Raw Steel Production ...............
2011
79,235
Year-to-Date
2010
74,328
% Chg
6.6%
Capacity Utilization .................
71.9
67.3
--
74.5
70.8
--
Mill Shipments ..........................
7,934
6,629
19.7%
76,375
69,784
9.4%
Exports .....................................
1,151
995
15.7%
11,023
10,059
9.6%
Total Imports.............................
2,340
1,888
23.9%
24,331
20,271
20.0%
Finished Steel Imports ............
1,898
1,585
19.7%
18,607
15,855
17.4%
Apparent Steel Supply*.............
8,681
7,220
20.2%
83,959
75,579
11.1%
Imports as % of Supply* .........
21.9
22.0
--
22.2
21.0
--
Average Spot Price** ($/ton) ......
$810
$661
22.4%
$883
$704
25.4%
Scrap Price# ($/gross ton) ..........
$440
$339
29.8%
$440
$342
28.7%
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, December & Year-to-Date, 2011
Hot Rolled Band....

Cold Rolled Coil.......
Coiled Plate..................
Month of December
2011
2010
% Chg
$686
$682
0.6%
788
781
0.9%
905
810
11.7%
2011
$755
853
994
Average Spot Price....
$793
$758
4.7%
$867
$705
OCTG (J55-SML)...
$2,023
$1,769
14.4%
41,920
1,748
9.9%
#1 Heavy Melt...
Shredded Scrap...
#1 Busheling.
$398
434
475
$327
354
388
21.7%
22.6%
22.4%
$399
437
473
$316
348
410
26.3%
25.7%
15.5%
($ per net ton)
Year-to-Date
2010
$619
725
770
Sources: World Steel Dynamis SteelBenchmarker, Spears & Associates, 12/11
Email: lockerassociates@yahoo.com | Website: www.lockerassociates.com
% Chg
21.9%
17.5%
29.0%
23.0%

Table 3: World Crude Steel Production, October & Year-to-Date, 2011
Month of October
Year-to-Date
(000 metric tons)
Region
2011
2010
% Chg
2011
2010
European Union.
15,273
15,440
-1.1%
150,781
145,505
Other Europe.
3,326
3,004
10.7%
30,744
26,157
C.I.S.
9,685
North America
South America...
94,141
89,423
% Chg
3.6%
17.5%
9,236
4.9%
5.3%
10,014
9,101
10.0%
99,086
93,226
6.3%
4,092
4,053
1.0%
40,997
36,756
11.5%
Africa...
1,206
1,382
-12.8%
11,677
13,707
-14.8%
Middle East.
1,715
1,651
3.9%
16,995
15,702
8.2%
Asia..
78,039
72,160
8.1%
806,668
735,630
9.7%
Oceania......
630
694
-9.2%
6,547
6,817
-4.0%
Total
123,979
116,721
6.2% 1,257,636 1,162,923
8.1%
China.......
Japan...
54,673
9,480
49,856
9,506
9.7%
-0.3%
United States..
7,294
6,543
India(e).
6,150
5,887
Country
580,787
90,502
522,964
91,439
11.1%
1.0%
11.5%
72,020
67,429
6.8%
4.5%
60,056
57,066
5.2%
South Korea
6,086
5,167
17.8%
56,712
47,861
18.5%
Russia(e)......
5,915
5,654
4.6%
57,453
55,382
3.7%
Germany..
3,685
3,845
-4.2%
37,813
36,813
2.7%
Turkey.....
3,084
2,747
12.3%
28,142
23,826
18.1%
Ukraine(e)....
3,070
2,939
4.5%
29,616
27,554
7.5%
Brazil
2,891
2,972
-2.7%
29,732
27,856
6.7%
All Others....
21,651
21,605
0.2%
214,803
204,733
4.9%
Source: World Steel Association, 12/11; e=estimate
Graph 1: World Crude Steel Production
Source: World Steel Association, 12/11; in million metric tons
-2-
Graph 2: World Steel Capacity Utilization Ratio
Source: World Steel Association, 7/11
Table 4: Top 20 Crude Steel Producing Countries, October & YTD 2011
Rank
1
2
Country
China
Japan
Oct '11
54,673
9,480
Oct '10
49,856
9,506
% Chg
9.7%
-0.3%
YTD '11
580,787
90,502
YTD '10
522,964
91,439
% Chg
11.1%
-1.0%
US
7,294
6,543
11.5%
72,020
67,429
6.8%
India
6,150
5,887
4.5%
60,056
57,066
5.2%
South Korea
6,086
5,167
17.8%
56,712
47,861
18.5%
Russia
5,915
5,654
4.6%
57,453
55,382
3.7%
Germany
3,685
3,845
-4.2%
37,813
36,813
2.7%
Turkey
3,084
2,747
12.3%
28,142
23,826
18.1%
Ukraine
3,070
2,939
4.5%
29,616
27,554
7.5%
10
Brazil
2,891
2,972
-2.7%
29,732
27,856
6.7%
11
Italy
2,700
2,464
9.6%
24,037
21,564
11.5%
12
Taiwan
1,650
1,744
-5.4%
18,611
16,299
14.2%
13
Mexico
1,540
1,462
5.3%
15,076
13,919
8.3%
14
France
1,412
1,374
2.8%
13,325
12,999
2.5%
15
Spain
1,329
1,419
-6.3%
13,470
13,985
-3.7%
16
Iran
1,085
1,044
3.9%
10,903
9,829
10.9%
17
Canada
1,050
1,012
3.8%
10,792
10,892
-0.9%
-2.3%
18
UK
821
826
-0.6%
8,131
8,323
19
Poland
760
713
6.7%
7,338
6,807
7.8%
20
Austria
634
673
-5.8%
6,472
5,970
8.4%
Source: Worldsteel.com, 11/22/11; in 000 tonnes
-3-
Table 5: US Steel Imports, October & YTD 2011

Country
Japan
EU
Canada
Brazil
Korea
Mexico
Russia
China
Australia
South Africa
Indonesia
Turkey
Ukraine
India
Others
Total
Oct 11
153
324
561
264
213
179
37
105
96
7
2
40
28
41
142
2,191
Oct '10
122
355
470
57
202
271
91
57
23
11
7
30
1
72
119
1,888
% Chg
25.6%
-8.7%
19.3%
364.0%
5.3%
-34.1%
-58.8%
83.7%
316.8%
-39.9%
32.2%
2655.0%
-43.4%
19.5%
16.0%
YTD '11
1,681
3,537
5,180
2,533
2,440
2,491
1,227
1,056
769
127
44
609
319
666
1,504
24,182
YTD '10
1,235
3,590
5,771
680
1,693
2,451
1,237
727
458
86
27
524
103
703
986
20,271
% Chg
36.1%
-1.5%
-10.2%
272.6%
44.1%
1.6%
-0.8%
45.2%
67.9%
47.2%
63.7%
16.2%
209.3%
-5.3%
52.6%
19.3%
Source: Steel Guru, 11/30/11; in 000 tons
Table 6: US Steel Exports by Region, YTD 2011

Region
NAFTA
Non NAFTA*
EU
Africa
Total Asia
Total Exports
YTD '11
8,388,231
993,711
459,316
220,678
845,376
11,022,982
YTD '10
7,839,035
931,856
356,263
95,139
768,927
10,059,250
% Chg
7.0%
6.6%
28.9%
132.0%
9.9%
9.6%
Source: AIIS, 12/19/11; *Western Hemisphere; in tons
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.
-4-
Table 7: US Steel Exports by Country, October & YTD 2011

Country/Region
Canada
Mexico
Africa
EU
Other Asia
Other W. Hemi
Panama
Taiwan
Brazil
Peru
India
China
Dom Republic
Colombia
Korea
Venezuela
Australia
Pakistan
Others
Japan
Singapore
Ecuador
Trin & Tobago
Russia
UAE
Argentina
Turkey
Chile
Vietnam
Total
Oct '11
565,918
310,773
54,948
36,347
23,472
22,110
18,893
17,781
17,255
15,133
14,026
10,521
5,628
5,399
5,305
4,254
3,476
2,964
2,452
2,323
2,212
1,996
1,303
1,273
1,261
1,192
1,108
978
834
1,151,135
Oct 10
521,853
251,956
30,844
30,014
19,445
23,496
9,056
8,518
9,004
1,470
20,038
9,920
6,741
10,857
4,759
3,743
2,035
3,888
1,178
1,988
4,512
5,127
1,686
775
1,626
1,136
481
1,090
7,824
995,060
% Chg
8.4%
23.3%
78.1%
21.1%
20.7%
-5.9%
108.6%
108.7%
91.6%
929.5%
-30.0%
6.1%
-16.5%
-50.3%
11.5%
13.7%
70.8%
-23.8%
108.1%
16.9%
-51.0%
-61.1%
-22.7%
64.3%
-22.4%
4.9%
130.4%
-10.3%
-89.3%
15.7%
YTD 11
5,574,166
2,814,065
220,678
459,316
222,095
236,670
101,510
158,774
117,850
104,885
142,034
127,992
187,905
93,976
63,049
56,457
30,181
27,634
48,550
17,399
31,834
38,671
16,543
7,324
23,118
12,792
29,615
26,452
31,447
11,022,982
YTD 10
5,703,876
2,135,159
95,139
356,263
212,627
151,357
71,135
90,824
128,721
87,464
158,374
104,895
236,809
95,987
68,234
57,649
27,004
39,081
14,292
13,923
37,700
37,990
15,262
8,123
20,159
12,279
18,611
37,203
23,110
10,059,250
Source: AIIS, 12./19/11; in tons
Table 8: US Exports of Ferrous Scrap by Destination, October & YTD 2011

(in 000 tonnes)
Canada
China
Hong Kong
India
Japan
Malaysia
Mexico
South Korea
Taiwan
Thailand
Turkey
Others
Total
Sep
107
374
9
153
5
56
32
189
359
83
458
258
2,082
Aug
129
467
6
191
8
45
53
338
394
85
800
262
2,777
Source: American Metal Market, 11/18/11
-5-
Jul,
124
320
7
91
47
115
46
196
293
4
378
248
1,868
YTD 11
1,165
3,239
86
893
222
803
428
2,395
2,643
616
4,319
2,085
18,895
YTD 10
1,081
2,240
75
670
154
680
498
2,258
1,947
335
2,991
1,822
14,751
% Chg
7.8%
44.6%
15.0%
33.3%
44.1%
18.0%
-14.0%
6.1%
35.7%
83.6%
44.4%
14.4%
28.1
% Chg
-2.3%
31.8%
132.0%
28.9%
4.5%
56.4%
42.7%
74.8%
-8.4%
19.9%
-10.3%
22.0%
-20.7%
-2.1%
-7.6%
-2.1%
11.8%
-29.3%
239.7%
25.0%
-15.6%
1.8%
8.4%
-9.8%
14.7%
4.2%
59.1%
-28.9%
36.1%
9.6%

Table 9: Top 15 Global Container Fleet Operators, November 2011
Current Fleet
% Global
Fleet Operator
Fleet
TEU
1
APM-Maersk
15.9%
2,507
2
Mediterranean Ship
13.1%
2,059
3
CMA CGM Group
8.5%
1,348
4
Cosco
4.1%
642
5
Hapag-Lloyd
4.0%
633
6
Evergreen Line
3.9%
616
7
APL
3.8%
599
8
China Shipping
3.3%
525
9
Hanjin
3.0%
477
10
MOL
2.7%
433
11
OOCL
2.6%
412
12
NYK Line
2.6%
412
13
CSAV Group
2.6%
408
14
Hamburg Sud Grp
2.6%
406
15
Yang Ming
2.2%
347
Source: Journal of Commerce, 12./19/11; Note: All subsidiaries are consolidated.
-6-
Orderbook
% Global
TEU
Fleet
529
21.1%
440
21.3%
125
9.3%
244
38.0%
132
20.9%
308
50.0%
301
50.3%
160
30.5%
244
51.1%
115
26.6%
133
32.1%
62
15.05
36
8.8%
197
48.5%
89
25.7%
Steel Mill Products: US Imports, October & 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 October
2011
2010
% Chg
590
470
25.5%
180
271
-33.6%
299
82
264.6%
368
355
3.7%
143
130
10.0%
646
541
19.4%
106
28
278.6%
7
11
-36.4%
2,340
1,888
23.9%
2011
5,210
2,492
2,843
3,581
2,257
6,932
881
135
24,331
212
1,066
322
724
16
2,701
10,864
4,346
6,248
172
219
721
322
610
16
Source: AISI; *includes Russia
Update #269
-7-
-3.2%
47.9%
0.0%
18.7%
0.0%
Year-to-Date
2010
% Chg
5,771
-9.7%
2,451
1.7%
910
212.4%
3,590
-0.3%
1,922
17.4%
4,997
38.7%
537
64.1%
93
45.2%
20,271
20.0%
2,518
6,918
3,878
6,785
173
7.3%
57.0%
12.1%
-7.9%
-0.6%
Locker Associates, Inc.

LOCKER ASSOCIATES is a business-consulting firm that specializes in enhancing the
competitiveness of businesses and industries on behalf of unions, corporate and government
clients. By combining expert business and financial analysis with a sensitivity to labor issues,
the firm is uniquely qualified to help clients manage change by:
leading joint labor/management business improvement initiatives;

facilitating ownership transitions to secure the long-term viability of a business;
conducting strategic industry studies to identify future challenges and opportunities;
representing unions in strategic planning, workplace reorganization and bankruptcy
formulating business plans for turnaround situations; and
performing due diligence for equity and debt investors.
Over the last 28 years, the firm has directed over 225 projects spanning manufacturing,
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
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AEIF-IAM/AK Steel Middletown
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US Steel Joint Labor-Mgmt Comm
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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

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Steel Industry Update/269

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 Dynamis SteelBenchmarker, Spears & Associates, 12/11

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