Trade Panel – SMA Annual Members Conference Alan H. Price May 1, 2013

Overview  Trade case status  WTO cases  Current trade negotiations  Scrap barriers  Legislation and other issues 2

Trade Case Status  Current U.S. trade orders include: Hot-Rolled: India, Indonesia, Thailand, China, Ukraine, Taiwan, and Russia. Sunset review hearing and briefing stage in Fall 2013 CTL Plate: Russia, Ukraine, China, India, Indonesia, and Korea Rebar: Belarus, China, Indonesia, Moldova, Latvia, Poland, and Ukraine. Ongoing sunset review; vote in June 2013 Wire Rod: Brazil, Indonesia, Mexico, Moldova, Trinidad/Tobago, and Ukraine. Sunset review to be initiated in June 2013 Other: Various pipe and tube products; downstream steel products such as steel grating 3

Trade Case Status (Cont.)  Key Issues: China is under order and walled off from U.S. market in core product lines (plate, hot-rolled, rebar) New orders on downstream products  Grating, wind towers, high pressure steel cylinders, nails Key orders subject to sunset reviews in 2013/2014 (rebar, hot-rolled, wire rod) Composition of the ITC 4

WTO Cases  China - Raw Materials: In January 2012, the WTO’s Appellate Body largely upheld the panel’s original findings that China’s restraints on exports of bauxite, coke, fluorspar, magnesium, manganese, silicon carbide, silicon metal, and zinc violate its WTO obligations. China has complied by removing its export restraints on these products, as of January 1, 2013  China - Rare Earths: In March 2012, the United States filed a WTO case against China’s export restrictions on rare earth elements, molybdenum, and tungsten; briefing is now ongoing in this case  U.S. — Countervailing Measures (China): China has filed two WTO cases contesting the United States’ application of the CVD laws to China. Panels in both cases were established in late 2012  U.S.— Carbon Steel (India): India has filed a case disputing the imposition of countervailing duties by the United States on certain Indian hot-rolled carbon steel flat products. A panel was established in August 2012, and its members were selected in February India filed its first written submission in April

Current Trade Negotiations  Trans-Pacific Partnership (“TPP”) Key issues include disciplines on SOEs, rules of origin, and currency manipulation (with Japan poised to join TPP talks)  US-EU Transatlantic Trade and Investment Partnership Ensure no weakening of U.S. trade remedy laws or the Buy America requirements Include disciplines on SOEs  Renewal of Trade Promotion Authority (“TPA”) TPA legislation is likely to be introduced to facilitate the above-noted trade negotiations 6

Scrap Barriers  Approximately 30 countries around the world maintain export restrictions on steel scrap  Recently imposed restrictions include: Argentina imposed a year-long export ban in August 2012 Armenia increased its export duty, to 80 times the former amount, in October 2012  U.S. scrap exports decreased from approximately 24.3 million MT in 2011 to approximately 21.4 million MT in However, exports so far in 2013 are up from the same period in

Legislation and Other Issues  Evasion and circumvention legislation ENFORCE and PROTECT Acts: the ENFORCE legislation has stronger enforcement provisions, and would establish procedures and clear deadlines for CBP  Bills moving this year TPA and Customs Reauthorization – possible vehicles for currency bill and other legislation to strengthen trade laws  USTR and Commerce Secretary nominations  Effects of sequestration on Customs (furloughs) and Commerce (no verifications)  Steel is working with CSUSTL to strengthen U.S. trade laws; retailers are working to weaken 8