GREAT AMERICAN GROUP
ADVISORY & VALUATION
SERVICES
Metals Monitor October 2010
Introduction
In this Issue: Welcome to the October 2010 issue of the Metals
Monitor from Great American Group Advisory
& Valuation Services. This publication will pro-
Introduction 1 vide you with market value trends in both ferrous
and non-ferrous metals. The enclosed informa-
Carbon Steel 3 tion is based on qualified metals industry publica-
tions and key industry contacts.
Aluminum 7 The commodity nature of steel scrap, aluminum
ingot, copper cathode, and nickel warrants the
timely reporting of market value changes. The
Stainless Steel 8 timing of our mid-month Metals Monitor will cap-
ture the month-end prices that act as the basis for
pricing value-added metal mill products.
Copper 9
The Metals Monitor includes a sampling covering
most metals projects. GA internally tracks addi-
Nickel 10 tional specialty and tool steels, all raw materials for
steel, specialty steel, and primary aluminum pro-
duction and manufacturing, but we are mindful to
Metal Reference Sheet 11 adhere to your request for a simple reference
document. Should you need any further informa-
tion, please feel free to contact your GA Business
Development Officer or utilize our contact infor-
mation shown in this and all Metals Monitor issues.
GA’s metals expertise is not confined to use on
pure metals projects, but is also utilized in assuring
the accuracy and insight for all manufacturing
projects where metals are the primary or signifi-
cant raw materials regardless of the sector of fin-
ished products. This ensures that all projects and
appraisals from GA represent the full value of all
of our insights. You gain the full strength of our
many assets in every assignment for which you
engage GA.
As we begin the fourth quarter, expectations for
demand improvement have been delayed to 2011.
The effects of the recession linger, and real de-
mand improvements are not expected, especially
since the holiday period is typically a wind-down
period.
Continued high levels of employment and low
consumer confidence will keep spending in check,
although retailers remain hopeful about the holi-
day season. The automotive sector has likely seen
its most robust time for 2010 within the first half.
Since carbon flat-rolled producers were not suc-
cessful in gaining their announced price increases
in September, the hopes for additional per ton
revenues in 2010 are dashed.
Even the energy sectors are showing signs of flat
volumes for the balance of 2010. The oil and gas
market for metals continues improvement well
above 2009, although the North American active
rig count in September fell slightly from August.
September 2010 was 64% better than September
2009, but the active rig count was down a net 23
rigs in North America. The U.S. rig count in-
creased by 17 in September over August, but the
count in Canada fell by 40 rigs. Active rigs in the
U.S. totaled 1,655, and the total North American
rig count was 2,002. As a comparison, the total
North American active rig count in September
2009 was only 1,217. According to petroleum
industry consulting firm Baker Hughes and Steel
Business Briefing, North American rig activity
generally represents approximately 65% of the
world’s total.
Primary metallic values for aluminum, copper,
nickel, and zinc are all continuing to rise, with the
October month average to date up over Septem-
ber. However, ferrous scrap markets have cor-
rected and begun to decline for the October
month average to date compared to September.
Raw materials pricing is varied, with slight declines
in iron ore and slight increases in alumina. Ferro-
alloys such as ferrosilicon (75% contained) have
continued to increase and metallics such as molyb-
denum remain up. The major individual product
points will be covered in our product specific
commentary and our reference sheets.
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ABOUT GREAT AMERICAN GROUP
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Ryan Mulcunry Bob Moore

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770-551-8114

Bill Soncini Alex Tereszcuk

Vice President - Midwest Senior Appraiser—Metals and Manufacturing
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312-777-7945

Drew Jakubek Dan Tracy

Vice President - Southwest Senior Appraiser—Metals and Manufacturing
djakubek@greatamerican.com dtracy@greatamerican.com
972-265-7981

John Little
Senior Appraiser—Scrap and Recycling
jlittle@greatamerican.com

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CARBON STEEL

Ferrous scrap prices in October have declined and seem to

be falling prematurely to the fourth quarter holidays. Auto-
motive shred scrap prices are down $11 per gross ton (GT =
2,240 pounds) in October to date from the September
month average and may be seen in the graph below. The
Chicago busheling price for consumers is down over $17 per
GT from September and HMS (heavy melt steel) is down
over $12 per GT from the September average. The scrap
price declines summarized above relate to published markets,
and GA consistently uses the Chicago consumer market for
tracking all scrap categories in order to be consistent with
steel mills and the monthly surcharge mechanism. Steel mills
are using the changes in Chicago automotive shred pricing
for indexing monthly price adjustments to contract business
and spot business. However, while we are graphing the
automotive shred at $355 per GT, we know of limited trad-
ing directly to steel mill consumers at levels as low as $340 to
$345 per GT.

Other news in iron and scrap substitute raw materials include

Nucor’s plans to build a DRI (direct reduced iron) plant in
Louisiana instead of Brazil. Nucor is proceeding with its
construction plans for this $750 million new plant, which
replaces its original plans for coke oven batteries and a blast
furnace for pig iron. The carbon footprint is cited as the
reason for the change from coke ovens and a blast furnace.
The DRI facility represents approximately one-third of the
carbon footprint and one-half of the capital for essentially
the same tonnage output of 2.5 million tons.
DRI is traditionally a cost penalty when in use in steel-
making versus pig iron, but Nucor contends technological
advances obtained in its Tobago and Trinidad DRI facilities
offset much of the cost premium. Nucor CEO Dan Di-
Micco cites a concern for the long-term cost of potential
legislation taxing greenhouse carbon gases, and the DRI op-
tion is a better option than coke ovens and a blast furnace.

MONTHLY AVERAGE AUTO SHRED SCRAP PRICE PER

GROSS TON
AUGUST 2009 THROUGH OCTOBER 8, 2010
$450

$400

$350

$300

$250

$200

$150

$100

$50

$0

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CARBON STEEL

AVERAGE UTILIZATION OF US CARBON FLAT ROLLED

MILLS BY MONTH
JULY 2009 THROUGH OCTOBER 12, 2010
80%

70%

60%

50%

40%

30%

20%

10%

0%

The U.S. carbon steel mill utilization rate for September av-
eraged 70.1%, and the 2010 overall mill utilization was ad-
justed to a rate of 70.65% YTD. Utilization had remained
over 70% since the week of March 14, 2010, falling in early
August below 70% for more than a week. Severstal North
America has stated it will maintain the idled status on the
furnaces at the Sparrows Point, Maryland and Wheeling
Pittsburgh plants, running only finishing processes and even
those only at partial capacities.
Without implementations of the intended increases, the die
is cast for downward pressure. For the most part, prices are
currently flat, but further declines are anticipated. When coil
prices are calculated at transaction prices net of discounts
and rebates, the results show a $10 per NT drop at mini-
mum.

Decreases in utilization and production occurred in most all

regions of North America, and although one week in Sep-
tember saw utilization at over 72%, the month end average
fell 0.5% from the August level of 70.6%. October to date is
fluctuating between 69% and 70%. As a comparison, world
steel mill utilization continues to operate at or above 74%,
and German steel assets are operating at above 80%.

The flat-rolled mills’ intended increases of $30 to $40 per net

ton (NT = 2,000 pounds) for September did not happen,
and in fact some price declines have occurred in the spot
markets. Scrap and raw material prices began to decline, and
coupled with crippled demand, the attempts at raising prices
fell flat. Scrap prices are used as the index for monthly sur-
charge adjustments by mills/producers. These declines in
finished goods would normally automatically indicate price
declines unless mills were successful in gaining base price
increases.

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CARBON STEEL
Market sources are now predicting that hot-rolled band spot
prices of around $500 per short ton will be prevalent within
weeks. According to Steel Business Briefing, one southern pur-
chaser with a large flat rolled service center company stated,
"Ultimately, I think that we are headed for $500 a ton
sooner, rather than later." A midwestern stocking service
centers representative indicated he does not see much prom-
ise in the market through year-end, "other than rumors of
some big players wanting to make large purchases in the
hope that the New Year will start off good."
High-grade zinc, of which over 47% is used for galvanizing
carbon steel, continues to increase in value, with the current
LME (London Metal Exchange) cash price for high grade at
$2,232 per metric tonne (MT = 2,204.62 pounds) or
$1.01242 per pound plus a premium of $0.0475 per pound.
The current value represents pricing another $0.05 per
pound over September and total increases in zinc pricing of
nearly $0.30 per pound since July. High-grade zinc values
were at or over $1.00 per pound from November 2009 until
May 2010 and were falling as we entered the beginning of
the summer.
The lack of recovery in the construction sector continues to
depress the volume for carbon steel long products and will
depress pricing as scrap prices fall. Mini-mill long products
producers have pushed through price increases on the back
of increased scrap prices in September, but as scrap is now
falling, those gains may be short lived in the balance of 2010.
Products such as merchant and structural bars and shapes,
structural tubing, and pipe and plate products all have exhib-
ited flat volumes, and pricing has moved mostly in tandem
with scrap values in the form of changes in monthly sur-
charges.
Demand for plate, bar, and structural shapes relies strictly on
the performance and relative strength in U.S. agricultural and
earth-moving equipment sales, which are largely dependent
on exports.
Steel Business Briefing reported Gerdau Ameristeel CEO
Mario Longhi saying that the U.S. congressional elections in
November could provide much needed clarity to uncertain-
ties surrounding the American economy and regulatory poli-
cies that will significantly impact the steel industry going
forward. Mr. Longhi does not see a recovery in essential
market sectors for the longs products maker, such as non-
residential construction, for another two years, or until 2012.
Longhi did say that he believes U.S. steelmakers are seeing a
"validation of the bottom" of the market and the direction
from here is up.
Nucor Steel, the market leader in producing long products in
the U.S., will decrease its price for merchant bar effective
immediately, following a $30 per long ton decrease in the key
benchmark scrap price. According to a letter Nucor sent to
customers, effective Wednesday, October 13, the company
decreased its raw materials surcharge by $30 per short ton
and is also leaving the base price unchanged, for a $30 per
short ton net decrease. It was also reported that Steel Dy-
namics Inc.'s Roanoke bar mill will follow the move and it is
likely that North America’s second largest mini-mill pro-
ducer, Gerdau Ameristeel, will do the same. Nucor also
announced it will keep its net transaction price for wide
flange beams and rebar unchanged, despite the dip in the
shredded scrap price used to set surcharges.
Market conditions for MBQ (merchant bar quality) and SBQ
(special bar quality) bars for the fourth quarter are starting
off slow. The MBQ market is still impacted by slow de-
mand, as inventory levels at service centers are adequate for
current requirements. However, as stated previously, price
increases announced by the major producers of MBQ bars,
as well as bar and structural shapes, have been implemented,
but will be mostly offset by reduced scrap surcharges. Price
increases for SBQ products appear to have taken hold. SBQ
products have seen some tightening in production supply, as
the major suppliers of SBQ did not increase capacity as fast
as the increase in demand. This has meant longer lead times
from major suppliers, stretching out to January and February
2011 for most all SBQ bars and even March 2011 from some
producers. Imports of SBQ have much longer lead times
and have experienced price increases commensurate with
North American mills.
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CARBON STEEL
There have been some improvements in the market demand
for SBQ products within the capital goods sector from heavy
truck and heavy equipment manufacturers, but most particu-
larly from the oil, gas, and energy-related sectors including
wind tower construction. The non-residential construction,
housing, and appliance industries still lag. One Midwestern
service center executive reports that heavy equipment manu-
facturers like Caterpillar and John Deere are also putting
pressure on SBQ supply, stretching lead times out to 28 to
32 weeks in some cases.
Recent capital improvements and expansions announced
include U.S. engineered bar maker Gerdau Macsteel’s plans
to spend $67 million at its Monroe, Michigan facility, adding
225,000 short tons of capacity by 2013. This expansion in-
cludes a new caster and upgrades to the mill’s melt shop and
general infrastructure. Clearly this and other possible capital
investments offer no immediate improvement in the avail-
ability shortfalls of today.
As reported last month, cold finished bar imports have in-
creased approximately 14% 2010 year-to-date over 2009. As
with the overall SBQ markets, there have been improve-
ments in the market demand within the capital goods sector
for SBQ products, particularly with heavy truck and heavy
equipment manufacturers, and particularly the energy indus-
tries.
ERW mechanical and structural tubes continue to mottle
through the effects of the construction recession. ERW
mechanical and structural tubing is currently used for agricul-
tural and earth-moving equipment frames and infrastructure
to the energy markets. Other than the energy market, the
demand in equipment is still predominantly driven by ex-
ports.
OCTG demand and pricing are stable with some increasing
prices resulting from the ITC (International Trade Commis-
sion) rulings on dumping of Chinese pipe in the U.S. markets
resulting in implementation of taffies and possibly counter-
vailing duties. As reported in the beginning of this issue,
active rig counts in the U.S. continued to show growth of 17
rigs, while the Canadian rig count declined by 40 for a net
decline in North America of 23 rigs. Oil country tubulars in
North America should continue to realize some stability as
Canada is now filing complaints regarding dumping of Chi-
nese pipe. In the U.S. market, retroactive penalties are in
process of implementation.
Global oil and gas drilling activity, as measured by active rigs,
is regarded as a useful barometer of the OCTG market. The
U.S. has proved the steadiest performer coming out of the
recession, so far achieving 15 consecutive month-on-month
increases in drill rig numbers, as indicated by data from in-
dustry consultant source Baker Hughes. Crude oil prices
have hovered around $80 per barrel since last year, which has
provided a degree of stability for those investing in explora-
tion and production. Natural gas prices have steadied at
approximately $4 per MMBtu (one million British thermal
unit) over the past six months and this too is providing sta-
bility in gas exploration and production.
As reported last month, line pipe is not as robust as drilling
rigs and does not translate to production rigs or wells. How-
ever, a shortage exists of cold drawn seamless mechanical
pressure tubes in the smaller sizes at and below 2”. Produc-
ers such as Sharon Tube, subsidiary of Wheatland Tube, part
of the John Maneely Companies, and Lakeside Steel in Wel-
land, Ontario are the major producers in North America of
this size range for cold drawn seamless. Few other cold
drawers of seamless pipes are in this size range or participate
in the line pipe market.
Long-term supply and demand effects of the advent of the
new Boomerang OCTG mill and Ontario’s Lakeside Steel’s
recent groundbreaking of a new $40 million mill in Thomas-
ville, Alabama will not be realized for some time. Commis-
sioning of the two new mills is currently scheduled for late
2011.
Further tubing and pipe news include the name change in
process for Harrow, Ontario-based John Maneely Com-
pany’s operations, which include Atlas Tube and Wheatland
Tube along with Wheatland subsidiary Sharon Tube. The
new company name is JMC Steel Group. Atlas and Wheat-
land will continue to operate and sell under their individual
names.
|6
ALUMINUM

MONTHLY AVERAGE P1020 PRIMARY ALUMINUM SHEET

INGOT PRICE PER POUND
JULY 2009 THROUGH OCTOBER 11, 2010
$1.20

$1.00

$0.80

$0.60

$0.40

$0.20

$0.00

Aluminum pricing for prime metal on the LME continues to Klaus Kleinfeld, Alcoa chairman and CEO, speaking during
rise with the September month average at $2,162 per MT or a quarterly earnings conference call on October 7, said Alcoa
$0.9807 per pound, up $0.02 per pound over August. Octo- had revised its estimate of 2010 global aluminum demand
ber aluminum values on the LME are now at $2,343 per MT upward to show 13% growth over 2009, up from the com-
or $1.0628 per pound. The Midwest premium, used to ac- pany’s second-quarter projection of 12%. Kleinfeld pointed
count for freight and handling, and equalized throughout the to declining aluminum inventory levels during the quarter as
U.S. and Canada, has remained firm but flat to date into Oc- sign of increased consumption, driving firmer aluminum
tober and is stable at $0.064 per pound. The LME value of premiums.
P-1020 primary is now $1.0628 per pound and, added to the
Midwest premium, the cost to casting and rolling mills is
now nearly $1.13 per pound. The official LME warehouse
stocks of P-1020 primary aluminum declined 63,000 MT
from September month end to total 4,331,600 MT as of Oc-
tober 11. This represents the eighth consecutive month of
decline.

As recently reported in Platts Metals Week, aluminum demand

in the U.S. and Canada (shipments by domestic producers
plus imports) totaled an estimated 11.720 billion pounds
during the first seven months of 2010, up 18% above a year
ago, according to preliminary estimates by the Aluminum
Association. The association went on to report demand for
semi-fabricated (mill) products was up 13% to a total of
8.197 billion pounds and apparent consumption (demand
less exports) in domestic markets totaled an estimated 9.922
billion pounds, 18.1% above that of 2009.

|7
ALUMINUM
It appears United Steelworkers (“USW”) and Century Alumi-
num may be close to resolving the current negotiations cov-
ering Century’s 244,000 metric ton smelting plant in Hawes-
ville, Kentucky. USW international representative Bobby
Pierson released a statement saying the two parties “made
great progress” in negotiations that wrapped up last week in
Washington. At least one more bargaining session will be
needed, Pierson said. Other union news and progress in the
aluminum industry is that USW membership has ratified a
new contract for the 350 employees at Noranda’s Gramercy
refinery. The old contract expired on September 30 and the
new five-year agreement assures no disruption of the 1.2
million MT alumina refining operation.
STAINLESS STEEL
Stainless steel mill prices are largely dependent on monthly
adjusted surcharges, which are based on nickel, chrome, mo-
lybdenum, and other metallic values from two months prior.
The two-month lag is to account for normal lead times of
stainless steel products. In theory, the stainless steel being
delivered to customers in October was made from nickel and
other metallics purchased by the mill in August. As a result,
we know the full stainless prices for November on October
1.
Aluminum extrusion makers are paying more for raw materi-
als as the billet up-charge and extra over Midwest aluminum
ingot pricing continues to increase and is approaching $0.12
per pound in some areas. The billet up-charge, which had
been at the $0.095 per pound for a long period, has now
been at or above ten cents per pound for several months. In
addition, the alloy premium from secondary aluminum pro-
ducers has moved upward, thereby affecting materials cost to
aluminum foundries and die casters.
The price for stainless steel sheet coils in T304/T304L and
T316/316L are increasing for November mill shipments by
$0.0701 and $0.0835 per pound, respectively. Other metal-
lics and items affecting stainless steel surcharges include, in
order of importance, chrome, molybdenum (Moly), iron
(referring to ferrous scrap), titanium, manganese, copper,
and energy (natural gas prices). Surcharges typically account
for well over 55% of the stainless steel pricing in the most
common Austenitic grades.
|8
COPPER

COPPER LME MONTHLY AVERAGES PRICE PER POUND

JULY 2009 THROUGH OCTOBER 11, 2010
$4.00

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

$0.00

LME values for high-grade copper and copper cathode also

continue to increase with the September month average up
$0.19 per pound over August and the October value through
the 11th up an additional $0.186 per pound over September.
The LME price for high-grade copper through October 11 is
$3.676 per pound. Coupled with the market premium of
$0.054 per pound, high-grade copper and cathode cost is
now $3.73 per pound. LME warehouse stocks of copper
continued to drop, falling by another 15,000 MT September
to October to date. Copper stocks in LME warehouses have
now declined more than 154,000 MT since March 2010.

On a humorous note, it was just last week that Daniel Breb-

ner, Deutsche Bank’s head of metals research, predicted cop-
per average cash prices on the LME will continue to rise in
the coming years, hitting $3.34 per pound in 2010 compared
with $2.35 per pound in 2009. However, the current Octo-
ber price is now $3.67 per pound, there by illustrating one
more example of the difficulty in forecasting the metals mar-
kets. At the same conference of the LME, Citigroup Global
Markets said it expects copper prices to be in the mid $3.63
per pound range over the coming few months and exceed
$4.08 per pound next year. Clearly, the current jump to over
$3.67 per pound was a surprise to most authorities.

|9
NICKEL

NICKEL LME MONTHLY AVERAGES PRICE PER POUND

JULY 2009 THROUGH OCTOBER 11, 2010
$14.00

$12.00

$10.00

$8.00

$6.00

$4.00

$2.00

$0.00

Nickel values continued to increase, with the September
month average LME value settling at $10.27 per pound, up
nearly $0.56 per pound over the August month average.
October to date finds the nickel LME value at $10.993 per
pound. Nickel is now up to the $11 per pound levels of
April of this year as the recent rebounds of increases have
come in large portions.
Nickel stocks declined another 8,000 MT October to date
from the September month end levels bringing the LMW
warehouse stocks to 611,725 MT. Speaking at the LME’s
recent seminar in London, Joshua Crumb, senior metal
strategist at Goldman Sachs, said its forecast expects the
supply of nickel to grow by 11% in 2011, citing the restart of
Vale Inco’s operations in Canada following a lengthy strike,
which adds around 60,000 MT of new production and allevi-
ates the shortage of premium refined products in the market.
Nickel is one of the driving forces in austenitic grades of
stainless steel, such as chrome is the driving force for mart-
ensitic grades of stainless steels. Stainless surcharges are
based on elemental metallic content values of two months
prior. October delivered prices for 300 series stainless steels
are up fairly significantly due to the August metals values,
and now November prices will jump resulting from the Sep-
tember nickel values. This certainly helps stainless distribut-
ing service centers with their stock values and these distribu-
tors are where the market’s inventories are held. The nickel
increases will impact much of the alloy and specialty steel
values including some tool steels. Certainly nickel alloys will
see substantial increases. High nickel alloys surcharges are
based on nickel values four months prior in concert with
their longer than stainless steel lead times.

Mr. Crumb also said some 87,000 MT in new projects and

ramp-ups should also come online. “Particularly Canada
alone will meet, in our view, an incremental demand from
China. Next year, we see a very low risk of deficit,” Crumb
said. The bank forecasts a 5% demand growth, mainly from
China.

| 10
METALS REFERENCE SHEET
CARBON STEEL SCRAP VALUES — CHICAGO MARKET

YEAR AGO SEPTEMBER AS OF OCTOBER 11, 2010

AUTO SHRED $267/GT $366/GT $345-355/GT ($312.50/NT)
HMS (HEAVY MELT STEEL) $245/GT $347/GT $335/GT ($299.10/NT)
BUSHLING $317/GT $427/GT $410/GT ($366.08/NT)

CARBON STEEL VALUES IN MAJOR COMMODITY FORMS

CARBON FLAT ROLLED SHEET COIL BASE PRICE

AS OF OCTOBER
AUGUST 2010 SEPTEMBER 2010
2010
HOT BANDS $580-620/NT $580-590/NT $540-580/NT
COLD ROLLED $680-700/NT $680-710/NT $650-680/NT
HOT DIPPED COATED GALVANIZED* $680-720/NT $690-720/NT $670-700/NT
*0.040” x 48/60” wide coil with G90 coating=$790-$820/NT

CARBON STEEL PLATES

BASE PRICE
PLATE COILS AND STRIP MILL COILS $590-640

CARBON STEEL $720-750 depending on producer and thickness limits

DISCRETE PLATES
ALLOYS PLATES $1,185/NT and subject to grade extras up to $600/NT

HOT ROLLED MERCHANT BAR (MBQ) SHAPES (NET OF DISCOUNTS AND REBATES)

OCTOBER DELIVERY

1/4” X 4” FLATS $750-790/NT

2” X 2” X 1/4” ANGLES $730-780/NT

HR ROUND M1020/1” DIAMETER M1020/A 36 $754-814/NT

REBAR, GRADE 60: #3 TO #5 SIZES $595 and $568/NT, respectively

REBAR COILS, GRADE 60: #3 TO #5 SIZES $605 and $583/NT, respectively

| 11
METALS REFERENCE SHEET
SBQ BARS (INCLUDING SURCHARGES, NET OF REBATES)

OCTOBER DELIVERY

HOT ROLLED, C1018/1020 1”-2” DIAMETER $41.45 to $42.45/CWT ($829 to $849/NT)

HOT ROLLED 4140 (AS ROLLED) 4” DIAMETER $62.08 to $62.58/CWT ($1,241.60 to $1,251.60/NT)

HOT ROLLED 4140 Q&T 4” DIAMETER $75.58 to $76.08/CWT ($1,511.60 to $1,521.60/NT)

COLD FINISHED C1018 1” DIAMETER $57.46/CWT ($1,149.20/NT)

COLD FINISHED C1018 2” DIAMETER $56.46/CWT ($1,129.20/NT)

PIPES AND TUBULARS (NET OF REBATES)

SEPTEMBER DELIVERY

A500 GR B-SQUARE AND RECTANGULAR $780-840/NT

STRUCTURAL TUBING (HSS) 3”-12” DIAMETER
A53 GR B– 3/4” IPS TO 8” IPS $910-1,040/NT

OCTG AND LINE PIPE SAMPLING

SEPTEMBER DELIVERY

J55 ERW $1,010-1,140/NT

N/L80 (ALLOY) $1,535-1,680/NT

P110 SEAMLESS ALLOY $1,460-1,840/NT

LINE PIPE ERW $940-1,040/NT

LINE PIPE SEAMLESS $1,310-1,430/NT

| 12
METALS REFERENCE SHEET
PRIMARY MAJOR NON-FERROUS METALS

ALUMINUM

JULY 2010 AUGUST 2010 SEPTEMBER 2010 OCTOBER MTD

ALUMINUM NA $0.9019/LB $0.9608/LB $0.9807/LB $1.0628/LB
(HIGH GRADE P1020)
MWTP (MIDWEST PREMIUM) $0.065/LB $0.065/LB $0.0635/LB $0.064/LB
Resulting:
 Direct Chill Cast Sheet Values: 3003-H14, 0.040/.063 x 48 x coil = $1.5668/LB
5052 H32 = $1.5968/LB
 Continuous Cast: Building Products Grade 3105 = $1.3868/LB
Grade 3003-H14 = $1.4138/LB

ALUMINUM EXTRUSION ALLOY 6061/6063

(Billet premium is added to LME + Midwest Premium for extrusion billet)

JULY 2010 AUGUST 2010 SEPTEMBER 2010 OCTOBER MTD

BILLET PREMIUM $0.099/LB $0.1025/LB $0.1045/LB $0.1085/LB
Standard 6061 T651 solid extrusions - 2 x 2 x 1/4 x 24ft = $1.6353/LB

AS OF OCTOBER
NICKEL & COPPER JULY 2010 AUGUST 2010 SEPTEMBER 2010
11, 2010
NICKEL, LME VALUES $8.8543/LB $9.7129/LB $10.270/LB $10.993/LB
COPPER HIGH GRADE A, $2.9481/LB $3.3657/LB $3.491/LB $3.676/LB
LME VALUES

STAINLESS STEEL FLAT ROLLED SHEET COIL VALUES

Product Prices (Using current average distributor discount)

“0.044” X 48/60’ WIDE X COIL OCTOBER DELIVERY NOVEMBER DELIVERY

T304 $1.6343/LB $1.7043/LB
T316/316L $2.2546/LB $2.3378/LB
*The above changes in product prices are driven by changes in monthly elemental metallic surcharges. These are most
heavily impacted by changes in nickel values but result from the combined impact of nickel, chrome, molybdenum, titanium,
ferrous scraps and energy (natural gas). Surcharges are established from the monthly averages of the elements two months prior to the affected month.

SURCHARGES (FROM NORTH AMERICAN STAINLESS)

AUGUST 2010 SEPTEMBER 2010 OCTOBER 2010 NOVEMBER 2010

T304/304L $0.9632/LB $0.9391/LB $1.0159/LB $1.0860/LB
T316/316L $1.5794/LB $1.3769/LB $1.4766/LB $1.5601/LB

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