Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Kuni Chen – Bank of America Securities.
Kuni Chen – Bank of America Securities
First off, on the infrastructure stimulus side of the equation, it's helpful that you gave us some time frames there on when you may see some benefits from stimulus. What is you view of whether the public spending side of the equation can at least offset some of the declines we're going to see in the private and commercial construction? I just want to get your view on how those two might net out over the next couple of quarters.
Murray McClean
Here in the U.S. non residential on the public side is about 30% of our business and that could expand to 40% plus, so it could be quite significant. Obviously, non residential overall, unless the credit situation eases on the private side, is going to be down substantially in 2009 so public will take up some of the slack but not all of it.
Kuni Chen – Bank of America Securities
And how about into 2010? Do you think that 30% to 40% could go towards 50% or higher?
Murray McClean
It's obviously - we don't know what the package is, so it's difficult for us to comment but unlikely high. We hope obviously that the credit markets are eased and then the private sectors starting to work. Not back to what it was but to work more efficiently, so there'll be more activity there.
Kuni Chen – Bank of America Securities
On scrap, can you give us your views on where you see the market going over the near term? Do you think the domestic mills may be starting to rebuild some inventory or do you think the kind of recent uptick is just more export driven?
Murray McClean
The mills have still got down time and this month of December will probably be the lowest level in terms of production activity at the mills, but we see, talking about our mills now, some uptick come January, February time they'll definitely have to buy some scrap. Scrap flows are starting to improve a little bit. They almost dried up completely with the tremendous drop in prices.
So it could be in the new calendar year, January, February period a bit of an uptick in scrap but we don't think it will be significant. It depends obviously; you mentioned international markets, if there is increased activity in some of the international markets that would certainly help the situation.
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