1. SME September 14, 2004 Washington, DC “THE NEW STEEL…THE NEW STEEL INDUSTRY” Lawrence W. Kavanagh American Iron & Steel Institute

2. Courtesy of Metal Strategies Inc., Christopher Plummer

3. Iron ore production has not kept pace with steel production in China; imports could reach 240 million tonnes over the next few years Source: UNCTAD, TEX Report 2002-3,WSD, IISI, Hatch Internal Forecast

4. Coke production has been decreasing in every region of the world except Asia, Africa and the Middle East Region Production Trend (1991-2002 CAGR) Western Europe- 4.8% FSU- 2.4% North America- 2.5% South America- 0.2% Africa/M.E.+ 0.4% Asia+ 3.1% Oceania- 2.3% World- 0.3% Source: IISI, RAG Trading, Australian Coal, USGS, EIA, Hatch Internal Age Profile of Global Coke Making Capacity 2002 < 10 yrs.10% 11-20 yrs.32% 21-30 yrs.38% 31-40 yrs.15% >40 yrs.5% < 10 yrs.10%

5. China’s role in coke production and consumption is surpassed by its role in trade Country Market Share: Production Market Share: Trade China37%55% Japan12%11% CIS (Russia & Ukraine)12%13% US6%Net importer India4%Net importer S. Korea4%Net importer Poland3%16% World Volume (M Tonnes)35025 Source: EIA, CRU, BHPB, Hatch Internal

6. Hot-Rolled Spot Price January 1980 to May 2003 Source: Purchasing Magazine Average for Period (January 1980 to May 2003)

8. METRICS – STEEL CONTENT 1992 Average Vehicle 3135 LBS. Curb Wt. 2003 Average Vehicle 3358 LBS. Curb Wt. Lbs. Per Vehicle % Steel in Vehicle 1998 Average Vehicle 3262 LBS. Curb Wt

9. ACHIEVEMENTS - CARS ULSAB-AVC Safe – ( 5-Star Crash Rating) Affordable – ($10,000 Manufacturing Cost) Fuel Efficient - (52-68 miles/gallon) Environmentally Friendly – (2200 lbs./recyclable)

10. Infrastructure 18% Commercial Buildings 29% Residential 53% Total U.S. Spending = $900 Billion Source: DOC