1. © Metal Expert Iran steel export: perspectives and competitiveness in MENA 3 rd Iran Steel Export Perspectives Conference September 7, 2016, Dubai, UAE Yuliya Filali Ansary, Editor MENA and Turkish market Metal Expert

2. © Metal Expert 1.Iran’s exports on growth track 2.MENA remains promising market for billets and longs 3.Competitiveness of Iranian suppliers in MENA and alternative outlets Contents

3. © Metal Expert 1.Iran’s exports on growth track

4. © Metal Expert Iranian steel exports will top 30% of total production Iran’s steel production and exports * – year ended March 20 Note: in million t Source: IMIDRO

5. © Metal Expert Iran’s exports are still highly consolidated Four months of the current Iranian year (March 20 – July 20, 2016) * – MSC including subsidiaries Source: IMIDRO Total exports: 2.1 million t Mobarakeh Steel Company* (MSC) Khouzestan Steel Company (KSC) Esfahan Steel Company (ESCO) Khorasan Steel Company Iran Alloy Steel Company Khouzestan Oxin Steel

6. © Metal Expert Billet remains most promising export product 3.8 million t of steel exported during the previous Iranian year (ended March 20, 2016)

7. © Metal Expert 2.MENA remains promising market for billets and longs

8. © Metal Expert Longs consumption is growing, but rates are slowing down Note: in million t

9. © Metal Expert GCC and Turkey were MENA's major long products consumers in 2015 Total: 68 million t

10. © Metal Expert MENA consumption growth is slower than expected before oil price collapse +3.3 million t +5% 71.3 million t of total consumption Change in long products consumption (2017/2015) Note: in million t

11. © Metal Expert Billet spot market growth peaked in 2015 Growth rates of long and billet consumption in MENA for 2015/2014

12. © Metal Expert Margin of Turkey’s rebar producers is unsustainable Note: in $/t

13. © Metal Expert Share of billet as feedstock for longs production stops growing

14. © Metal Expert Billet spot market will increase by 1.1 million t in 2016 Note: in million t

15. © Metal Expert CIS suppliers account for a half of MENA's spot billet shipments Total: 17.8 million t in 2015

16. © Metal Expert Spot billet shipments in 2015, by consuming country Total: 17.8 million t

17. © Metal Expert 3.Competitiveness of Iranian suppliers in MENA and alternative outlets

18. © Metal Expert How do buyers find competitive offers?

19. © Metal Expert GCC case: square billet production cost of main suppliers Note: in $/t

20. © Metal Expert Turkey case: square billet production cost of main suppliers Note: in $/t

21. © Metal Expert Thailand case: square billet production cost of suppliers Note: in $/t

22. © Metal Expert Conclusions  Demand for billet remains generally strong in MENA, but varies depending on sales destination  MENA’s billet consumption will grow by only 1.1 million t in 2016  Turkey and GCC will remain major billet consumers in the Middle East, but the role of Egypt is increasing  Chinese speculative price policy based on futures will leave space for alternative billet suppliers in the region  Suppliers from China are not following cheap-export strategy any more  Iran producers are quite competitive in traditional and alternative markets in terms of production cost

23. © Metal Expert The most up-to-date, comprehensive, reliable and useful data on Middle East long product markets Data structure and periodicity  cost analysis and suppliers' margins (updated monthly);  capacity database includes current facilities and ongoing projects with estimated date of implementation (updated quarterly);  market structure analysis by country: supply and consumption (updated quarterly). Annual subscription cost: $3500 Subscribers will receive  statistical packages, updated monthly and quarterly in Excel;  quarterly analytical report with summary of key factors and trends, which influencing regional markets. Subscription, trials: +38 056 231 42 23 +38 056 370 12 06 +38 056 370 12 07 podpiska@metalcourier.com Metal Expert has great pleasure to present its new product – MENA Billet & Longs. Datastream

24. © Metal Expert Thank you for your attention! Yuliya Filali Ansary Editor MENA and Turkish market Metal Expert Tel.: +38 056 370 12 06 (ext. 456) y.filali@metalexpert-group.com