IMPORTED RAW MATERIALS PRICES INDEX Q1 2003 - Q1 2007          

The overall imported raw materials prices index expressed in Euro soared +65.3% between Q1 2003 and Q1 2007 but skyrocketed +98.7% in currency rendering cost higher in dollar terms due to its –15% decline. In 2003 and based on a yearly average, the USD-Euro exchange rate stood at 0.88 compared with 0.75 in Q1 07. From 2002 (a yearly average exchange rate of 1.06) the dollar dived -40%. Out of all imported raw materials, the non ferrous metals price index climbed +228.3% in currency and +155.3% in Euro. Nickel trading prices jumped +477% from USD/t 8019.5 in January 2003 to USD/t 46282 in March 2007. On the same period, Copper's prices rose +293% from USD/t 1642.8 to USD/t 6455 and Aluminum grade A settlement +100% from USD/t 1377.9 to USD/t 2760. Palladium's increase +45.2% to USD/oz 370.4 from USD/oz 255.1 offset somehow non ferrous metals prices but Zinc +355% increase from USD/t 780 to USD/t 3545.1 wrote off any potential price cut trend. The foodstuff price index stayed milder by comparison gaining +11.1% in Euro and +23.8% in currency as sugar performed inversely in Euro +7.2%, but +30.7% in currency due to the growing use of ethanol in lieu of conventional refined oil products. In addition, and in Euro, the index benefitted from some price cuts among which oil seeds, tropical food products and cereals while the same items saw prices rise and on regular bases.

Industrial products, impacted by non ferrous metals, reflected higher gains, respectively +95.3% in Euro and +138.4% in currency. Overall however, indices expressed in currency and in Euro performed nearly similarly as they also reflected global markets correlations.