Steel - the road forwardNicholas Walters

Steel: A key driver of the world’s economy

Steel is everywhere in your life

Sustainable steel: steel at the heart of the green economy

Life Cycle Assessment (LCA): New solutions for new times

Environmental impact: use phase often dominates

% contribution of each life cycle phase

6

Raw materials Materialproduction

Manufacturing Use phase End of life

The use phase of products often has the greatest environmental impact Aim of regulations: to reduce use phase impacts Steel industry involvement to improve use phase Material production and end-of-life become more important Move to lighter weight, higher strength steels

Environmental impact: use phase often dominates

% contribution of each life cycle phase

7

The use phase of products often has the greatest environmental impact Aim of regulations: to reduce use phase impacts Steel industry involvement to improve use phase Material production and end-of-life become more important Move to lighter weight, higher strength steels

Raw materials Materialproduction

Manufacturing Use phase End of life

Global economic trends

Global growth expected flat in 2013 but developing economies outlook improving

9

Source: Global Insight (January 15, 2013), worldsteel

Global GDP developments (%, Real 2005 USD billions)  2009 2010 2012 2013EU27 -4.3 2.0 -0.2 0.1NAFTA -3.2 2.6 2.3 1.9S.America -0.3 6.0 2.3 3.3CIS -6.8 4.9 3.6 3.6Africa 2.7 4.7 5.0 4.4Middle East 1.3 5.9 3.3 2.2Asia 1.8 7.7 4.9 4.7Global -1.9 4.2 2.6 2.5

Emerging markets drive steel demand at the margin

2012 another record year for apparent steel use

China’s share of global demand at peak levels

Source: worldsteel

Source: Global Insight & worldsteel

10

0.0

200,000.0

400,000.0

600,000.0

800,000.0

1,000,000.0

1,200,000.0

1,400,000.0

1,600,000.0Developing ex China China Developed

28%

45%

26%

56%

16%

27%

Structure of real GDP & Apparent steel use  Developed Developing ex China China  GDP ASC GDP ASC GDP ASC

2000 78% 56% 18% 27% 3.6% 16%2005 75% 40% 20% 26% 5.0% 33%2010 70% 24% 22% 31% 7.6% 45%2012 69% 23% 23% 32% 8.5% 45%

Global apparent steel use (Billions of tonnes, finished)

Other key trends shaping the industry

Demographics and its impact on demand

12

Source: United Nations, worldsteel

Urbanisation trends indicate concentration to larger cities

13

Distribution of urban population by type of city:

1970 2010

Source: United Nations

Urbanisation trends in developing countries contribute to significantly higher steel intensity vis-a-vis developed countries.

While developing countries are less steel intensive in both industrial and consumer goods.

Developing regions more steel intensive in important use sectors

Source: worldsteel

14

Construction Industrial goods Consumer goods0%

10%

20%

30%

40%

50%

60%Developing Developed

What future for the Chinese automotive sector?

15

Volatility of raw materials

16

Steelmaking capacity

Source: OECD

17

Changes in technology

18

The future

Design requirements

20

Efficient and optimised production processes

21

Sustainability must apply over the life cycle of steel- Not possible without supply chain collaboration

22

worldsteel.org