Dear Customers

For those of you that do not subscribe to the online steel journals we feel that it is important to highlight some of the recent media headlines and price increase announcements made by leading producers:

News article bullet points over the last 7 days:

· Steel scrap shortage is fuelling a revival in long product prices in Europe.

· US scrap prices surge sharply in November 2012; up almost $55pt on the previous month.

· Scrap import prices are rising in East Asia, with suppliers hiking offers and withholding supply.

· One of Europe’s largest producers of flat rolled ‘ILVA’ risks shutdown on Dec 14 due to raw material shortage.  The plant also has on-going legal battles relating to environmental pollution issues, which could force a complete or partial closure of the works. This week Prosecutors obtained a court order to seize all the steel produced in the last four months to partially cover likely funds. To add to Ilva’s woes it is reported this morning that a heavy storm, like a tornado has devastated its Steel Mill in Taranto causing serious damages mainly to port infrastructures as well as causing a fire inside the mill. Damage has also been reported in coke ovens, the Blast Furnace and Converters.

· Peiner Träger GmbH of Salzgitter Group has announced an increase of EUR 100 per tonne on all its European steel section prices.

· Duferdofin-Nucor announced a further $25pt price increase for sections yesterday taking their total increase to $45pt with immediate effect.

· Tata Steel UK has issued a letter to all UK customers announcing a £30pt price increase on all newly produced long and flat rolled products.

· ArcelorMittal has announced a Euro 40pt increase on flat rolled products with similar increases likely to be announced on long products.

· Spanish-based Celsa Group has announced its intention to lift its section price offers by €50p/t with immediate effect. They also warned that similar increases will follow on wire rod and merchant bar.

· The threat of anti-dumping duties still hangs over Turkish hollow sections imports with duties rumoured to be up to a potential 10% premium. · Rebar price hikes of $35pt in the US market are seen to be sticking.

· Bullish mood grows in Europe, N. America according to The Steel Index’s latest 3 month forward survey.

All Steels Trading Ltd feels that it is important to convey such news to give all of our customers fair warning of price advancements, which we will be making on both our stock and forward offers over the weeks ahead.  The next few days will therefore present some of the last opportunities to avoid the price escalation that is clearly going to unfold.

Regards

Laurence