1. EUROMETAL – European Federation of Steel, Tube and Metal Distribution and Trading Federation registered in Switzerland Federation Seat: Güterstrasse 78, CH-4010 Basel Post Box: 202b, rue de Hamm, L-1713 Luxembourg M: office@eurometal.net F: +352 26 459 205 T: +352 621 146 296 EUROMETAL OUTLOOK ON ECONOMIES & STEEL MARKETS A REPORT TO EUROMETAL SUBSCRIBERS JANUARY 2016 28 JANUARY 2016© Eurometal.net1

2. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 2 WORLD ECONOMIC OUTLOOK IMF: SUBDUED DEMAND, DIMINISHED PROSPECTS

3. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 3 WORLD GDP GROWTH IN 2015 IS ESTIMATED TO HAVE A LOWER GROWTH RATE THAN IN 2014. IN 2016 GDP GROWTH IS FORECASTED TO BE + 3,4 %. CIS AND LATIN AMERICA IN NEGATIVE MODE, EURO-ZONE IN LOW GEAR IN 2016 EUROMETAL CHART BASED ON IMF DATA; UPDATE: 28.01.2016 = WORLD GDP GROWTH USA 2014: +2,4 % 2015: +2,5 % 2016: +2,6 % LAT.AMERICA 2014: +1,3 % 2015: -0,3 % 2016: -0,3 % ASEAN 2014: +4,6 % 2015: +4,7 % 2016: +4,8 % INDIA 2014: +7,3 % 2015: +7,3 % 2016: +7,5 % CHINA 2014: +7,3 % 2015: +6,9 % 2016: +6,3 % CIS 2014: +1,0 % 2015: -2,8 % 2016: 0,0 % EURO AREA 2014: +0,9 % 2015: +1,5 % 2016: +1,7 % SUB-SAHARA AFRICA 2014: +5,0 % 2015: +3,5 % 2016: +4,0 % MENA 2014: +2,8 % 2015: +2,5 % 2016: +3,6 % 2014: + 3,4 % 2015: + 3,1 % 2016: + 3,4 %

4. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 4 DECELARATING WORLD GDP INDUCED IN 2015 A NEGATIVE IMPACT ON WORLD STEEL DEMAND AND WORLD STEEL OUTPUT

5. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS OCTOBER 2015 IIN 2015, WORLD STEEL PRODUCTION LOWERED BY -2,8 %, WITH PRODUCTION LOSSES REGISTERED IN ALL WORLD REGIONS, WORLD STEEL OUTPUT 2015 / 2014 IN % SOURCE: WORLDSTEEL, EUROMETAL; UPDATED 28.01.2016 WORLD STEEL APPARENT CONSUMPTION ESTIMATE 2015 / 2014 IN % EU-28 -1,8 % OTHER EUROPE - 5,7 % CIS - 4,3 % NAFTA - 8,6 % SOUTH AMERICA - 2,5 % AFRICA / MIDEAST - 0,4 % CHINA - 2,3 % OTHER ASIA - 2,1 % EU-28 + 2,3 % OTHER EUROPE + 8,6 % CIS - 10,9 % NAFTA - 2,7 % SOUTH AMERICA - 7,3 % AFRICA / MID EAST + 4,4 % CHINA - 3,5 % ASIA / PACIFIC + 1,0 % WORLD - 2,8 % WORLD - 1,7 %

6. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 6 EUROPEAN MACRO-ECONOMIC FORECASTS 2016 HAVE MIXED PROSPECTS

7. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 IN 2016, EU GDP IS ESTIMATED TO GROW SIGNIFICANTLY IN BRITISH ISLANDS, SCANDINAVIA AND BALTICS, BESIDES RECOVERY IN IBERIA WILL CONTINUE +2,6 + 1,5 +2,2 +2,9 + 4,1 +3,5 +2,2 -1,3 +3,0 +2,9 +1,5 +2,8 + 2,0 +2,7 +2,1 +1,3 + 1,7 +1,3 +2,2 +0,7 +1,7 +4,5 +1,4 XXX = % CHANGE IN GDP YEAR-ON-YEAR COMPARISON 2016/ 2015 SOURCE : EUROMETAL CHART BASED ON IMF AND EU FORECASTS, UPDATE 28.01.2016 +1,9 EURO-ZONE 2014: +0,9 % E2015: +1,5 % F2016: +1,7 % EU-28 2014: +1,4 % E2015: +1,9 % F2016: +2,0 %

8. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 8 IN EU, A MITIGATED ECONOMIC GROWTH FORECAST WILL GENERATE IN 2016 A RATHER SUBDUED GROWTH IN EU STEEL DEMAND WHEN COMPARED TO 2015

9. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 9 IN 2015, EU STEEL USING SECTORS ARE NOW ESTIMATED BY EUROFER TO HAVE GROWN BY +2,0 %, COMPARED TO +2,5 % IN 2014, LEADING TO AN ESTIMATED GROWTH OF APPARENT STEEL CONSUMPTION OF +2,3 % IN 2015, COMPARED TO +3,9 % IN 2014. FOR 2016, APPARENT STEEL CONSUMPTION IS ESTIMATED TO GROW BY +1,1 % WHEREAS REAL STEEL CONSUMPTION IS FORECASTEDTO INCREASE BY +1,4 %

10. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 10 EU-28 STEEL USING SEGMENTS – SOURCE: EUROFER JANUARY 2016 2010 2012 2011 EU STEEL END USE SECTORS FORECASTS CONSTRUCTION - 2,6 % + 3,7 % - 5,1 % -2,9 % + 1,7 % +1,8 % +2,3 % MECHANICAL ENGINEERING + 9,9 % +10,2 % - 0,5 % -3,8 % + 1,5 % -0,4 % +1,3 % AUTOMOTIVE +20,7 % + 10,9 % -4,6 % + 1,0 % + 4,9 % +7,8 % +3,2 % DOMESTIC APPLIANCES + 2,7 % - 5,5 % - 1,3 % + 0,2% -0,3 % +3,7 % +2,4 % METAL WARE & GOODS - +8,6 % +8,8 % - 2,7 % - 0,3 % + 2,5 % +1,8% +1,7 % EU STEEL DEMAND ESTIMATES AND FORECASTS CONSEQUENTLY IN 2014, TRENDS IN STEEL CONSUMPTION HAVE REVERSED INTO GROWTH MODE 2010 2011 2012 REAL STEEL COMSUMPTION +5 % +5 % - 5 % - 3,0 % +2,1 % +1,3 % +1,4 % APPARENT STEEL CONSUMPTION +22 % +6 % - 10 % - 0,2 % +3,9 % +2,3 % +1,1 % IN 2016, MAIN STEEL USE SECTORS ARE FORECASTED FOR MODERATE GROWTH EXPECTATIONS UPDATE 28.01.2016 2013 2014 SINCE 2014, EXPECTATIONS FOR MAIN STEEL USING SECTORS HAVE TURNED POSITIVE AGAIN, AFTER A SLUMP IN 2012 AND 2013. E 2015 F 2016

11. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS NOVEMBER 2015 2007 2008 2009 2010 2011 2012 2013 2014 E2015 F2016 138 185 171 139 114 137 EU APPARENT CONSUMPTION OF FINISHED STEEL PRODUCTS, IN MIO. TONS(EXCL. SEMIS) EUROMETAL FORECAST, UPDATED: 28.01.2016 145 IN 2015, EU MARKET SUPPLY IN FINISHED STEEL PRODUCTS (EXCL.SEMIS) IS ESTIMATED TO REACH 138 MIO. TONS. IN 2016, EU MARKET SUPPLY IS FORECASTED TO GROW MODERATELY IN ORDER TO LEVEL AT 139 MIO. TONS 131 135

12. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 12 IN 2015, EU STEEL PRODUCTION WAS NEGATIVELY IMPACTED, EXCEPTED IN CENTRAL EUROPE AND SCANDINAVIA

13. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS DECEMBER 2015 13 WESTERN EUROPE - 2 % SOUTHERN EUROPE - 3 % BLACK SEA & BALKAN - 6 % SCANDINAVIA 0 % EUROPEAN CIS - 4 % CENTRAL EUROPE + 4 % - 2 % - 4 % 0 % - - 6 % - 4 % + 4 % - 10 % UNITED KINGDOM - 10 % COMPARISON STEEL PRODUCTION: 2015 / 2014 IN 2015, CENTRAL EUROPE WAS THE ONLY EU REGION WITH A POSITIVE GROWTH RATE IN STEEL OUTPUT SOURCE: WORLDSTEEL UPDATE 28.01.16.

14. EUROMETAL OUTLOOK ON ECONOMIES AND STEEL MARKETS OCTOBER 2015 GDP : E2015 = +1,9 % INDUSTRIAL STEEL USER PRODUCTION: E2015 = +2,2 % CONSTRUCTION OUTPUT: E2015 = +1,8 % REAL STEEL CONSUMPTION E2015 = +1,3 % APPARENT STEEL CONSUMPTION E2015 = + 2,3 % MULTI-PRODUCT & PROXIMITY STEEL DISTRIBUTION DELIVERIES LONG STEEL PRODUCTS 2015: + 1 % FLAT SSC DISTRIBUTION DELIVERIES 2015: + 6 % EU STEEL PRODUCTION E2015:- 1,8 % 2015 SCORE BOARD EU-28 STEEL DISTRIBUTION MARKET: SOURCE & COPYRIGHT: EUROMETAL UPDATED 01.1.2015