Steel Bridge Update:Steel Bridge Update:Research, Availability, Choices & CostsResearch, Availability, Choices & Costs

Matthew F. HabenichtArcelorMittal USA

Highway Cost Conference

September 11, 2007St. Louis, MO

MarquetteInterchange

Zakim Bridge, Boston

State of the Steel IndustryState of the Steel IndustryGlobal steel economy continues strong = 3 record years of shipments.China meeting own needs with new capacity.- Potential Chinese steel exports to USA causing concerns.

Scrap prices have been up; recent surge driven by demand in Turkey, Malaysia, Thailand.- Iron ore prices also continue to rise

Plate prices had been stable.Tight availability of heat treated & heavy or ingot plates - Iraqi war effort continues strong demand at ArcelorMittal’s

Conshohocken plant for Army armor.Continued global consolidation: IPSCO, Algoma, & Oregon.

Consolidation in the US Plate IndustryConsolidation in the US Plate Industry

IPSCO starts up

Montpelier

Key

Stra

tegi

c H

ighl

ight

s

Jindahl starts up Houston

Bethlehem acquires Lukens

IPSCO starts up Mobile

(Nov 01)

ISG acquires

Bethlehem

ISG restarts Burns Harbor

110 mill

Nucor starts up Hertford (Oct 01)

ISG acquires

USS Gary Plate

Mittal acquires

ISG

Nucor acquires

Tusca loosa (June 04)

H.I.G. acquires Citisteel

Oregon Shuts down

Fontana

Key

Ope

ratio

nal H

ighl

ight

s

5,296 5,453 4,898 5,514 5,079 4,873 5,095 5,609 6,042 6,982 7,000 (1Q07 annualized)

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Bethlehem shuts down Sparrows

Point 160 mill

Bethlehem Idles Burns Harbor 110

mill

Gulf States shuts down

Geneva shuts down

US Mill Carbon & Alloy Cut Plate Shipments in thousands of tons - Source AISI

AM USA restarts

Gary 160 mill

SSAB acquires

IPSCO

Oregon shuts down melt shop

Arcelor & Mittal merge

Evraz acquires Oregon

2007- 2010 forecasts are based on CRU’s growth estimations

The main drivers of future growth are the energy markets (linepipe, wind towers, offshore)

US plate market is attractive and has a US plate market is attractive and has a significant growth potential by 2010significant growth potential by 2010

US market - Cut Plate Apparent Consumption

40004500500055006000650070007500800085009000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

US plate market is attractive and has a US plate market is attractive and has a significant growth potential by 2010significant growth potential by 2010

EuropeEurope237kt237kt

South South AmericaAmerica21kt21kt

ChinaChina37kt37kt

AsiaAsia631kt631kt

OceaniaOceania73kt73kt

CanadaCanada316kt316kt

MexicoMexico1kt1kt AfricaAfrica

46kt46kt

CISCIS233kt233kt

USA 2006 (AISI Cut Plate)USA 2006 (AISI Cut Plate)•• Consumption 7,473 ktConsumption 7,473 kt•• Production 6,982ktProduction 6,982kt•• Total Imports 1,595 ktTotal Imports 1,595 kt•• Exports 1,115 ktExports 1,115 kt•• Net Imports: 480 ktNet Imports: 480 kt

Exports 1,115 kt

Import flows in USExport flows from US

AM USA is #3 supplier of the US Cut Plate AM USA is #3 supplier of the US Cut Plate domestic shipments based on 2006 datadomestic shipments based on 2006 data

IPSCO31%

NUCOR27%

AM USA26%

OREGON6%

LETOURNEAU1%JINDAL

3%CLAYMONT

6%

Various Welding & Design ActivitiesVarious Welding & Design Activities

Optimizing weldments & guidelines for use of HPS 70W and HPS 100W Continuing studies on the ductility, live-load deflection, superior toughness, and seismic attributes of HPS grades.Projects to develop new corrosion resistant grades of steel.

HPS Use in Bridges HPS Use in Bridges -- HighlightsHighlightsHPS grades in use in 45 States; over 250 in serviceBenefits of HPS 70W: 5 to 10% cost reduction- Largest project, Mass. Route 3 with 33 HPS bridges;

includes 100th bridge in service- Marquette Interchange in WS and Blennerhassett in WV

are projects that are major users of HPSHybrid designs with HPS 70W and 50W - For improved clearances totally HPS 70W used

HPS 100W used in NE, NY and WV; NC currentlyUse in fracture-critical members encouraged by FHWA

Steel AvailabilitySteel Availability

Millau Viaduct, France

Production Facilities for Bridge SteelsPlate and Structural Shapes (main members)

SDI

Nucor-Yamoto

Chaparral

PlateStructural Shapes

Chaparral

Oregon

IPSCO

Nucor

IPSCO

Nucor

Claymont

ArcelorMittal

Jindahl

ArcelorMittal

former USS Gary plate mill to be opened by

ArcelorMittal by end of 2007

LeTourmeau

Steel ChoicesSteel Choices

MarquetteInterchange

Traditional Steels and New HPSTraditional Steels and New HPSfor Bridge Constructionfor Bridge ConstructionA709 Similar Typical Nominal LevelsGrade ASTM Production C.E. C36 A36 HR .33 .1550 A572 HR .38 .1550W A588 HR .48 .15100W A514 Q&T .59 .16

HPS-50W - HR,CR .50 .10HPS-70W - CR, IAC,Q&T .50 .10HPS-100W - Q&T .60 .06A1010 A1010 T, N&T, Q&T NA .01

HR - Hot-Rolled, CR - Control-Rolled, IAC - Interrupted Accelerated Cooled, Q&T - Quenched and Tempered, N - Normalized

C.E. = C + Mn + Cu + Ni + Cr + Mo + V6 15 5

Steel PricingSteel Pricing

Woodrow Wilson Bridge

CRU Base Price CRU Base Price

$500$550$600$650$700$750$800$850

A-06

S-06

O-06

N-06

D-06

J-07

F-07

M-07

A-07

M-07

J-07

J-07

A-07

HR CR HDG Plate

2007

Worldwide Plate Pricing

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

$1,000

Jan-9

4Ju

l-94

Jan-9

5Ju

l-95

Jan-9

6Ju

l-96

Jan-9

7Ju

l-97

Jan-9

8Ju

l-98

Jan-9

9Ju

l-99

Jan-0

0Ju

l-00

Jan-0

1Ju

l-01

Jan-0

2Ju

l-02

Jan-0

3Ju

l-03

Jan-0

4Ju

l-04

Jan-0

5Ju

l-05

Jan-0

6Ju

l-06

Jan-0

7

Date

Spot

Pric

e, $

/tonn

e

USA

W.Europe

Japan

Far East

China

Relative Bridge Steel PricingRelative Bridge Steel PricingASTMASTM A709 Grades and A1010A709 Grades and A1010

Ste

el G

rade

Relative Pricing

Base - 3650

50W

100W*

HPS 50W

HPS 70W

HPS 100W*

A1010

1" x 96" plate* Ni &/or Mo surcharge may apply

ArcelorMittal Sales/Technical ArcelorMittal Sales/Technical ContactsContacts

Larry Pacana 610-383-3220 Eastern USJayne Atherton 219-787-7409 Western USAlex Wilson 610-383-3105 Technical IssuesJerry Shick 610-383-2589 Specifications

Latest Steel Bridge Information atLatest Steel Bridge Information at

www.ArcelorMittal.com