Market in early recovery

The global steel sheet market appears to be heating up
faster than expected. The apparent reason for this
development appears to be booming global steel demand.

WSD in its last report forecast that a price improvement
might occur later in the first quarter of 2006, with the
triggering event being news that the Chinese government was
taking actions to sharply restrict steel exports. In fact,
so far this year, no actions by the Chinese government have
occurred. Based on reported data, Chinese steel exports
have not yet spiked even though their bookings are up, say
our contacts. Exports were moderate in both November and
December and lower in the second half of 2005 than the first
half.