Derichebourg // 2020-2021 Universal Registration Document

1

Presentation of the Group and its activities Environmental Services business

The following factors affect the ferrous scrap metal market: Global steel production

In million tons

100%

2,000

1,868 1,878

1,808

1,730

1,800

90%

1,649 1,669 1,619 1,626

1,600

80%

1,537 1,559

871

813

1,432

880

860

1,400

70%

827 846 815 818

1,237

835 828

1,200

60%

57%

53%

793

50% 49% 50% 50% 50% 51%

660

1,000

50%

47%

45% 46%

47%

800

40%

600

30%

996 1,065

928

400

20%

822 822 804 808 870

702 731

577 639

200

10%

0

0%

2009 2010 2011 2012 2013 2014 2015 2016

2017

2018 2019 2020

China as a % of total

Rest of World

China

Source: Worldsteel Association.

60%

Global steel production has grown 3% per year over the last five years. China alone accounts for 57% of global production. After a decline in 2020 (excluding China) due to the Covid crisis, production started up again in 2021 in the main countries to which the Group delivers its scrap. Distribution of steel production between blast furnaces and electric steel mills Blast furnaces consume iron ore, coke, and a small proportion of ferrous metals (10-15%), which reduces greenhouse gas emissions. Electric steel mills consume ferrous scrap metals almost exclusively. In theory, both types of mills can produce any type of steel. In practice, steel from electric mills is used to produce long steel and reinforcing bars. Coils are made mostly at blast furnaces.

50%

40%

30%

20%

10%

0%

1991

2020

2019

2018

2012

2017

2011

2016

2010

2015

1993

2009

2014

1992

2008

2013

2007

1996

1990

2006

1995

2005

1994

2004

1998

2003

1997

2002

2001

2000

1999

Share of ferrous scrap metals China Share of ferrous scrap metals Rest of World

Source: Worldsteel Association.

DERICHEBOURG 2020/2021 Universal Registration Document 15