Table of Contents
Investment Thesis.................................................................................................3
Valuation...........................................................................................................5
Investment Risks ..................................................................................................8
Supply and Demand to Remain Sound....................................................................9
Steel inventory remains stable ...........................................................................14
Exports Slowdown Ahead; Less Threat to The World Steel Market..............................16
Pricing Outlook; Introducing Our Leading Steel Price Indicators..................................20
Annual Iron Ore Bargaining Game Begins; Impact of Surging Raw Materials Cost........24
Favorable Trend of Accelerating Industry Consolidation............................................28
Global Steel Market Outlook ..............................................................................30
U.S. outlook ..................................................................................................31
Euro area......................................................................................................34
Strong demand from emerging markets...............................................................35
Appendix I – Steel Making Process ......................................................................39
Integrated mills versus minimills..........................................................................39
The integrated steel-making process ...................................................................40
Minimill steelmaking process.............................................................................44
Appendix II – Highlights Of Major Finished Steel Category.......................................45
Semi-finished .................................................................................................45
Flat products..................................................................................................45
Tubular products.............................................................................................48