Shipbuilding Industry CCMI/057 Competitiveness of the Metals Industries Shipbuilding Industry Brussels, 30 Sept. 2008

New orders, completions and orderbook

New orders, completions and orderbook

Turnover of main shipbuilding areas

Steel Price Evolution European Index World Index Asian Index

European Market Share by Ship Types Less steel-intensive Ships Steel-intensive Ships

Conclusions Shipbuilding sees a clear impact of price differences in the steel market Due to time-gap between contract signature and delivery, yards take the full inflation risk Level playing field for raw material is essential for steel consumers acting in a global environment Effective contribution of down-stream users to climate change jeopardised

Comments on the Draft Opinion Importance of Sectoral action; iron&steel direct employment is 1/30 of the 23 million jobs mentioned Climate change: additional costs for steel producers will harm also down-stream users and their ability to contribute to the climate change challenge “Global agreements” must not move the costs to the down-stream markets (e.g. by trade restrictions) R&D: effective research done in sub-segments

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Shipbuilding Requirement vs. Capacity Source: SAJ, September 2006 Mill.CGT 50.0 Newbuilding Capacity Europe (6.9) Expected Completion 35.7 China (14.7) 29.5 CHINA 23.7 23.5 This slide is the break-down of the capacity evaluation prepared by the Japanese Shipbuilding Associations EUROPE Newbuilding Requirement Korea (15.8) KOREA Japan (10.0) JAPAN Source: SAJ

Shipbuilding Requirement vs. Capacity Source: SAJ, September 2008 Mill.CGT 70 CAPACITY 57 Estimated COMPLETION GAP SHIPBUILDING COMPLITION CHINA NEWBUILDING REQUIREMENT KOREA KOREA JAPAN JAPAN

Shipbuilding Price Evolution