Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 1 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Welcome to Düsseldorf 8 November 2011 Hans Jürgen Kerkhoff President German Steel Federation Chairman Steel Institute VDEh

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 2 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Stahl-Zentrum, Düsseldorf, Germany Stahl-Zentrum German Steel FederationSteel Institute VDEh VDEh-Institute for Applied Research BFI MPI for Iron and Steel Research Research Association for Steel Application Publishing House Stahleisen Advisory Organisation for Steel Construction Special Steel Association Steel Information Centre Information Centre Stainless Steel Steel Credit Security Office

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 3 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Competence for Steel under one Roof

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 4 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl World crude steel production 2009 and 2010

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 5 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl The Steel Production Sites in Germany

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 6 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Outlook 2012: German steel market still growing - from an already high starting point +27% +9% +1,5% f = forecast

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 7 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Decision by the EU Commission on benchmarks in emission rights trading from 2013 Benchmark based on 10 percent best performers in the EU Decrease of the Benchmarks due to a climate target of 30 % 1475 Emissions of the Blast Furnaces in the EU kg CO 2 / t Crude Iron EU-decision (December, ) 1328

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 8 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Threatening costs from energy and climate policy for the steel industry in Germany in million € ~ 250 Germany EU 180 Energy turnaround Increasing el. power costs caused by stopping el. Power plants Increased change climate target (additional reduction of free allocations for increased EU target on 30 %) Energy tax (less of tax adjustment) ETS (costs for CO 2 certificates) according to Benchmark decision ETS (electricity costs) Renewable Energy Fee (increased apportionment) CO 2 -Price 2010: 15 €/t CO : 30 €/t CO 2 Threatening costs

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 9 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Renewable Energy Law (EEG) – Payments for renewables and costs for steel industry: Massive increase already before the amendment. Billion € / a Million € / a Payments for Renewables in Billion € / a Burden Steel Industry in M. € / a 2010: Renewable Fee 2,047 Cent / kWh 2011: Renewable Fee 3,5 Cent / kWh 2015: Renewable Fee 4 Cent / kWh 2010: 110 M. € 2011p: 180 M. € Source: BDEW, own calculations Amendment of the Renewable Energy Law: The annual burden would be doubled up to 400 million €

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 10 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 0,0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1,0 1, Specific primary energy consumption in t coal equiv./t crude steel 0,8 1,0 1,2 1,4 1,6 1,8 2,0 2,2 2,4 2,6 2,8 3,0 Spec. CO 2 emission in t / t crude steel Energy efficiency and CO 2 -emissions of the steel industry in Germany - 10 Mill. T CO 2 Reduced CO2 emission: comparison1990/2009 Equal to 4 million middle- sized automobiles ( km/year; 170 g CO2/km)

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 11 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Consumption of reducing agents of the blast furnaces in Germany

Stahl-Zentrum Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl 12 | © Stahlinstitut VDEh | Wirtschaftsvereinigung Stahl Have a successful and interesting conference!