Volume 6 / Issue 47 / March 9, 2012 Today in raw materials Coking coal market Impasse emerging in Asia-Pacific coking coal

market 3 Scrap market Turkish mill procures deep-sea scrap cargoes from US 4 East Asian scrap importers pause to assess market 4 Exchanges Iron ore swaps trading subdued, prices drift slightly 6 Other News Tata Steel calls on UK government to act on energy 6 Ferroalloys market Japanese ferromoly prices fall, Chinese FeSi price up 11 Marketplace 12 The McGraw-Hill Companies www.twitter.com/PlattsSBBSteel Platts raw material assessments, March 9 Close/Midpoint Change % Chg

IODEX Iron ore fines 62% Fe ($/dmt) CFR North China 144.75-145.75 145.25 1.25 0.87 Please see Platts complete iron price/netbacks table, p.3 Coking coal, premium low vol ($/mt) FOB Australia 208.50 208.50 +0.00 0.00 CFR China 223.50 223.50 +0.00 0.00 Please see full metallurgical coal price/freight table, p.4 Ferrous scrap ($/mt) HMS FOB Rotterdam 404.00-408.00 406.00 0.00 0.00 A3, FOB Black Sea 414.00-416.00 415.00 -1.00 -0.24 HMS CFR Turkey 439.00-441.00 440.00 0.00 0.00 Ferrous scrap ($/lt) Shredded del Midwest US 440.00-445.00 442.50 0.00 0.00 Shredded del dock East Coast 420.00-425.00 422.50 0.00 0.00 HMS del dock East Coast 395.00-400.00 397.50 0.00 0.00 TSI raw material indices, March 9 Frequency Change % Chg Iron ore fines 62% Fe Chinese imports (CFR North China port), $/dmt 142.60 Daily 0.00 0.00 Please see TSIs complete iron ore price table, p.2 Ferrous scrap HMS 1&2 80:20, Turkish imports (CFR port), $/mt 442.00 Daily -3.00 -0.67 Shredded, US domestic (del Midwest mill)*, $/lt 443.00 Weekly (Fri) -1.00 -0.23 Shredded, Indian imports (CFR port)*, $/mt 484.00 Weekly (Fri) 1.00 0.21 * Latest index March 9

SingaporeSeaborne iron ore prices destined for Asia rebounded Friday after a two-day losing streak as stronger rebar futures and a revival in market confidence led to higher spot deals. The Platts 62% Fe IODEX assessment was up $1.25 Friday to $145.25/dry mt CFR North China. On Friday, Rio Tinto sold a 165,000 mt cargo of 61% Fe Australian Pilbara Blend fines at $143.50/dmt CFR China main port, loading March 20-29. Earlier in the day Rio was heard to be offering the cargo at $145/dmt CFR China main port, after being absent almost the entire trading week. Most market participants said the settlement suggested the market had indeed recovered ground Friday. A Singapore-based trader said $143.50/ dmt CFR was an acceptable price because PB fines are well-valued and mills like them for steelmaking. I think they might pay more Iron ore rebounds on improved steel market for it. Another trader said buying interest and inquiries were increasing for medium grades of iron ore, lending support to prices. A Singapore-based trader said the increased

Rio Tinto tender suggested buyers were getting buoyant on demand for iron ore as construction activity picked up due to warmer weather in China. Meanwhile, Australian miner BHP Billiton sold a Capesize cargo of 61% Fe Mining Area C fines at $140.50/dmt CFR Shanghai, several dollars lower than the PB fines trade. However, a number of traders said they had not received this offer, indicating it may have been restricted to mills. Vale back in the spot market Brazilian miner Vale was back in the spot market Friday after seven consecutive days of offering iron ore cargoes. The miner was heard to have Coking coal market ArcelorMittal refutes coking coal Q2 settlement report SingaporeArcelorMittal, the worlds biggest steelmaker, said Friday it had not reached an agreement to buy hard coking coal from Anglo American at $210/mt FOB for the April-to-June quarter. This suggestion of us reaching a settlement at that price of $210 is incorrect, Giles Read, a London-based spokesman

for the company, said by e-mail. Platts reported earlier this week (SBBSMD, March 7, page 1) that Anglo American reached an agreement with a European mill for its premium hard coking coal, German Creek, at that price, with widespread market chatter pointing to (continued on page 2) (continued on page 3) SBB Steel Markets Daily March 9, 2012 2 Copyright 2012 The McGraw-Hill Companies TSI Dai ly Iron Ore Price Indices TSIs indices reflect average daily iron ore spot prices. Full price histories are available to TSI subscribers on its website. Details of TSIs methodology and product specifications, together with general information about TSI and its full range of steel indices and subscription services, can also be found on its website: www.thesteelindex.com To reach Platts E-mail:support@platts.com North America Tel:800-PLATTS-8 (toll-free) +1-212-904-3070 (direct) Latin America Tel:+54-11-4804-1890 Europe & Middle East Tel:+44-20-7176-6111 Asia Pacific

Tel:+65-6530-6430 SBB Steel Markets Daily is published daily by Platts, a division of The McGraw-Hill Companies. Registered office Two Penn Plaza, 25th Floor, New York, NY 10121-2298 Officers of the Corporation: Harold McGraw III, Chairman, President and Chief Executive Officer; Kenneth Vittor, Executive Vice President and General Counsel; Jack F. Callahan Jr., Executive Vice President and Chief Financial Officer; John Weisenseel, Senior Vice President, Treasury Operations. Prices, indexes, assessments and other price information published herein are based on material collected from actual market participants. Platts makes no warranties, express or implied, as to the accuracy, adequacy or completeness of the data and other information set forth in this publication (data) or as to the merchantability or fitness for a particular use of the data. Platts assumes no liability in connection with any partys use of the data. Corporate policy prohibits editorial personnel from holding any financial interest in companies they cover and from disclosing information prior to the publication date of an issue. Copyright 2012 by Platts, The McGraw-Hill Companies, Inc. Permission is granted for those registered with the Copyright Clearance Center (CCC) to photocopy material herein for internal reference or personal use only, provided that appropriate payment is made to the CCC, 222 Rosewood Drive, Danvers, MA 01923, phone (978) 750-8400. Reproduction in any other form, or for any other purpose, is forbidden without express permission of The McGraw-Hill Companies, Inc. For article reprints contact: The YGS Group, phone +1-717-505-9701 x105 Text-only archives available on Dialog File 624, Data Star, Factiva, LexisNexis, and Westlaw. Platts is a trademark of The McGraw-Hill Companies, Inc. Managing Editor

Colin Richardson (+44 0 151 228 1081) Markets Editors London; Ciaran Roe (+44 20 7176 6346) Bursa, Turkey; Cem Turken (+90 224 234 1522) Senior Managing Editor, Markets Annalisa Jeffries (+44 207 176 6204) Americas Managing Editor Christopher Davis (+1 412 431 0398) Senior Editor Tom Balcerek (+1 412 431 0416) Markets Editor Pittsburgh; Nicholas Tolomeo (+1 412 431 0632) Managing Editor, Ferroalloys New York; Anthony Poole (+1 212 904-2992) Senior Managing Editor Singapore; Russ McCulloch

(+65 6227 7811) Managing Editor, raw materials Keith Tan (+65 6530 6557) Team Leader, raw materials Julien Hall (+65 6530 6538) Asian Markets Editors Melvin Yeo (+65 6530 6517), Celestyn Wong (+65-6530-6442), Helena Sheng, Edwin Yeo, Hongmei Li, Della Fu, Anna Low, Vivian Teo, Anitha Krishnan Managing Editor Paul Bartholomew, Australia (+61 410 400 156) Editorial Director Joe Innace (+1 212 904 3484) Manager, Advertisement Sales Kacey Comstock

Volume 6 / Issue 47 / March 9, 2012 Vice President, Editorial Dan Tanz Platts President Larry Neal ISSN: Advertising Tel: +1-720-548-5508 All rights reserved. No portion of this publication may be photocopied, reproduced, retransmitted, put into a computer system or otherwise redistributed without prior authorization from Platts. 1935-7354 SBB Steel Markets Daily General Manager, Metals Andrew Goodwin The McGraw-Hill Companies TSI daily iron ore indices, March 9 $/dmt Change % Chg Low* High* 62% Fe fines, 3.5% Al, CFR Tianjin port 142.60 0.00 0.00 116.90 183.30 58% Fe fines, 3.5% Al, CFR Tianjin port 132.90 -0.10 -0.08 102.90 163.70 62% Fe fines, 2% Al, CFR Qingdao port 144.40 0.00 0.00 119.20 186.60 63.5/63% Fe fines, 3.5% Al, CFR Qingdao port 146.10 0.10 0.07 122.70 190.00 * Past 12 months Per 1% Fe differentials, $/dmt $/dmt Change

Range: 61-64% Fe 3.00 0.00 Range: 56-59% Fe 4.00 0.00 FOB netback per route / basis TSI 62% Fe, 3.5% Al fines Origin Vessel Type FOB ($/dmt) Change % Chg W.Australia Capesize 134.79 0.08 0.06 India Supramax 128.90 -0.06 -0.05 Brazil Capesize 122.22 0.02 0.02 Rolling Averages, $/dmt 5-day Monthly Quarterly 62% Fe fines, 3.5% Al, CFR Tianjin port 142.88 142.97 140.74 58% Fe fines, 3.5% Al, CFR Tianjin port 133.12 133.01 127.71 62% Fe fines, 2% Al, CFR Qingdao port 144.68 144.77 142.52 63.5/63% Fe fines, 3.5% Al, CFR Qingdao port 146.30 146.39 144.66 sold 220,000 mt of 63.13% Fe Standard Sinter fines Guaiba at $143.75/dmt CFR China main port, market sources who received the tender said. The cargo will pass Singapore March 14 and contains 1.47% alumina, 5.22% silica, 0.055% phosphorus and 8.5% moisture. This trade was normalized and reflected in the Plat`ts assessments. Penalties were factored, because sources pointed out that the size of this cargo restricted the number of ports and buyers that could receive it. Additionally,

there was a penalty due to the cargos silica content of over 4.5%. Separately, sources said the improvement in market sentiment could also be attributed to Chinas consumer price index slipping to a 20-month low of 3.2% in February. With the worries on inflation easing, markets are getting buoyant that the Chinese government may adopt a more loose monetary policy to spur spending, such as lowering interest rates; that will lower capital costs and the injection of more liquidity into the economy will spur steel consumption and inevitably lift the price of iron ore, a Shanghai trader said. Meanwhile, among the lower-Fe grades, a Guangdong-based trader sold an 80,00090,000 mt cargo of 54% Fe Indian lump ore Thursday at $109/dmt CFR main China port. Buying mood is gaining traction, the trader said. Trading company PT Resources was still offering its Panamax cargo of 52/52% Fe fines at $102/dmt CFR North China. It first made the offer Tuesday, but said it had yet to award Iron ore rebounds on improved

steel market ... from page 1 SBB Steel Markets Daily March 9, 2012 3 Copyright 2012 The McGraw-Hill Companies Platts Dai ly Iron Ore Price Assessments Platts daily iron ore assessments, March 9 $/dmt Midpoint Change % Chg IODEX 62% Fe CFR North China 144.75-145.75 145.25 1.25 0.87 63.5/63% Fe CFR North China 148.75-149.75 149.25 +1.25 +0.84 65% Fe CFR North China 156.50-157.50 157.00 +1.25 +0.80 58% Fe* CFR North China 128.25-129.25 128.75 +1.00 +0.78 52% Fe CFR North China 99.50-100.50 100.00 +1.00 +1.01 *Al = 4.0% max Per 1% Fe differential (Range 60-63.5% Fe), $/dmt $/dmt Change Range 60-63.5% Fe 3.75 0.00 FOB netbacks per route / basis IODEX 62% Fe Route Vessel Type Freight rate ($/wmt) Moisture (%) IODEX ($/dmt) Australia Capesize 7.80 8.03 136.77 India West Panamax 13.25 8.11 130.83 India West Handymax 15.50 8.11 128.38 India East Handymax* 16.25 8.00 127.59 Brazil Capesize 20.70 9.00 122.50 South Africa Capesize 14.25 3.00 130.56 * Typical two-port co-loadings from Haldia and Paradip Freight differentials to major import ports, $/wmt

From Qingdao on a Free Out basis To North China: Caofeidian, Tianjin & Xingang 0.25 To East China: Beilun -0.25 To South China: Zhanjiang & Fangcheng -0.75 Rolling monthly average, $/dmt IODEX 62% Fe 144.57 IODEX 62% Fe CFR North China OTC swaps assessment, March 9 switch IODEX 62% $/dmt Change % Chg TSI 62 Apr 12 138.000 -0.500 -0.36 1.500 May 12 137.000 0.000 0.00 1.500 Jun 12 136.000 0.500 0.37 1.500 Q2 2012 137.000 0.000 0.00 1.500 Q3 2012 133.500 0.000 0.00 1.500 Q4 2012 131.500 1.000 0.77 1.500 Calendar 2013 127.500 0.500 0.39 1.500 Detailed methodology and specifications are found here: www.platts.com/IM.Platts.Content/ MethodologyReferences/MethodologySpecs/ironore.pdf ArcelorMittal as the buyer. Contacted by Platts SBB, Read would not say whether or not ArcelorMittal had agreed a settlement with Anglo American at another price. If a European steelmaker has agreed a deal at that price, it wasnt us, he said over the phone without elaborating further.

Both companies were unable to comment at the time of Wednesdays report. Keith Tan Impasse emerging in AsiaPacific coking coal market SingaporeThe spot market for hard coking coal destined for Asia was steady Friday, with buy- and sell-side indications not alluding to movement in any direction. Spot trade remained rather limited, especially on second-tier hard coking coals, the tender at a price it found satisfactory. The cargo had 8% alumina and 8% silica and was for prompt loading in Goa. Meanwhile, Radiant World was still offering a 75,000 mt 52/52% Fe cargo with 8% alumina and 9% silica. The most active October rebar futures in Shanghai gained traction for the second straight day Friday, increasing Yuan 38 to Yuan 4,319/mt, from Thursdays last trade. The spot price of square billet in Northern Tangshan was up Yuan 10 to Yuan 3,760/mt ex-stock, according to mill sources in Hebei. Iron ore freight rates were stable at $13-13.50/wet mt for a Panamax from

Goa to China, shipping sources reported. The slightly firmer numbers seen earlier this week were due to high bunker costs, and more demand for vessels. There has been an increase in demand for coal and this is pushing rates up, a shipping source in India said. Outlook pessimistic for Japanese steel While steel prices in China took a positive turn Friday, Japanese mills were heard to be struggling with poor margins and consequently kept production levels low. A Tokyo-based steelmaker said its output levels were being maintained at 70-80%, with no immediate plans to ramp up production. The first quarter of the Japanese fiscal year [April to June] will not see any recovery for the Japanese steel industry, the mill source said, adding, I think we can only expect some good news in July, so we will aim to go back to higher production between July and September. The source added that he was asking suppliers to lower their long-term contract tonnage and some have already agreed. Celestyn Wong and Melvin Yeo

with Annalisa Jeffries, in London Coking coal market ...from page 1 where no cargoes were heard offered. Platts premium low-vol coal was assessed at $208.50/mt FOB Australia, while HCC 64% CSR mid-vol also was unchanged at $186.50/mt. In the premium category, on top of offers heard this week for Illawara and German Creek, on Friday Xstratas Oaky Creek was said to have been offered to China at $210/ mt FOB although this could not be verified. Chinese buy-side interest for top-tier coals could be found in the $215-220/mt CFR North China range. For non-premium HCCs, an Indian trader expressed buying interest for a coal such as Vales Carborough Downs at $180-185/mt FOB Australia. All buyers surveyed sensed weakness in the market. If monetary policy in China improves, then the market could rise briefly, but otherwise the overall trend is down, a Chinese trader said.

I still think the market is going down. People have tons to move, a European SBB Steel Markets Daily March 9, 2012 4 Copyright 2012 The McGraw-Hill Companies Platts Daily Metallurgical Coal Assessments, March 9 Coking coal price assessments ($/mt) FOB CFR CFR Change Australia China India Australia China India HCC Peak Downs Region 208.00 223.00 226.00 +0.00 +0.00 +0.00 Premium Low Vol 208.50 223.50 226.50 +0.00 +0.00 +0.00 HCC 64 Mid Vol 186.50 201.50 204.50 +0.00 +0.00 +0.00 Low Vol PCI 145.00 160.00 163.00 +2.00 +2.00 +2.00 Low Vol 12 Ash PCI 127.00 142.00 145.00 -3.00 -3.00 -3.00 Semi Soft 134.00 149.00 152.00 -1.00 -1.00 -1.00 Met Coke - - 385.00 - - +11.00 HCC Assessed Specifications CSR VM Ash S P TM Fluidity HCC Peak Downs Region 74% 20.7% 10.5% 0.60% 0.030% 9.5% 400 Premium Low Vol 71% 21.5% 9.3% 0.50% 0.045% 9.7% 500 HCC 64 Mid Vol 64% 25.5% 9.0% 0.60% 0.050% 9.5% 1,700 Penalties & Premia: Differentials ($/mt) Within % of Premium Low Vol FOB Net Value Min-Max Australia assessment price ($/mt) Per 1% CSR 60-74% 0.50% 1.04 Per 1% VM (air dried) 18-28% 0.50% 1.04

Per 1% TM (as received) 8-11% 1.00% 2.09 Per 1% Ash (air dried) 7-10.5% 1.25% 2.61 Per 0.1%S (air dried) 0.3-1% 1.00% 2.09 The assessed price of HCC Peak Downs originates with Platts and is based on price information for a range of HCCs with a CSR > 67% normalized to the standard of HCC Peak Downs (CSR 74%). Peak Downs is a registered trade mark of BM Alliance Coal Operations Pty Limited BMA. This price assessment is not affiliated with or sponsored by BMA in any way. Dry bulk freight assessments Route Vessel Class Freight rate ($/mt) Moisture (%) Australia-China Panamax 15.00 9.50 Australia-India Panamax 18.00 9.50 East Australia: basis Hay Point port. North China: basis Qingdao port. East India: basis Paradip port. Detailed methodology and specifications are found here: http://platts.com/IM.Platts.Content/ MethodologyReferences/MethodologySpecs/metcoalmethod.pdf Source: Platts steelmaker commented. A Japanese mill had a similar point of view. Obviously its a buyers market. I dont have to buy spot, but if I did, I would probably bid below $200/mt FOB [for premium low-vol coal+, he said. A Mediterranean steelmaker added that with the global economy not getting any better, there was room to go down a little more.

Asked to forecast the Asian HCC outlook, a mining executive said he foresees some pressure in coming months, because traders had recently taken substantial long positions of US coals for resale in Asia, including high-quality low-vols. Met coke jumps on tight supply There appeared to be a divide in Indias met coke market with strong supply of lowerquality, lower-priced material from the Black Sea, but a tightness for higher-quality met coke with over 62% CSR, sources reported. Highlighting this split, Ukrainian 62% CSR coke was heard offered mid-week at $345/mt CFR India, while an Australian 70% CSR cargo was said to have been sold closer to $390/mt CFR in the last week, and a high-quality Asianorigin 62% CSR at $385/mt CFR. Market participants in India highlighted that because of inconsistent quality, material from the Black Sea, even when of a similar CSR, was not as valued as Japanese or Australian coke. The large differentials between higher and lower-CSR coke also were apparent in

Indias domestic market. Indian 65% CSR was heard being sold around Rupees 21,000/mt ($419) ex-works East India, while 57-60% CSR blast furnace coke was pegged at Rupees 19,000/mt, or $381 CFR India. Julien Hall Scrap market Turkish mill procures deep-sea scrap cargoes from US LondonA Turkish mill booked two cargoes from a US supplier containing HMS I/II (80/20), market participants said Friday. One of the bookings is believed to be for March shipment and both were heard at a price of $443/mt CFR Iskenderun by a longrolled steelmaker. This price was confirmed to a number of participants close to the sell side. But, an offer from a major US recycler not a regular exporter at $445/mt CFR for the same grade to be loaded in Tampa, Florida attracted demand from Turkish mills at about $435/mt CFR. The Platts daily HMS I/II (80/20 blend) import assessment therefore remained flat at $440/mt CFR Turkish ports Friday.

The reason for the unusual entrance of the US recycler offering this cargo was viewed differently by market players. Market bulls believe it shows the recyclers desire to push down global benchmark prices, such as CFR Turkey, for positional reasons, while bears argue that it indicates there is too much scrap on the ground in the US, which, unlike Europe, did not undergo the same cold snap that limited collection in February. US contracts being settled for March procurement showed no change on-month and were inked on February 13-14 last month. In that period, the Turkish HMS I/II (80/20 blend) assessment basis Platts was between $425-430/mt CFR. Since then, freight has hardened on many of scraps main Handysize routes though, and is rendering much of the Black Sea A3 supply uncompetitive at current market levels. However, with Turkish mills feeling more strain on their finished product prices now that domestic buyers have filled their stocks, export offers will have to return to international levels. A French recycler that is rarely heard

dealing with Turkish mills was also in the market this week with its own HMS cargo on offer. While shred and other higher-graded scrap is in scarce supply on the continent, HMS blends are being offered; one such cargo was heard at $428/mt CFR Turkish ports for HMS I/II (70/30 blend). Ciaran Roe East Asian scrap importers pause to assess market SingaporeThe scrap import market in East Asia was quiet with thin buying activity this week, sources told Platts. Scrap prices appear to be close to the top, a regional trader told Platts. Without much support from rebar prices, with the regional rebar markets sluggish, there was not much room for scrap prices to rise further, he added. The market may be softening a little but SBB Steel Markets Daily March 9, 2012 5 Copyright 2012 The McGraw-Hill Companies SBB-SMD raw materials reference prices $/mt Change % Chg Coke and coal

Coke 10.5-12.5% ash - China export, FOB Tianjin 480.00 10.00 2.13 Charcoal - Brazil domestic 238.19 2.87 0.01 Iron SGX 62% Fe Iron Ore cash-settled swaps (dry mt) - front month 139.00 0.67 0.48 Iron ore concentrate 66% Fe wet - China domestic 171.60 2.38 0.01 Vale blast furnace pellet 65.7% Fe, Europe, FOB Tubaro ($ cent/mtu) 295.85 -65.38 -18.10 Pig iron - FOB - Black sea export 470.00 10.00 2.17 Pig iron - FOB Ponta da Madeira - Brazil export 485.00 -5.00 -1.02 Pig iron - Hebei - China domestic 521.15 -4.77 -0.01 HBI - Venezuela export 360.00 20.00 5.88 SBB-SMD ferrous scrap reference prices Price Change % Chg Scrap, Europe/Turkey ($/mt) Auto bundles - Turkey domestic, delivered 430.64 0.00 0.00 OA (plate & structural) - UK domestic, delivered 412.69 -3.97 -0.01 Shredded - delivered - N. Europe domestic, delivered 446.98 -13.44 -0.03 Shredded - delivered - S. Europe domestic, delivered 432.86 -6.61 -0.02 Scrap, Asia ($/mt) H2 - del Olayama - Tokyo Steel purchase price, at works gate 417.29 -37.37 -0.10 H2 - del Utsunomiya - Tokyo Steel purchase price, at works gate 411.06 -18.68 -0.05 Heavy - Shanghai - China domestic 542.92 0.00 0.00 HMS 1/2 80:20 CFR - East Asia import 467.50 0.00 0.00 Shindachi Bara - del Okayama Tokyo Steel purchase (list) price 442.20 -37.37 -0.09 Shindachi Bara - del Utsunomiya -

Tokyo Steel purchase (list) price 435.98 -18.68 -0.04 Shredded scrap A (auto) - del Okayama Tokyo Steel purchase (list) price 427.26 -37.37 -0.10 Shredded scrap A (auto) - del Utsunomiya Tokyo Steel purchase (list) price 421.03 -18.68 -0.05 Scrap, Americas ($/lt) #1 Busheling - N. America domestic, del, Midwest US 472.50 0.00 0.00 HMS 1/2 - N. America domestic, del Midwest US 397.50 0.00 0.00 Plate & Structural - N. America domestic, del Midwest US 427.50 0.00 0.00 ($/mt) HMS 1/2 - Brazil S.E. domestic 261.87 14.55 0.05 there is still demand among the mills, another trader noted. Limited offers for bulk HMS I/II (80/20) were at $470-480/mt CFR East Asia. In Taiwan, fresh offers for containerized 80/20 fell to $450/mt CFR, from $455/mt earlier last week. However, Taiwanese importers were largely absent during the week. Taiwans scrap import market was flat after three weeks of rising prices since mid-February. Many mills are adopting a wait-andsee approach, a local trader said. Taiwanese mills were trying to book local scrap at lower purchase prices. The mills also want to adjust inventories and average

costs for imported scrap cargoes booked in the last round, he added. Traders reported that a few deals involving small tonnages were booked at $445-450/mt CFR Taiwan, down from $450-455/mt CFR the week before. Offers of containerized 80/20 to Southeast Asia were prevailing at $450-455/mt CFR. Anna Low Japanese scrap export prices rise in Kanto auction Singapore Prices of Japanese scrap exported through Tokyo Bay seem set to rise following Fridays auction for H2 grade material, sources told Platts. The regular monthly auction held by the Kanto Tetsugen grouping of scrap dealers serving the Chiba-Yokohama-Tokyo areas selected four winning bids for shipments during April. The winning bids were awarded 5,000 mt each at Yen 32,700/mt ($399/mt) FAS, Yen 32,500/mt FAS and Yen 32,410/mt FAS while the last, which secured 10,000 mt, was at Yen 32,400/mt. The winning tender was Yen 1,800/mt ($22/mt) higher than that last

month for material for export during March. Industry sources said the first bid was submitted by Sangyo Shinko, the second and fourth by JFE Shoji Trade, and the third by Marubeni Tetsugen. It is understandable that bids were higher this month than last as prices have risen, a Tokyo-based trader said. But prevailing export prices of Japanese H2 for Korea are around Yen 33,000/mt FOB or equivalent to Yen 31,500-32,000/mt FAS. As the winning (Kanto Tetsugen) bids were higher than current export prices, export prices may climb again, the trader told Platts. Another Tokyo-based scrap trader said domestic prices have been weakening but deliveries to mini mills were still smooth despite the recent cuts. Last Thursday Tokyo Steel Manufacturing cut its scrap purchase prices by Yen 500/mt, the leading mini mills first cut since end-January. Its buying price for H2 material at its Okayama works in western Japan became Yen 34,500/mt ($421/mt) for seaborne delivery and Yen

34,000/mt for truck delivery, as reported. Japanese scrap exports to Korea were currently quiet but as soon as the Korean mills start booking for April delivery, scrap collectors will begin accumulating scrap around the Tokyo Bay area in preparation for export. The Japanese mini mills will then have to lift prices again to ensure they get deliveries, a trader added. Yoko Manabe Chinas scrap prices hold stable, steel market shaky SingaporeDomestic scrap prices were generally stable in the majority of Chinas regions this week as the finished steel market remained unsettled. However, the buying prices of major mills have fluctuated, sources told Platts SBB. In eastern Chinas Jiangsu province, Wuxi Xuefeng Iron & Steel a subsidiary of the Shagang Group raised its scrap prices by Yuan 50/mt ($8) on Tuesday. This took its buying price for heavy melting scrap to Yuan 3,270/mt including 17% VAT. In central Chinas Hubei province, leading

steelmaker Wuhan Iron & Steel lifted its buying price for HMS to Yuan 3,360/mt on Thursday from its previous Yuan 3,350/mt. This was done to catch up with the buying prices of neighboring mills to ensure its supply, a local source told Platts. Meanwhile, in southern Chinas Fujian province, Sangang Steel the regions largest steelmaker lifted its scrap prices Yuan 50/ mt to Yuan 3,300/mt with VAT effective Friday. SBB Steel Markets Daily March 9, 2012 6 Copyright 2012 The McGraw-Hill Companies However, another major mill in the region, Sanbao Iron & Steel, reduced its prices by Yuan 30/mt on the same day, taking its buying price to Yuan 3,360/mt including VAT. Mills that had been paying relatively low prices are hiking their prices to improve deliveries, while those that had been paying higher prices are shaving them to avoid possible risks, given the uncertain steel market, a Shanghai-based market observer said. She added that market prices have not seen obvious change, despite these small fluctuations.

Market prices for HMS were prevailing at Yuan 3,250-3,350/mt in the countrys east regions, Yuan 3,250-3,430/mt in the central and Yuan 3,250-3,360/mt in the south. All prices include 17% VAT. Della Fu US shredded scrap prices maintain month-long stability PittsburghAfter volatile price swings from October through mid-February, shredded scrap pricing in the US has remained relatively flat for the past four weeks. The latest price from The Steel Index of $443/lt delivered Midwest mill for the week ending March 9 is down just one dollar from the prior two weeks. After averaging $463/lt in January, the index has remained in the range of $443444/lt for the prior four weeks, moving up or down in only $1 increments. As previously reported, early March bookings by US mills of obsolete and shredded grades had been settled at February levels. Market direction is still unclear as we move further into March, TSI noted. TSI, is a separate price-specialist unit owned by Platts.

Mills were trying to hold off *the anticipated+ increase, one Midwest scrap dealer said. The TSI index price fell close Friday to the Platts shredded scrap assessment midpoint price of $442.50/lt delivered to Midwest mills. Scrap yards seem pretty full, a US east coast (USEC) scrap yard source said. The market is quiet, very quiet. There is not a lot of business taking place. The Platts assessment for shredded scrap delivered to USEC docks held at a midpoint of $422.50/lt, while the HMS price delivered to USEC docks was at a midpoint of $397.50/lt down $5 compared to the prior week. Nicholas Tolomeo Exchanges Iron ore swaps trading subdued, prices drift slightly LondonIron ore swaps slipped marginally over the course of the Asian trading day on weaker tender results, despite a firmer start on the back of rebar futures moving up, brokers told Platts on Friday. Q2 traded down to $135.50/mt while April was done at $136/mt, slightly below

the SGX daily settlement level for Thursday. Q4 traded at $130/mt and the Q2/Q3 spread remained unchanged at $3.50/mt. Swaps trade was relatively quiet with people looking to the physical market for direction, brokers said. It feels like a few people were interpreting tender results as negative, one said, adding that everyone seemed ambivalent to the rangebound market. The SGX daily settlement price for April slipped 33 cents to $136.17/mt, with May down 58 cents to $134.92/mt. Its settlement price for June was down $1.50/mt at $133.33/mt, while July was off $1.16/mt at $132.67/mt. The Steel Indexs reference price for 62% Fe material, CFR North China, was unchanged at $142.60/dry mt. TSI, a separate specialist price unit owned by Platts, cited some trades done at higher levels and others at lower marks. One options broker said he did a 150,000 mt Q3 zero-cost collar at $118-$149.50/mt where one counterparty buys the $118/mt put option and sells the $149.50/mt call, a common

hedging strategy. Coking coal and scraps swaps markets were quiet. Chinese market in for long winter Despite some policies from Beijing, such as increasing liquidity, offering temporary respite, the Chinese steel industry is still in for a long winter amid a gloomy macroeconomic environment, Fan Jianping, head of economic protection of Chinas State Information Center said at the Global Coking Coal Resource & Market Summit 2012 Thursday. Q1 is not the bottom, he said. Unlike what has happened in China in the past, mills will not be able to get out of trouble when they succeed in destocking, as Beijing will continuously clamp down on real estate. Colin Richardson Other News Tata Steel calls on UK government to act on energy LondonTata Steel Europe believes high electricity costs in the UK are eating

into its competitiveness, the company told Platts Friday. It has calculated that its facilities in the UK are paying 50% more for electricity than its site in France, and 25-30% more than its site in Germany. On Thursday, Karl-Ulrich Kohler, head of Tata Steel Europe, said the disadvantage for producing steel in the UK could be calculated at GBP5/mt ($7.84/mt) of steel, according to local press reports. The company wants the UK government to apply a mitigation package for heavy energy users (worth GBP250 million) announced in November 2011 and discuss further measures to mitigate the disadvantage compared with other continental markets. In March 2011, the UK government announced measures on carbon credits, affecting energy prices. This April the impact on prices is expected to increase further as subsidies for renewable energy will be introduced. Comments from other crude steel producers in the country, such as the Spanish

electric arc furnace producer, Celsa, were not immediately available. According to Platts data, continental European wholesale power prices for delivery next year are around 20% below the comparable UK wholesale power prices (Platts ContiCal 13 at Eur53.12/MWh ($69.64/MWh) vs. UK Year-Ahead at Eur64.50/MWh, as of March 8). French heavy-energy users benefit from generous tariffs. In the spring of 2010, the local Exeltium industrial consortium comprising electricity intensive industrial power users, including ArcelorMittal, entered into a 15-year supply contract with state-controlled EDF. The consortium said the deal would provide its members with long-term visibility. German steel manufacturers, on the other hand, have to pay part of the renewable energy subsidies, according to a market analyst. Last July, the German longs steelmaker Saarstahl announced its intention to acquire a 310 MW coal-fired power plant from RWE as rising energy costs in Germany represent a real competitive disadvantage.

 Andreas Franke and Emanuele Norsa Shuttered Pike River Coals mine sold to Solid Energy PerthPike River Coal, the owner of a New Zealand coking coal mine that closed after an underground explosion that killed 29 miners in Nov 2010, has been sold to the countrys state-owned coal producer Solid Energy for an undisclosed sum, said PricewaterhouseCoopers, receivers for Pike River Coal, in a statement Friday. John Fisk, a receiver appointed to oversee the sale of Pike River Coal, said he was unable to disclose the price paid by Solid Energy, or the identities and number of potential buyers who had expressed an interest in acquiring the company. We, as the receivers, are pleased with this agreement as we consider it the best way forward for all parties. No further details of the transaction or any related matter can be released until the agreement is unconditional, Fisk said in a SBB Steel Markets Daily March 9, 2012 7 Copyright 2012 The McGraw-Hill Companies

Platts steel industry assessments, March 9 Close/Midpoint Change % Chg Asia Hot-rolled coil $/mt FOB Shanghai* 630.00-640.00 635.00 5.00 0.79 Reinforcing bar $/mt FOB China* 630.00-640.00 635.00 20.00 3.25 * Assessed March 08, 2012 Europe Hot-rolled coil Eur/mt Ex-works, Ruhr 565.00-570.00 567.50 0.00 0.00 CIF Antwerp 540.00-550.00 545.00 0.00 0.00 $/mt FOB Black Sea 625.00-635.00 630.00 0.00 0.00 Plate Eur/mt Ex-works, Ruhr 615.00-625.00 620.00 0.00 0.00 CIF Antwerp 545.00-555.00 550.00 0.00 0.00 Reinforcing bar Eur/mt Ex-works, NW Eur 550.00-560.00 555.00 0.00 0.00 $/mt FOB basis Turkey 670.00-680.00 675.00 -5.00 -0.74 Billet $/mt FOB Black Sea 600.00 600.00 -5.00 -0.83 North America Hot-rolled coil $/st

Ex-works, Indiana 690.00-700.00 695.00 0.00 0.00 CIF, Houston 650.00-670.00 660.00 0.00 0.00 Plate $/st Ex-works, US SE 940.00-960.00 950.00 0.00 0.00 CIF, Houston 850.00-870.00 860.00 0.00 0.00 Reinforcing bar $/st Ex-works, US SE 730.00-750.00 740.00 0.00 0.00 CIF, Houston 650.00-660.00 655.00 0.00 0.00 Europe and US cold-rolled coil assessments, March 9 Eur/mt Close/Midpoint Change % Chg Ex-works, Ruhr 635.00-640.00 637.50 0.00 0.00 CIF Antwerp 595.00-600.00 597.50 0.00 0.00 $/mt FOB Black Sea 735.00-745.00 740.00 0.00 0.00 $/st Ex-works, Indiana 790.00-800.00 795.00 0.00 0.00 CIF, Houston 760.00-770.00 765.00 0.00 0.00 statement posted on PwCs New Zealand website on Friday. Over the telephone, Fisk said the sale of Pike River Coal to Solid Energy was subject to the satisfactory conclusion of due diligence checks by the end of March, and that financial settlement for the deal would likely follow in May.

He said Solid Energy was interested in restarting coking coal mining at Pike River Coals mine, which had only been in production for a short time when the underground explosion occurred, leading to the mines immediate closure. Pike Rivers receivers PwC would continue with their operation to reclaim the mines main tunnel, and in the next few weeks it was expected the top end of the mines underground drift would be sealed and the tunnel re-ventilated, Fisk told Platts. As part of the agreement, negotiations will continue with the Crown to establish a trust that will help oversee efforts to enter the main area of the mine and facilitate body recovery if it is safe and technically feasible, he said in the PwC statement. Several overseas companies were speculated by market sources to have expressed an interest in acquiring Pike River Coal, including possibly one of its two Indian shareholders Gujarat NRE Coking Coal with a 7% stake, and some Chinese companies.

A Solid Energy spokesman confirmed Friday the sale of Pike River Coal to the stateowned company, which owns several mines in New Zealand, adding that the deal was subject to certain undisclosed conditions. The spokesman declined to go into detail about the specifics of the deal including price, and said the company would be making a fuller statement after it had completed its due diligence of Pike River later this month. Pike River Coals underground mine is located on New Zealands South Island and has a coal resource of premium, high fluidity hard coking coal of 58.5 million mt, according to the companys website. New Zealand Oil & Gas, another stateowned company, was Pike Rivers largest shareholder with a stake of 29.4% and was also its biggest creditor being owed NZ$40 million ($33 million), most of which it has recouped in insurance payments. Mike Cooper Indian iron ore export volumes declined in February

Singapore India exported some 4.079 million mt of iron ore through major central government-controlled ports in February, a 5.8% drop from 4.329 million mt exported the previous month, according to provisional data from the Indian Ports Association. Although the market has been sluggish for Indian exporters for several months now, transaction levels in January declined further owing to the Chinese Lunar New Year holidays that month, Indian market participants said. Ore export volumes from ports on the east coast remained largely stable last month. The Paradip port of Odisha (formerly Orissa) state shipped 133,000 mt of ore last month, slightly up from 125,000 mt in January but down 91% year on year. Similarly, shipments from the Vishakhapatnam port in Andhra Pradesh state totaled 973,000 mt in February, up from 921,000 mt the previous month but down 52% y-o-y from some 2.03 million mt exported in February 2011. On the west coast, the Mormugao port

in Goa state saw export volumes slipping to 2.433 million mt last month from 2.679 million mt in January. February shipment volumes were also down some 47% y-o-y. So far this fiscal year Indian iron ore exports from major ports have dropped 28.6% y-o-y to 56.226 million mt from 78.754 million mt exported during April 2011-February 2012. We look set to complete the fiscal year with some 60-62 million mt of ore SBB Steel Markets Daily March 9, 2012 8 Copyright 2012 The McGraw-Hill Companies exports (from major ports), a New Delhibased analyst told Platts. The major ports covered by the data are conduits for 80-90% of Indias total iron ore export shipments. Anitha Krishnan Rogesa sees seaborne coking coal demand growing LondonGlobal seaborne coking coal demand will rise by more than a third to over 363.5 million mt by 2015, compared to 2011, Hans-Joachim Welsch, CEO of German

pig iron producer, Rogesa, told Platts. Welsch was talking at the Handelsblatt Stahlmarkt conference in Dsseldorf. Worldwide seaborne coking coal demand in 2010 was 278 million mt, slipping to 265 million mt last year, he said, based on figures from banking group Credit Suisse. The largest growth in demand over the next five years will come from China, followed some way behind by India, and Central and South America, he noted (see table). Turkish demand will level off over the next year or so, rising from 5 million mt/y last year to 6.5 million mt/y in 2015, while annual EU-27 demand will also increase by over 2.5 million mt. This shows that while there are no particular problems [for EU producers] to secure coking coal at present, the problems of the past might return in the future, Welsch told Platts. The biggest issue will be the shortage of particular qualities, he added. Victoria Glasson BofA still bearish on Chinas

lagging steel output vs 2011 New YorkChinas daily production of crude steel declined to an annualized rate of 612.7 million mt in late February, according to an industry overview published Friday from Bank of America/Merrill Lynchs Hong Kong research team, which also forecast short-term price risk for iron ore and coking coal. The report cited CISA estimates that daily crude steel production declined to 1.68 million mt in late February, down by 1.22% from the previous 10-day period. February average daily production was 1.7 million mt, 9.3% below average production in 2011 of 1.87 million mt/day, BofA-ML noted. The annualized rate of nearly 613 million mt is about 70 million mt less than 2011s total crude steel output from China of 683.3 million mt, based on World Steel Association data. We remain bearish on the steel sector for the following reasons 1) weak steel demand 2) high raw material cost, wrote Yongtao Shi, research analyst in Hong

Kong, who added: We also see downside risk for iron ore and coking coal price in Q2, due to a slower than expected steel production recovery. Nonetheless, BofA-ML forecast a V-shape recovery is likely to occur in the second half of 2012. Even assuming flat steel production growth in 2012, we will expect 582 million mt crude steel production in the next 10 months, equivalent to daily production of 1.94 million mt, on average15% higher than current level, said Shi. The ground check has indicated a weak steel demand outlook near-term, caused by slowing property investment and infrastructure activities. Hence, we would expect a V-shape rebound in 2H12, driven by increasing infrastructure investment and social housing kick-off, the analyst added. Joe Innace Perth firm expects iron ore sales from Indian project Melbourne Perth-based commodity developer, NSL Consolidated, expects to

make the first sales of iron ore from its Kurnool beneficiation plant in India before the end of June, the company said in a statement on Friday All the main structures for the first phase of the project have been erected and commissioning on individual equipment components was underway Friday. NSL expects to produce 200,000 mt/ year of hematite ore in the first phase of the project and remains on track to generate sales revenue from its Kurnool operations in the first half of 2012. The second phase of the project will see a 200,000 mt/y wet beneficiation plant beginning operations later this year. An official from NSL told Platts the focus for phase one output would be to sell into the Indian domestic market. Subsequently, NSL will consider exporting material to China. We have the agreements and infrastructure in place to export, so obviously China is a potential market, the official said. The Kurnool project is located in southeast

Indias Andhra Pradesh state and includes the Mangal mine. NSL also has another mine, the Kuja iron ore mine, which lies adjacent to Kurnool. It is also the only foreign company to own and operate iron ore mines in India. Rio Tinto could follow suit after it realises plans to invest US$2 billion in Indias iron ore industry as the miner announced last week. Marnie Hobson Hegangs receives approval for Tianxing iron ore mine Singapore Hebei Iron & Steel Group (Hegang), Chinas top steel producer in north Chinas Hebei province, has secured approval for a 15 million mt/year iron ore mining project in Tianxing, Hebei, which it says will be the countrys largest underground mine. In a posting on its website Thursday, Hegang said the National Development and Reform Commission granted formal Global seaborne coking coal demand 2010-2015 (million mt) 2010 2011 F 2012 F 2012 F 2014 F 2015 F % change % change

2010-2015 2011-2015 EU-27 40.5 39.3 39 40 41 42 4% 7% Asia* 100 95 100 103 106 110 10% 16% India 34 34 36 38 42 50 47% 47% China 49.1 43.3 58.5 70.2 82 92.8 89% 114% North America 7.5 7.5 7.5 7.5 7.5 7.5 0% 0% Central/South America 14.9 16 19.8 20.8 22.3 23 54% 44% Turkey 4.6 5 6 6.5 6.5 6.5 41% 30% Rest of World 27.3 25.7 28.2 30.7 31.2 31.7 16% 23% TOTAL 277.9 265.8 295 316.7 338.5 363.5 31% 37% *excluding India and China Source: Credit Suisse SBB Steel Markets Daily March 9, 2012 9 Copyright 2012 The McGraw-Hill Companies approval late last month for mine development to proceed. Although the steelmaker plans to invest Yuan 4.2 billion ($666 million) in the project, the present status is unknown as Hegang officials could not be reached for comment. Construction on mine projects in China sometimes start before formal approval is given. Hegang hopes to commission the Tianxing mine by 2015 as the project

has a major role in the steelmakers target of lifting its iron ore concentrate capacity to 35 million mt/year within three years. Located at the southern part of Hegangs core Sijiaying iron ore tenement in Luxian County of Tangshan city, the mine is said to boast 843 million mt of iron ore resources at an average 30.8% Fe. Just 60km from Hegangs Tangshan steelworks, the Tianxing mine may dip to 850 metres underground and is being designed to have a concentrate capacity at 66% Fe of 5.1 million mt/y. Sijiaying, with 2.3 billion mt of resources, is Hegangs core iron ore mining development region and hosts large mines such as Yanshan and Dajiazhuang. Hegang expects to develop Sijiaying into Asias top iron ore mining area supporting 42 million mt/y of mining or 14.2 million mt/y of concentrate capacity, according to its website. Hongmei Li Australia approves second

foreign takeover in a week Melbourne Australias Foreign Investment Review Board (FIRB) has approved the acquisition of Gloucester Coal by Chinas Yanzhou Coal subsidiary Yancoal Australia, making it the second takeover of an Australian resources company by foreign owners in a week. The other takeover approved by the FIRB last week was Russias Magnitogorsk Iron & Steel Works (MMK) acquisition of iron ore miner Flinders Mines. The approval of the Gloucester deal comes after the original offer was revised, to allow Gloucester a smaller stake in Yancoal of 22% down from 23% with Yanzhou retaining 78% in the merged companies. The combined company will operate seven mines producing around 12.8 million mt/year of coking, PCI and thermal coal. Production is planned to increase to 25 million-30 million mt/year by 2016, as previously reported. Gloucester said in a stock exchange statement on Friday that meetings with

shareholders to vote on the merger are scheduled to be held next month. Marnie Hobson Indonesian miners to gain from new ownership law JakartaIndonesias new mining regulation, which paves the way for domestic mining companies to retain a 51% stake while foreign ownership will be limited to 49%, will boost the growth of local miners and government revenue but may pose an obstacle for foreign investment, industry sources told Platts. The government aims for domestic mining companies to grow and be able to be as good as foreign companies, therefore we are increasing the divestment obligation [of foreign companies+ to 51%, deputy minister of energy and mines minister Widjojono Partowidagdo told Platts Friday. What the government does is always to help the publics welfare, he added. Indonesian President Susilo Bambang Yudhoyono signed the decree on February 21, but the announcement was made on

Wednesday. The ruling states that a foreigncontrolled mining company has an obligation to divest 51% of its share in a company to Indonesian parties including the central government, regional government, state enterprise or other domestic investors by the time it completes 10 years of production. The divestment should reach 20% in the sixth year of production, 30% in seventh year, 37% in the eighth year, 44% in the ninth year and 51% in the tenth year, according to the regulation. This ruling applies to companies mining for coal, minerals and metals. In the previous 2010 regulation, the government said foreign-controlled mining companies were required to divest at least 20% of shares after five years of operation. Government to renegotiate contracts The director of mineral business development at the energy and mines ministry Dede Ida Suhendra said Friday the new 51% divestment regulation would be discussed with various foreign mining companies

under a renegotiation of contracts. The negotiations are still going on, Suhendra said. There are seven points that the government will renegotiate, including the divestment clause and royalty, he added: the government earlier said it wants to increase the royalty received from the mining contracts. Mixed reaction from China nickel players Those with existing mining interests in Indonesia said it will discourage fresh investments while analysts reckoned it is not a huge deterrent for Chinese nickel investors. With the ban on ore exports and restriction on majority ownership of mines by foreigners, foreign companies will be reluctant to invest in mining in the country, a senior official with Shanghai Tsingshan Mineral Co told Platts SBB. The company is still confirming details of the new rule, he said. Tsingshans parent company, Shanghai Dingxin Investment Group, has a 55:45 joint venture covering nickel mining, ferro-nickel and stainless production with Indonesias

Bintangdelapan Group. Another senior official with a Chinese state-owned miner holding nickel mining investments in Indonesia said the latest regulation is a huge departure from existing rules that allow mining projects to be wholly foreign-owned. We will now need to proceed with more caution with any new investments in Indonesia, he said. A Beijing-based nickel analyst, however, believed Chinese investors will continue to invest in nickel resources there. China needs the nickel resources. Chinese companies do not necessarily have to take a majority share in projects, he said. Analysts also argus that Chinese investors mulling mining investments in Indonesia are more likely to consider other existing hurdles to investing there, such as confusing regulations and conflicting rules followed by central and local governments. Building a plant there is not easy as it is, a Shanghai-based nickel analyst said. Anita Nugraha and Vivian Teo Tata Steel could sell some

Canadian Fe ore to market LondonIndias Tata Steel could become a player in the merchant iron ore market if proposed expansions at its New Millennium joint venture in Canada begin production, according to a local media report. To make a project viable of that nature, we may have to produce 10-15 million *mt+ of iron ore but we cant use all of that. So, we may then look at selling some on merchant basis to others, Tata Steels managing director H.M Nerurkar told the Business Standard Thursday. An initial feasibility study on a project to produce 22 million mt/year of taconite ore products from either its LabMag or KeMag deposits near the Quebec-Labrador border is due within the next few months, a source within New Millennium said earlier. Once the initial feasibility study is completed, Tata will have four months to decide whether to invest an estimated $4.85 billion in the project. Production could begin by 2016, New Millennium sources have said.

Other vertically integrated steel and mining groups, such as ArcelorMittal, have indicated a willingness to sell surplus iron ore to other steelmakers in North America. Nerurkar also told the newspaper that Tata Steel could work closely with other SBB Steel Markets Daily March 9, 2012 10 Copyright 2012 The McGraw-Hill Companies Platts steel assessments currency and unit comparisons, March 9 Prior assessment Eur/mt $/mt $/st $/CWT $/mt $ change % change Hot-rolled coil Ex-works, Ruhr* 567.50*** 743.65 674.64 33.74 752.62 -8.97 -1.19% FOB Black Sea* 480.77 630.00*** 571.54 28.58 630.00 0.00 0.00% CIF Antwerp* 545.00*** 714.17 647.89 32.40 722.78 -8.61 -1.19% Ex-works, Indiana** 584.15 766.09 695.00*** 34.75 766.09 0.00 0.00% CIF, US Gulf states, basis Houston** 554.73 727.51 660.00*** 33.00 727.51 0.00 0.00% Cold-rolled coil Ex-works, Ruhr* 637.50*** 835.38 757.86 37.90 845.45 -10.07 -1.19% FOB Black Sea* 564.71 740.00*** 671.33 33.58 740.00 0.00 0.00% CIF Antwerp* 597.50*** 782.96 710.30 35.52 792.40 -9.44 -1.19% Ex-works, Indiana** 668.20 876.32 795.00*** 39.75 876.32 0.00 0.00% CIF, US Gulf states, basis Houston** 642.98 843.25 765.00*** 38.25 843.25 0.00 0.00% Plate Ex-works, Ruhr* 620.00*** 812.45 737.05 36.86 822.24 -9.79 -1.19%

CIF Antwerp* 550.00*** 720.72 653.84 32.70 729.41 -8.69 -1.19% Ex-works, US Southeast** 798.47 1047.18 950.00*** 47.50 1047.18 0.00 0.00% CIF, US Gulf states, basis Houston** 722.83 947.97 860.00*** 43.00 947.97 0.00 0.00% Reinforcing bar Ex-works, Northwest Europe* 555.00*** 727.27 659.78 33.00 736.04 -8.77 -1.19% East Mediterranean, basis Turkey* 515.11 675.00*** 612.36 30.63 680.00 -5.00 -0.74% Ex-works, US Southeast** 621.97 815.70 740.00*** 37.00 815.70 0.00 0.00% CIF, US Gulf states, basis Houston** 550.53 722.00 655.00*** 32.75 722.00 0.00 0.00% *LN 16:30 Eur/$ ex rate = 1.3104; **NY 16:30 $/Eur ex rate = 0.7625. ***the primary assessments and have not been converted Tata group firms, such as Tata Power, to source coal. Coal deposits frequently contain different qualities of coal suitable for steelmaking and power generation. Nick Edstrom Downpours dampen Brazils early 2012 iron ore output Sao PauloBrazils January deluges that saw mining giant Vale declare force majeure resulted in a 15% reduction in iron ore production versus the year-ago period, according to the Brazilian institute of geography and statistics (IBGE). As previously reported by Platts Steel Business Briefing, Vale blamed heavy rains in three states for hampering operations,

resulting in a 2 million mt decline in production. According to IBGEs industry coordination manager. Andr Macedo, production had increased throughout 2011, with output up 5.1% year on year in H1 and 3.6% and 2.6% in Q3 and Q4, respectively. Data from the Brazilian Mining Association (Ibram) shows January iron ore exports fell 20% year-on-year to 22.7 million mt from 18.2 million mt. National iron ore output reached 420 million mt in 2011, of which 330 million mt was sent abroad. There was a slowdown in the growth dynamic as 2011 progressed because of Villacero takes full control of Coutinho & Ferrostaal Villacero has taken full control of Germany-based trading jv Coutinho & Ferrostaal as the Mexican firm looks to strengthen and consolidate its overseas operations, Platts Steel Business Briefing learned from a well-positioned executive involved in the merger. See more steel news at www.sbb.com Prices rise only slowly as economic doubts continue Chinas daily output continued to slide in late-February Alfa Acciai invests in its scrap yard Algeria pays slightly more for S. European rebar Anglo American says Minas-Rio output may reach 80 mil mt/y

Brazil opens AD case on stainless pipe from China, Taiwan DOC rescinds AD review on Taiwanese HRC China to discuss tower dumping allegations with US US flats service center expands into Indiana US sheet import prices up in Gulf, buying sluggish Chinese lift plate export prices to Korea for May shipment East Asian importers baulk at higher Chinese HRC prices Flats trade in Turkey picks up on end-user restocking US Steel Kosice in talks on future workforce Egyptian flats trade remains sluggish, outlook uncertain Posco to start building plant in Vietnam from July China billet prices flat, market outlook positive Rebar prices firming up in northern China UK structural steel demand fell in 2011, no recovery in 2012 CIS billets tentative recovery on pause as buying halts Sidor ramps up longs production after latest stoppage Syrian traders offer ready-load Black Sea rebar to Lebanon Precision Castparts to buy US tubemaker RathGibson New power projects lift Chinese welded pipe demand Chinas OCTG demand forecast to keep rising Pipemaker in Turkey delivers spirally welded pipe Steel headlines SBB Steel Markets Daily March 9, 2012 11 Copyright 2012 The McGraw-Hill Companies Weekly Ferroalloy Prices

Ferrochrome cts/lb change/date assessed US Charge 50-55%/Impt. 117.000 / 118.000 +2.000 / 03-07-12 US 60-65%/Impt. 117.000 / 118.000 +2.000 / 03-07-12 US Low-Carbon 0.05% Imported 233.000 / 235.000 +1.000 / 03-07-12 US Low-Carbon 0.10% Imported 210.000 / 213.000 03-07-12 / 03-07-12 US Low C 0.15% Imported 202.000 / 207.000 03-07-12 / 03-07-12 Charge Chrome 52% DDP NWE 103.000 / 110.000 +3.000 / 03-08-12 65% 6-8% High-Carbon DDP NWE 115.000 / 120.000 03-08-12 / 03-08-12 Low Carbon 0.10% DDP NWE 212.000 / 216.000 03-08-12 / 03-08-12 High Carbon 60% FOB China 100.000 / 104.000 03-08-12 / 03-08-12 50-55% Regular CIF Japan 123.000 03-08-12 60-65% Spot CIF Japan 105.000 / 106.000 03-08-12 / 03-08-12 Ferromanganese $/gt change/date assessed MW 78% Mn/Impt. 1300.000 / 1350.000 +50.000 / +50.000 cts/lb change/date assessed Medium Carbon 93.000 / 95.000 -1.000 / 03-07-12 $/mt change/date assessed High Carbon 75% FOB China 1200.000 / 1210.000 03-08-12 / 03-08-12 Ferromolybdenum $/lb change/date assessed MW US FeMo 16.500 / 17.000 -0.200 / -0.200 $/kg change/date assessed MW Europe FeMo 34.800 / 35.300 -0.700 / -0.500

FOB CHINA FEMO 34.800 / 35.000 -1.000 / -1.200 Spot CIF Japan 34.800 / 35.000 -1.000 / -1.200 Ferrosilicon cts/lb change/date assessed MW 75% Si Imported 96.000 / 97.000 03-07-12 / 03-07-12 $/mt change/date assessed Chinese CIF Japan 1400.000 / 1410.000 -20.000 / -20.000 $/mt change/date assessed 75% FOB China 1390.000 / 1400.000 +10.000 / 03-08-12 Eur/mt change/date assessed 75% Std DDP NWE 1180.000 / 1220.000 03-08-12 / 03-08-12 Ferrovanadium $/lb change/date assessed Free Market V205 5.800 / 6.200 03-08-12 / 03-08-12 US Ferrovanadium 14.250 / 14.750 +0.250 / +0.250 $/kg change/date assessed Europe Ferrovanadium 26.000 / 26.300 03-08-12 / 03-08-12 Manganese $/mt change/date assessed 99.7% FOB China 3100.000 / 3150.000 03-08-12 / 03-08-12 Molybdenum $/lb change/date assessed MW Dealer Oxide 14.250 / 14.550 -0.350 / -0.250 Oxide Trans 14.250 / 14.550 -0.350 / -0.250 Silicomanganese

cts/lb change/date assessed MW 2% Free Market 74.000 / 77.000 +2.000 / +2.000 $/mt change/date assessed 65% FOB China 1480.000 / 1500.000 03-08-12 / 03-08-12 Chinese CIF Japan 1400.000 / 1500.000 03-08-12 / 03-08-12 Eur/mt change/date assessed 65:16 DDP NWE 970.000 / 1000.000 +50.000 / +30.000 Same-date references indicate there was no price change. [falling] international demand. But at the start of 2012, there was a complete inversion of the trend, Macedo said, citing heavy rains in Minas Gerais as the main culprit. It was a production problem, not a demand one. Jose Guerra Ferroalloys market Japanese ferromoly prices fall, Chinese FeSi price up TokyoSpot prices of ferromoly imported into Japan softened to $34.80-35/kg CIF Japan from $35.80-36.20/kg a week ago, tracking overseas moly oxide prices lower. One trader was selling to his customers at slightly lower than $35/kg and the price had come down due to the moly

oxide price, he said. Moly oxide overseas was heard trading at over $14.50/lb inwarehouse Rotterdam last week, but there were deals this week reported at $14.25-14.35/lb CIF Busan/in-warehouse Rotterdam. The negative momentum in the moly market, spurred by talk that inventories are inflating in Rotterdam, has forced Korean sellers to quote ferromoly as low as $3334/kg CIF main ports Asia, two traders said. They rejected the offer as they were suspicious of the metal origin. Spot trade of other ferroalloys was lackluster due to the stronger US dollar, which was trading at Yen 81 compared to Yen 79 a week ago, sources added. Chinese spot ferrosilicon prices increase Chinas spot ferrosilicon prices were assessed at $1,390-1,400/mt FOB China Thursday, up from $1,380-1,400/mt FOB China a week earlier, as sellers reported more deals and improved demand. Chinese suppliers said they were able to close more deals this week at

lower offer levels. A northwest Gansubased trader sold 200 mt at $1,400/mt to a customer in South America, to load in April from Tianjin. An Inner Mongoliabased producer sold to several Japanese buyers at $1,390-1,395/mt this week, all to load in April from Tianjin, at a discount to the companys offer price of $1,400/mt FOB China. Sellers who did not close any deals this week said trading remained slow. Other offer prices were heard in the range of $1,400-1,430/mt, with most surveyed saying they would be amenable to selling at $1,400/mt. Prices are unlikely to deviate much from the current range in the near term, most suppliers predicted. Mayumi Watanabe and Vivian Teo SBB Steel Markets Daily March 9, 2012 12 Copyright 2012 The McGraw-Hill Companies Posco Specialty Steel issues 40 mt moly oxide tender TokyoBuying interest for molybdenum oxide powder picked up in South Korea

Friday with Posco Specialty Steel closing a 40 mt ferromolybdenum buy tender, market sources said. The ferromoly was for delivery by the end of March to its Changwon plant. Local traders said the number of inquiries for moly oxide powder, used for ferromoly making, increased, but deals were not reported. An offer was heard at $14.30-14.40/lb CIF Busan, and a bid at $14.20/lb CIF. Meanwhile, one Chinese trader said he was keeping his offer at $14.60/lb CIF/inwarehouse Rotterdam. Another Chinese trader suspended spot offers, saying the market was too slow. Chinese traders, who keep inventories at bonded warehouses in China, have told Platts their inventories stand at 40-80 mt, adding that they were not rushing to sell. Meanwhile, South Korean ferromoly plants, which typically buy from Chinese traders, hold moly oxide inventories in a wide range of 40 mt to 200 mt, excluding moly oxide for tolling arrangements, local sources said.

 Mayumi Watanabe with Hongmei Li in Singapore Silicomanganese price firms, fundamentals weaker LondonSilicomanganese prices continued to firm over the week on strong buying interested, sources said Friday. Silicomanganese 65:16 was assessed at Eur970-1,000/mt ($1,271-1,310) DDP Northwest Europe from Eur920-970/mt the previous week. Ive heard Eur1,020/mt delivered to a German mill, but not higher than that, one Europe-based trader said. Material is in the hand of traders with positions or producers. I wouldnt buy material now, its too risky. Material is tight now, but if we see a rush of production, prices are back down, he added. A second trader said he had been told of an offer at $1,380/mt DDP to a mill, but said that transactions to consumers were lower. Its dangerous at the moment, everybody is back buying and traders are taking

positions. Factories arent really buying that much material, he said. An Indian producer was booked out of material for March and April, but was offering 65:16 at $1,300/mt for May shipment. Indians are rushing to buy ore now and produce more alloys because the prices are getting good again, he said. A second Indian producer said he was also sold out of material until May shipment, but was cautious on the recent price increases. Its a 15% hike in prices, he said. Its difficult to understand why and whether these prices are sustainable. Jitendra Gill Marketplace Iron ore, 63.13%Fe Standard Sinter Feed Guaiba Vale sold at $143.75, 220,000 mt, passing Singapore Mar 14, Al 1.47%, Si 5.22%, P 0.055%, moisture 8.5%, market participants who received the tender said Iron ore, 61% Fe Australian Pilbara Blend fines Rio Tinto sold at $143.50/dmt CFR China Main Port, 165,000 mt, loading Mar 20-29 Iron ore, swaps TSI-basis Apr traded $136/dmt, Singapore-based trader said Iron ore, swaps TSI-basis Q2 traded $135.50/dmt, Singapore-based trader said Iron ore, 54% Fe Indian lumps Guangdong trader sold Thursday at $109/dmt CFR Main China port, 80,000-90,000 mt, loading from Mar 18-25, Al 8%, Si 7%, P

0.1%, S 0.03%, moisture 9% Steel, square billet Spot price up Yuan 10/mt from Thursday at Yuan 3,760/mt ex-stock Tangshan, mill source in Hebei said Steel futures October Shanghai rebar up Yuan 38/mt at Yuan 4,319/mt, from last trade on Thursday. Iron ore, 61% Fe Australian Mining Area C fines BHP Billiton sold Friday at $140.50/dmt CFR Shanghai, >45,000 mt, loading Mar 16-25 Iron ore freight$13-13.5/wmt Panamax Goa to China, shipping source said Iron ore freight$15.5/wmt Supramax Goa to China, shipping source said Iron ore freight$15/wmt Supramax east coast one port to China, shipping source said Iron ore 63.5/63% Fe -pegged at $148-149/dmt CFR North China Iron ore, 61% Fe Australian Pilbara Blend fines Henan-based steel mill pegs at $143/mt CFR North China Iron ore, 61% Fe Australian Pilbara Blend fines Singapore-based trader pegs at $142-143/mt CFR North China Iron ore, 54% Fe Indian lumps Guangdong trader sold Thursday at $109/dmt CFR Main China port, 80,000-90,000 mt, loading from Mar 18-25, Al 8%, Si 7%, P 0.1%, S 0.03%, moisture 9% Coking coal, premium HCC Indian trader would bid for Xstratas Wollombi at a maximum of $205/mt FOB Australia Coking coal, HCCChina mill was this week offered Australian second-tier HCC at $200/mt CFR, March, either Panamax or Capesize Coking coal, freightChina mill pegs Panamax ECAus to East China at $15/mt (This is a sample of trade and market information gathered by Platts editors as they assessed the daily iron ore, coking coal, steel, scrap and freight prices. They were first

published on Platts Metals Alert earlier in the day as part of the market-testing process with market participants. For more related information about that process and our realtime news and price services, please request a trial to Platts Metals Alert or learn more about the product offering by visiting http://www.platts.com/Products/metalsalert) News in Brief The London Stock Exchange will take a majority stake in the LCH.Clearnet Group, holding up to 60% of the clearing houses share capital in a deal worth up to Eur463 million ($608 million), the companies said Friday. Regulatory change and customer demand are creating significant new opportunities for clearing and risk management services globally, the companies said in the statement. Developing its post-trade capabilities, especially in clearing, is a key priority for the LSEG Group. This priority recognizes the importance of providing customers with an efficient and attractive service offering across each stage of the trading value chain, the statement added. The transaction meets LSEGs strategic objectives to continue

to build upon its existing assets and to seek new opportunities, particularly in the post-trade arena, accelerating diversification and growth for the LSEG Group, it said. Completion of the acquisition is expected by the fourth quarter and is subject to regulatory and other approvals, including anti-trust clearance. LCH clears a variety of ferrous swap contracts, including iron ore, hot-rolled coil and scrap, all of which are settled against reference prices published by The Steel Index, which is owned by Platts. It also clears trades on the London Metal Exchange, but the LME plans to build its own clearinghouse with a launch date currently targeted for the first quarter of 2014.