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Francis Browne 弗朗西斯.布朗Platts Managing Editor of Iron and Steel

普氏钢铁及铁矿石高级总监

Benchmark assessment of iron ore (IODEX)

Singapore 8th December 2009

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Platts’ experience in commodity benchmarking普氏在商品基准定价上的经验普氏在商品基准定价上的经验普氏在商品基准定价上的经验普氏在商品基准定价上的经验

Critical elements for Iron Ore spot price assessment铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素

Agenda 议题议题议题议题

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Platts’ experience in commodity market reporting普氏在大宗商品市场的信息服务普氏在大宗商品市场的信息服务普氏在大宗商品市场的信息服务普氏在大宗商品市场的信息服务

Transactions 交易Price assessments & market analysis 估价以及市场分析

Real-time news 实时新闻

Breaking news 实时新闻

Market analysis 市场分析

Historical databases 历史统计数据

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What Platts covers 普氏的服务范围普氏的服务范围普氏的服务范围普氏的服务范围

Oil & Gas

石油，天然气石油，天然气石油，天然气石油，天然气

Petrochemicals

石化，塑胶石化，塑胶石化，塑胶石化，塑胶

Metals, Steel, Iron Ore

金属金属金属金属,

钢铁钢铁钢铁钢铁,

铁矿铁矿铁矿铁矿

Coal 煤炭煤炭煤炭煤炭

Electric Power

电力电力电力电力，核能，核能，核能，核能

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Platts was “born” in 1909 普氏创立于普氏创立于普氏创立于普氏创立于1909年年年年

Platts was established in 1909. This is our 100th

Anniversary.

普氏于1909年成立，从事大宗商品行业的信息服务已经有一百年的历史。

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Platts: part of the McGraw-Hill Companies普氏能源资讯：麦格劳普氏能源资讯：麦格劳普氏能源资讯：麦格劳普氏能源资讯：麦格劳-希尔集团希尔集团希尔集团希尔集团下属机构下属机构下属机构下属机构

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Platts Global Positioning 普普普普氏氏氏氏全球全球全球全球主要代表处主要代表处主要代表处主要代表处

• New York 纽约总部

• London 伦敦

• Houston 休斯顿

• Washington 华盛顿

• Moscow 莫斯科

• Dubai 迪拜

• Singapore 新加坡(1986)

• Tokyo 东京

• Hong Kong 香港

• Guangzhou 广州 (2004)

• Beijing 北京 (2005)

• Shanghai 上海 (2007)

• Mumbai 孟买 (2008)

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Platts in the Market 普氏的市场地位普氏的市场地位普氏的市场地位普氏的市场地位

• Platts assessments are widely used as benchmarks in the commodity markets普氏估价被广泛用作大宗商品市场的基准

• Billions of dollars of commodities trade is settled against Platts assessments every day每天数以十亿美元计的大宗商品交易均以普氏估价为结算基准

• Two-thirds of global oil term contracts settle off Platts全球石油长期合同有三分之二是以普氏指数清算的。

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Platts’ Iron & Steel news & prices普氏钢铁资讯及价格普氏钢铁资讯及价格普氏钢铁资讯及价格普氏钢铁资讯及价格

Platts has published ferrous metals prices since 1981 and non-ferrous metals since 1989普氏自1981年起发布黑色金属价格，自1989年起发布有色金属价格

Platts’ customers include producers, end-users, traders, marketers, refiners, governments, regulators, analysts, managers and consultants普氏的客户包括：生产商、终端用户、交易商、中间商、炼厂、政府、监管机构、分析师、经理人以及顾问

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Platts focus: the spot market 普氏关注现货市场，因为它决定交易量更大的 长期合约 市场

Platts’ focus

普氏关注点普氏关注点普氏关注点普氏关注点

• Term contracts are priced on Platts assessments

长期合约定价以普氏现货估价为基准

• Futures settlement prices are often linked to spot

market 纸货 (期货以及掉期) 结算价往往以现货价为结算的基础

SPOT现货现货现货现货

TERM长约长约长约长约

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Derivatives need robust underlying spot benchmarks衍生品交易需要稳健的现货基准支持衍生品交易需要稳健的现货基准支持衍生品交易需要稳健的现货基准支持衍生品交易需要稳健的现货基准支持

Swaps掉期交易掉期交易掉期交易掉期交易

Futures衍生衍生衍生衍生品交易品交易品交易品交易

Term Contracts长期合约长期合约长期合约长期合约

Spot现货现货现货现货

•Spot prices are

established at the margin

现货价格以边缘主义为估算原则现货价格以边缘主义为估算原则现货价格以边缘主义为估算原则现货价格以边缘主义为估算原则

•‘Floating’ term contracts

reference off spot prices

“浮动浮动浮动浮动”的期约价格以现货价格的期约价格以现货价格的期约价格以现货价格的期约价格以现货价格为参考为参考为参考为参考

• Over-the-counter paper

swaps settle off or “price

out” against averages of

spot price assessments

场外纸货掉期交易以现货均价场外纸货掉期交易以现货均价场外纸货掉期交易以现货均价场外纸货掉期交易以现货均价为参考为参考为参考为参考

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Platts’ experience in commodity benchmarking普氏在商品基准定价上的经验普氏在商品基准定价上的经验普氏在商品基准定价上的经验普氏在商品基准定价上的经验

Critical elements for Iron Ore spot price assessment铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素

Agenda 议题议题议题议题

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Platts Assessment Principles 普氏估价的基本原则普氏估价的基本原则普氏估价的基本原则普氏估价的基本原则

• Platts adheres to a rigorous methodology 普氏恪守严格的价格评估方法和制度

• Platts methodology is open and transparent, responding to structural changes in the market普氏方法是公开而透明的，随着市场的构造性变化而改良的

• Platts talks to as many players as possible 普氏尽量与更多的参与者沟通

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Information Sources 信息来源信息来源信息来源信息来源

• Producers 生产商• End users 用户• Traders 贸易商• Brokers 经纪• Distributors 代理商• Shippers 货运商• Financial institutions 金融机构• Government entities 政府部门

• anyone Active & Reliable in the market市场上任何活跃而且可靠的人士

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Critical elements for Iron Ore spot price assessment

铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素

1.Accuracy 准确准确准确准确

2.High frequency高效高效高效高效

3. Independence 独立独立独立独立

4. Transparency透明透明透明透明

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1. Accuracy准确准确准确准确

Producers, consumers, traders, regulators and all those pricing in or out expect full convergence between market values and published values生产商、消费者、交易商、监管机构及所有市场参与者都期望市场价格与评估机构公布的价格完全一致

Platts benchmarks are the barometer of physical cargo value on the day of trade: that price is the marginal unit, the next immediate delivery-prompt, cash or spot普氏基准价反映当天的现货交易价格：该基准价以边缘主义为估算原则，反映下一即期交割货的价格

Critical elements for Iron Ore spot price assessment

铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素

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Cargo bids, offers and trades determine spot prices货货货货物的询购价、询售价以及成交情况共同决定现货价格物的询购价、询售价以及成交情况共同决定现货价格物的询购价、询售价以及成交情况共同决定现货价格物的询购价、询售价以及成交情况共同决定现货价格

A market assessment is an exclusive process...市场估价是一种独有的独有的独有的独有的估价方法......

Bids

询购

Offers

询售

...zeroing in on the tradable level……关注可成交价位

Daily assessments of iron ore CFR Qingdao

$/dmt Mid-point Change On day % change

IODEX 62% Fe 102.00-103.00 102.50 1.50 1.49

PLATTS IODEX 62% Fe CFR Qingdao (DAILY)

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60

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100

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2-Ju

n-08

30-J

un-0

829

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22-O

ct-0

820

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-08

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ec-0

821

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eb-0

920

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-09

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914

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ug-0

9 9

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ec-0

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IODEX methodology is well researched, robust and conceptually sound铁矿石现货指数估价方法经过详尽研究、理论稳健且概念合理

Assessment methodology accurately reflects spot market conditions using all relevant dimensions:估价方法全面、准确反映现货市场的情况

IODEX methodology is transparent, published, and applied consistently by professionals 铁矿石现货指数估价方法论透明公开，一贯为专业人士所使用

What value is being assessed?普氏估价时考虑的因素普氏估价时考虑的因素普氏估价时考虑的因素普氏估价时考虑的因素

� Timing 时间时间时间时间

� Delivery dates 交割日期交割日期交割日期交割日期

� Quality 质量质量质量质量

� Quantity 数数数数量量量量

� Location 地点地点地点地点

� Terms of trade 交交交交易条款易条款易条款易条款

� Time-stamping

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Benchmarking: Defining consistent standards

基基基基准：定义始终如一的标准准：定义始终如一的标准准：定义始终如一的标准准：定义始终如一的标准

• Many iron grades and data points may be used for assessment

估价涵盖了不同品种的钢铁，数据范围广泛

• Non-standard information is normalized to the market standard

所有信息经规范化处理，符合市场标准

• Extreme information is excluded from assessments估价时不考虑非常规的交易信息

• Performance risk – previous or known good performance also differentiates market participants

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Benchmarking: Defining consistent standards

X X

62%FeCFR Qingdao

� Timing 时间时间时间时间

� Delivery dates 交割日期交割日期交割日期交割日期

� Quality 质量质量质量质量

� Quantity 数数数数量量量量

� Location 地点地点地点地点

� Terms of trade 交交交交易条款易条款易条款易条款

Normalization:

Platts assesses value of 1% per Fe contentin the range 60 - 63.5% Fe fines.

我们对中品位(60-63.5%) 之间的1%铁品位进行评估，并据此推算出62%。

Daily assessments of iron ore on Platts Metals Alert

All values $/dry metric ton CFR Qingdao:

$/dmt Mid-point Change % Change

IODEX 62% Fe 102.00-103.00 102.50 1.50 1.49

63.5/63% Fe 105.50-106.50 106.00 1.50 1.44

65% Fe 110.50-111.50 111.00 1.50 1.37

58% Fe* 90.00-91.00 90.50 0.00 0.00 *Al = 4.0% max

Per 1% Fe Differential:

$/dmt Change

Mid Range 60-63.5% Fe: 3.50 0.00

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Critical elements for Iron Ore spot price assessment铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素铁矿石现货价格估价的关键因素

2. High Frequency高效高效高效高效

The spot market value is changing every single trading day – this fluctuation is observable现货市场价格在每个交易日内都有明显变动

Any assessment of price on a weekly basis would therefore lag real market movements若以周为单位进行估价，将滞后于实际的市场变动

Any weekly aggregation of reported trades or market opinion would only introduce more lagging若以周为单位汇总交易信息或市场意见，会增加估价中的主观因素

The first to publish DAILY iron ore prices -Now 18 months of DAILY 62% Fe IODEX price history

PLATTS IODEX 62% Fe CFR Qingdao (DAILY)

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820

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920

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The spot market is volatile and needs accurate daily pricing

-6

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2-Jun-08 17-Sep-08 9-Jan-09 30-Apr-09 18-Aug-09 4-Dec-09

Inter-Day price volatility of 62% Fe iron ore CFR China (IODEX)

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Critical elements for Iron Ore spot price assessment铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素

3. Independence 独立独立独立独立

Platts is completely impartial, and has not signed a non-disclosure agreement with any information provider普氏持公平态度，未与任一信息提供者签署保密协议

Platts is price-neutral and does not represent either side of the marketplace普氏对估价持中立态度，不代表市场上买方或卖方

Platts does not accept for assessment trade information which cannot be verified with a counterparty在估价过程中，普氏不会接纳未经证实的信息

Platts does not accept as market value those bids or offers which are company-specific and not open to the marketplace对于针对特定公司的价格、或是不对市场其他交易商公开的询购价及询售价，普氏在估价过程中不会考虑

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Critical elements for Iron Ore spot price assessment铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素铁矿石现货价格评估的关键因素

4. Transparency 透明透明透明透明

Platts is the market leader in publishing transparent information: all details are made known, as all details influence price普氏是业界领先者，其公布的信息高度透明: 对外公布所有影响价格的细节

Platts assessments are based on fact and performance: transactions are verified, and performance of deals is monitored普氏估价以事实为基础: 核实各项交易的真实性，并监测具体执行情况

Platts’ standards encourage responsible and efficient market behaviour普氏的估价方式将促成高效有序的市场行为

Platts has established systems for responsible methodology reviews, communication to the marketplace, and internal compliance普氏构建了有效的方法论评估、市场沟通及内部监测体系

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Benchmarks evolve into higher standards & complexity基准价制定的演进：标准更高、综合性更强基准价制定的演进：标准更高、综合性更强基准价制定的演进：标准更高、综合性更强基准价制定的演进：标准更高、综合性更强

Initial Stage初级阶段初级阶段初级阶段初级阶段

• First-tier players identified

界定一线参与者界定一线参与者界定一线参与者界定一线参与者• Phone surveys launched

引入电话调查引入电话调查引入电话调查引入电话调查•‘Soft’ MOC process

introduced

推出推出推出推出“软性软性软性软性 ”普氏估价窗口普氏估价窗口普氏估价窗口普氏估价窗口• Assessments published

daily

发布每日估价发布每日估价发布每日估价发布每日估价• Market education process

begins

启动市场教育启动市场教育启动市场教育启动市场教育

• Assessment window

introduced

推出估价窗口推出估价窗口推出估价窗口推出估价窗口• Participants named

公布参与者名称公布参与者名称公布参与者名称公布参与者名称• Firm bids/offers

明确询购明确询购明确询购明确询购/询售实盘询售实盘询售实盘询售实盘• Price formation in real

time

实时价格信息实时价格信息实时价格信息实时价格信息• Defined audit trail

明晰规定记录方式明晰规定记录方式明晰规定记录方式明晰规定记录方式• Performance-based

以交易履行作为估价基础以交易履行作为估价基础以交易履行作为估价基础以交易履行作为估价基础

Middle Stage中中中中级阶段级阶段级阶段级阶段

• Price range narrows

收窄估价范围收窄估价范围收窄估价范围收窄估价范围• Verification and traceability

systems

制定交易验证及追溯体系制定交易验证及追溯体系制定交易验证及追溯体系制定交易验证及追溯体系• Market activity published in

real time

实时公布市场动态实时公布市场动态实时公布市场动态实时公布市场动态• Transparency emerges

市场交易渐趋透明市场交易渐趋透明市场交易渐趋透明市场交易渐趋透明• Contact with next-tier

players

联系二线参与者交流信息联系二线参与者交流信息联系二线参与者交流信息联系二线参与者交流信息

Advanced Stage高高高高级阶段级阶段级阶段级阶段

Platts publishes cargo trades, bids and offers in real time

Market Heards (Mumbai, Singapore --4Dec2009)

Iron ore trade reported 60/59 Fe, $95.5/dmt CFR North China, vessel loading shortly, panamax, Australian trader concluded deal

Iron ore trade heard done, 64/63 Fe at $83 FOB ChennaiIron ore trade 63/62 Fe heard done $79/dmt FOB KrishnaputnamIron ore trade 63/62 Fe heard done $79/dmt FOB Karnataka

Iron ore offer 63.5/63 Fe $80 FOB Chennai, 30kt, HK trader reports offered freight on a dry basis $20/dmt

Iron ore offers 63.5/63 Fe reported $105-107/dmt CFR North China, traders reportedIron ore offer 61/60 Fe, East coast Indian miner offering, targeting $99/dmt CFR North

ChinaIron ore offer heard $108-110/dmt CFR North China, 63.5/63 Fe, HK trader, 30kt, loading

east coast India in next few days

Iron ore bid reported $106/dmt CFR North China, 30kt, loading east coast India in next few days

Iron ore freight $16/wmt, cape vessels, Australia to ChinaIron ore freight, $42/wmt, cape vessels, Brazil to ChinaIron ore freight $25/wmt, before demurrage, handymax Haldia / Paradip to China

Daily freight and FOB netbacks

IODEX: Platts Daily Asian iron ore fines FOB netbacks (4Dec09)

Route Vessel Type Freight rate Moisture IODEX($/dmt)Australia Capesize $ 17.00/wmt 8.03% 84.02 India West Handymax $ 22.50/wmt 8.11% 78.01India East* Handymax* $ 24.00/wmt 8.00% 76.41Brazil Capesize $ 44.00/wmt 9.00% 54.15 South Africa Capesize $ 30.00/wmt 3.00% 71.57*Typical two-port co-loadings from Haldia and Paradeep

Freight differentials to major import ports from basis Qingdao on a Free Out ($/wmt):

To North China: Caofeidian, Tianjin & Xingang 0.75To East China: Beilun -1.00To South China: Zhanjiang & Fangcheng -1.25

Platts IODEX Forward Curve assessments

IODEX 62% Fe CFR North China OTC swaps assessment: Dec 7

IODEX 62% $/dmt Mid-point Change %change

Jan 10 100.00-101.00 100.500 +1.50 +1.51

Feb 10 100.00-101.00 100.500 +1.50 +1.51

Q1 2010 100.00-101.00 100.500 +1.50 +1.51

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IODEX is highly correlated to steel prices globally

Iron ore CFR China & HRC EU Imports

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2/06/2008 6/10/2008 2/12/2009 6/19/2009 10/23/2009

200

600

1000IODEX CFR China

HRC CIF Antwerp

High correlation with steel makes iron ore pricesuseful for risk management

High correlation between iron ore and steel spot prices

90%

95%

100%

105%

110%

2/06/2008 6/10/2008 12/02/2009 19/06/2009 23/10/2009

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Meet the Iron Ore team at Platts普氏铁矿石团队成员普氏铁矿石团队成员普氏铁矿石团队成员普氏铁矿石团队成员

• Francis Browne-Global Managing Editor Iron & Steel/钢铁市场全球执行编辑

• Joe Innace-Managing Editor Steel Markets Daily/钢铁市场日报执行编辑

• Annalisa Jeffries-Editor Iron Ore/

铁矿石市场编辑

• Jessy Xia-Editor Iron Ore & Steel/

铁矿石及钢铁市场编辑

• Julien Hall-Editor Iron Ore/铁矿石编辑

• Alvin Yee-Editor Steel/钢铁市场编辑

• David Ernsberger-Bureau Chief Singapore /新加坡总编辑

• Tom Enger-Director Methodology & Pricing/方法论及估价部门总监

• David Hanna-Senior Director of China普氏中国高级总监

• Karen McBeth-Editorial Director Metals/金属市场编辑总监

• Dan Tanz-VP News & Pricing Platts /普氏新闻及估价部门副总裁

• Please contact/垂询详情，敬请联系垂询详情，敬请联系垂询详情，敬请联系垂询详情，敬请联系:Francis_Browne@platts.comIODEX@platts.com