December 02, 2008

Update on price adjustment of HRC in Kunming Steel Company

It is reported that Kunming Steel made some guide network price adjustment on HRC for the entire province as follows:

1. ≥2.0 mm and <3.0 mm HRC prices downward of CNY 150 per tonne, 2.0 mmQ195 to 235 HRC prices to CNY 6,730 per tonne
2. ≥3.0 mm and <4.0 mm HRC prices are not adjusted, 3.0 mmQ195 to 235 HRC prices to CNY 6,480 per tonne
3. ≥4.0 mm and <5.0 mm HRC prices are not adjusted, 4 mmQ195 to 235 HRC prices in CNY 6380 per tonne
4. ≥5.0 mm and < 6mm HRC prices are not adjusted guidance, 5.0 mmQ195 to 235 HRC prices in CNY 6280 per tonne
5. ≥6.0 mm HRC prices are not adjusted guidance, 6 to 12 mmQ195-235 HRC prices CNY 6,180 per tonne.

These adjustments are tax-inclusive, does not include preferential policies, the implementation date from August 1st 2008 onwards.