mbweekly20110829

Billet Bust-up

large proportion of warrants cancelledSteel contract ‘is working’, LME says: page 11

Monday 29 August 2011/ Number 9215/ World steel and metal news since 1913

DOMestiC DOlDRuMs

Vietnam’s producers export billet on weak local demandRebar, wire rod output slashed: page 13

indian steelmakers bullish in spite of slowdown: page 16

Focus

Glencore eyes M&A OppORtuNitY KNOCKs

Healthy balance sheet will allow Glencore to expand production side of businessCompany negotiates Mutanta and Kansuki merger, seeks full control of Murrin Murrin

Net profit up 57% on higher prices, larger volumes Copper, lead, zinc, marketing profits down on China destocking Copper output up 29% year-on-year Aluminium division posts greater than five-fold rise in Ebitda Iron ore sales volumes drop 29%See pages 5 and 14

LME WEEK 2011GET IN TOUCH - GRAB A GREAT POSITION BEFORE YOUR COMPETITORS DO

26 SEPTEMBER 3 OCTOBER 10 OCTOBER

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Monday 29 August 2011 | Metal Bulletin | 3

Ivan Glasenberg did not use the old (and inaccurate) cliché that the Chinese word for crisis is composed of two characters: one for danger, and one for opportunity. But the Glencore boss may well have had it in mind when preparing his commentary on the company’s first-half results last week.

There has been a lot of fearful talk during this wild, wild August of a new credit crunch, a collapse in consumer confidence and a prolonged bout of risk aversion in commodities and financial markets.

Glasenberg gave a nod to all these dangers, which he said gave “cause for concern”.

But he was more keen to talk about the less-discussed aspect of the recent financial turmoil: the opportunities it presents to larger companies, such as Glencore, which are better protected against volatility.

Some struggling producers may want to offload assets at low prices to generate cash quickly. Who better than cash-rich, post-listing, fat-profits Glencore to come to the rescue?

Glasenberg said the company, which made a $2.45 billion profit in the first half, is looking at “many, many assets” around the world. He even gave a few helpful hints for potential sellers.

“We will look opportunistically – for example, if a company wants to dispose of its nickel assets or a producer with a pre-financing agreement wants to convert to equity,” he said in a conference call.

Glencore is, of course, not the only major metals and mining group picking over the stock market

carnage of the last month in search of an opportunity.

Marius Kloppers, ceo of BHP Billiton, had much the same thing to say after his company announced record profits (see page 14).

“The balance sheet has got capacity,” he said.Kloppers all but ruled out takeovers in the iron

ore and coking coal sector, but cited base metals, petroleum, oil and gas, and potash.

Glencore has an immediate chance to expand its production assets base – which was already a key pillar of its post-IPO strategy.

That process began even before the results were announced last week. Glencore launched a $285 million bid to buy out the 27% it does not own in nickel miner Minara Resources, whose nickel it markets.

It will undoubtedly want to cement other existing relationships to backward-integrate its supply chain into production.

The timing of the market’s crash, just three months after it went public, must look particularly sweet from Glasenberg’s point of view.

OK, so its stock is down 24% from the London debut. But if the IPO had been scheduled those three months later, it would likely have been shelved: Glasenberg would not get his first interim dividend ($163 million) and the company would not have anything like the $10.4 billion war chest it now has for a spending spree.pSee Glencore on M&A hunt as results improve: page 5

Glasenberg eyes opportunity in crisis

Non-ferrous metals

4 | Metal Bulletin | Monday 29 August 2011

WiNdhoek by Felix NjiNiResource-rich Papua New Guinea (PNG) wants ownership of the country’s mineral wealth to be transferred to traditional landowners under a comprehensive review of the country’s mining laws, mining minister Byron Chan said.

The prospect has shaken mining companies operating in the country, who fear that their planned investments might be affected. However, the proposed changes to mining law will probably only affect new projects, Chan said.

An Australian radio station quoted Chan as saying that the government wants to amend the current situation in which local communities do not benefit from the country’s mineral resources.

“We would like to replace that almost immediately – to revert ownership to local landowners, so that the state does not own anything,” Chan said.

PNG to give resource ownership to traditional landholders

Mining law review Southeast Asian nation to restore local rights and benefits

“We are proposing an amendment to look into future licences. Current agreements won’t be affected,” he explained.

“All of these things are being undertaken now by the [mining ministry], so there won’t be chaos. Landowners will have relationships with the mining companies themselves, with the government acting just as a

regulator,” he added. PNG’s mining sector employs

more than 30,000 people and contributes about 80% of the country’s foreign currency earnings.

Mining majors BHP Billiton, Xstrata Copper, Rio Tinto, Barrick Gold and Harmony Gold are among the companies with operations in the mineral-rich island nation.

The proposed changes could result in these companies and others having to negotiate with a variety of traditional landowners. The miners argue that this would create new and unnecessary levels of bureaucracy.

“Instead of negotiating with one central bureaucracy that controls these things in the state, you now have to deal with myriad others,” Graham Briggs, ceo of Harmony Gold, said.

“There are probably 800 different landowner groupings, so you can imagine how complex negotiations will be,” he added.

Chan: ‘there won’t be chaos’

loNdoN

Glencore’s: Ni, Fe-Cr, sales fall in first halfGlencore sold 97,800 tonnes of nickel in the first half of 2011, down by 17% on sales volumes in the corresponding period in 2010, after last year’s restocking by stainless steel producers in the first half was not repeated to the same extent this year.

The company also reported lower demand from consumers in May and June as uncertainty over global economies prompted stainless steel producers to fall back on stocks.

“The global stainless steel industry experienced continued growth for the first four months of 2011. However, the remaining two months of [the first half] experienced a slowdown due to destocking, falling nickel prices and the broader macroeconomic events and associated uncertainties,” Glencore said.

“Consequently, nickel markets were characterised by strong demand from stainless mills during the first four months of 2011 compared with 2010 and some weakness thereafter,” it added.

Murrin Murrin – which Glencore is in negotation to take full control of– produced 14,625 tonnes of nickel in the first half of the year, compared with 14,512 tonnes a year earlier.

A series of electrical storms, heavy rains and flooding disrupted production at Murrin Murrin in the first half of the year, while the failure of an acid plant heat exchanger in June saw production continue at reduced rates before the tie-in of a new unit in July.

base MetalsRusal’s Kirkvine refinery restart delayed as alumina tags fall 6

MiNors‘Fraudulent’ manganese flake imports are ‘sidelining traders’ 7

oresPrice of ferro-moly slips further as sellers chase deals 9

iN this seCtioN

loNdoNRevenues at Canadian high-purity metals supplier 5N Plus grew by over 500% in the fourth quarter of its financial year, ended May 31, following its acquisition of speciality minor metals group MCP.

Group revenues stood at C$119.8 million ($120 million) at the end of its fourth quarter, up by 507% from revenues of C$19.7 million in the corresponding quarter in 2010.

Revenues for the full year rose to C$178.8 million, up by 153% on the previous twelve months. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose to C$19.2 million, up by 209% from the prior year.

“With the acquisition of MCP, we have literally transformed our

company into a speciality metals and chemicals powerhouse with a strong focus on clean technology markets,” 5N Plus president and ceo Jacques L’Ecuyer said in a statement to investors on August 24.

The results were “very much in line with our expectations and quite indicative of what we believe the future holds for our company”, he said.

5N Plus acquired MCP in April at a cost of €236 million ($337 million) and is now assimilating the two companies under separate electronic materials and eco-friendly materials divisions.

The eco-friendly materials segment is a new division serving MCP’s customer base in the pharmaceutical, industrial and

metallurgical industries.In the fourth quarter, this

segment contributed C$57.4 million to 5N Plus revenues.

Between the date of acquisition and the end of the fiscal fourth quarter, MCP’s business activities contributed around C$90 million to 5N Plus revenues across both divisions.

5N Plus expects that the company will generate revenues in excess of C$200 million per quarter, the company said in a conference call on August 25.

MCP holds more than a 50% share in the global bismuth and bismuth chemicals market and is also highly active in the gallium, indium, selenium and tellurium markets.

5N Plus revenues grow 500% after MCP deal


More opportunities Switzerland-based trader will try to expand production side of business

LONDON BY CLAIRE HACKCommodities trading company Glencore is on the hunt for merger and acquisition opportunities in the coming year, as its balance sheet as of June 30 shows liquidity of $10.4 billion and it continues to reap the benefi ts of a high debut valuation on the London Stock Exchange (LSE).

It may also be able to take advantage of lower sale prices as companies struggling in the wake of the US and European debt crises look to divest some of their assets as quickly as possible.

“We will look opportunistically – for example, if a company wants to dispose of its nickel assets or a producer with a pre-fi nancing agreement wants to convert to equity,” Ivan Glasenberg, Glencore ceo, said in a conference call on August 25.

“We’re trying to expand the production side of the business. Today, we do have the balance sheet across the board and we’re looking at many, many assets around the world,” Glasenberg said.

Glencore on M&A hunt as results improve

He declined to be specifi c about which assets Glencore might look to acquire, but added that the company is “excited” about possible opportunities.

Glasenberg acknowledged the impact of market volatility, saying it is a “cause for concern” at Glencore, while at the same time it is “remaining alert to the potential opportunities that such an environment uncovers in our end markets”.

“There is continued demand in China and net growth in India, but there will be tight supply and tight conditions for a while,” he said.

“We will ramp up our industrial assets for our own production feeding into Glencore. There will

be more opportunities to blend our production with third parties and more opportunities to arbitrage the pricing,” Glasenberg added.

The company also has an additional $2 billion available under a committed 364-day borrowing facility, as well as $427 million of tax benefi ts to support it, according to cfo Steven Kalmin.

The $427 million of tax benefi ts resulted from the reorganisation of the Glencore Group as part of its fl otation on the stock market.

“This is a real asset. That’s tax which we would otherwise have had to pay in the near term. It will be eaten up over the period we generate Swiss taxable income,” Kalmin said.

“The business is also going to see some improvements in net cost as we’ve seen improvements in the variable cost of funding of the IPO [initial public offering] of 50 basis points,” he added.

In the nearer term, Glencore is continuing with discussions to merge its Mutanda operation in the Democratic Republic of Congo (DRC) with the neighbouring

Kansuki operation, as well as proceeding with its plan to bring the Minara’s Murrin nickel operationsin Australia under its exclusive control.

“Regarding Kansuki and Mutanda, there’s a synergistic effect and we’re negotiating to increase our shareholding above 50%,” Glasenberg said.

“In Minara, it was always a complicated structure. We believe the pricing is favourable at these levels and it makes good sense to clean up the structure by bringing it under Glencore control.”

Glencore plans to buy up the remaining 27% of the Minara project at a total cost of $285 million, Glasenberg said.

Glencore raised fi rst-half profi ts by 57% to $2.45 billion on higher prices for its metals and other commodities.

First half revenues rose 32% to $92.1 billion on higher prices and generally greater vloumes

LONDON

Glencore: Cu, Pb, ZnGlencore‘s profi ts from its copper and zinc marketing in the fi rst half of 2011 fell, as China ran down bonded inventories on higher prices.

The group sold 1.8 million tonnes of zinc metal and concentrates, down from 2 million tonnes a year earlier, while copper metals and concentrates totalled 1.5 million tonnes, down 17%.

Lead sales volumes were unchanged at 400,000 tonnes.

Adjusted Ebitda from metals marketing was the same at $635 million, while copper, lead and zinc profi ts were down, Glencore said.

The decline in profi ts in selected base metals came on a period of destocking in China, driven by high metal prices seen since the third quarter of last year, Glencore said.

Meanwhile, Glencores’s total copper output rose 29% in the fi rst half on stronger production at its Katanga and Mopani mines, up 72% year-on-year to 43,000 tonnes and 57% to 49,600 tonnes respectively.

Contained copper produced from its own feed sources totalled 143,900 tonnes, up from 111,600 tonnes a year earlier.

Copper metal production at Kazzinc, 50.7% owned by Glencore, was 25,800 tonnes, down from 28,900 tonnes.

Sales revenues at Kazzinc were also affected by the increase in Chinese spot treatment charges and refi ning charges (TC/RC) after the Japanese earthquake in May.

Kazzinc has now stockpiled some $127 million of copper concentrate, as it awaits a return to normal spot market conditions in the second half of the year, Glencore said.

LONDON

Glencore: Al division Glencore’s aluminium division posted Ebitda of $52 million in the fi rst half of 2011, on revenues that climbed 26% year-on-year to $281 million.

This compares with Ebitda of just $9 million in the corresponding period last year.

The company’s sales of aluminium and alumina totalled 6.5 million tonnes in the fi rst six months of the year, up 16% from 5.6 million tonnes in the fi rst half of 2010.

“Market conditions in aluminium have generally been favourable, with inventory-fi nancing transactions and logistics bottlenecks creating signifi cant premium support,” Glencore said.

Follow us on: Linkedin Metal Bulletin Group; and Twitter @metalbulletin Follow us on: Linkedin Metal Bulletin Group; and Twitter @metalbulletin

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fall as arbitrage emerges4. Downturn causes

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5. Papua New Guinea to transfer resource ownership to traditional landowners

6. FeMo price slips further as sellers chase deals

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9. South Africa producers oppose plan for chrome export levy

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Most read non-ferrous stories in the week to August 26.See www.metalbulletin.com

Glasenberg: looking at assets

Non-ferrous metals


Base metals: http://www.metalbulletin.com/Base-metals.html

New York SuzY waiteThe restart of United Co Rusal’s idled Kirkvine alumina refinery has been postponed, with several market participants speculating that a restart is unlikely to happen this year because of an oversupply of alumina and falling prices.

Rusal initially planned to restart Kirkvine in July, which would have doubled its available capacity in Jamaica to 1.2 million tpy.

Kirkvine, owned by Rusal subsidiary West Indies Alumina (Windalco), was idled in 2009 amid the global downturn.

But the refinery did not ramp up operations last month, a Rusal spokeswoman told MB sister publication AMM, noting that the company is now in negotiations with the Jamaican government regarding taxes.

“The reopening of Kirkvine is expected upon completion of these negotiations,” she said, declining to comment further.

The Jamaican government and the Jamaican Ministry of Mining and Energy did not return calls

rusal’s kirkvine refinery restart delayed as alumina tags fall

seeking comment. Several market sources said the

start-up delays are not a surprise as an oversupply of alumina has led to a depreciation of the price.

Alumina prices have slumped to around $370 per tonne from $418 per tonne in April, and many anticipate a further drop.

With prices falling—and Rusal thought to be long material—a restart of the refinery may not even take place this year at all, some market participants predicted.

“I think a lot of people doubt that Kirkvine will come on this year,” one alumina trader said.

“A lot of people perceive that Kirkvine is not going to come on as quickly as Rusal initially said.

[Rusal] could be completely long.”A second trader agreed, pointing

out that the higher cost of production in Jamaica, coupled with the decreasing price of alumina, makes a Kirkvine restart this year questionable.

“The market all over is long,” he said. “It just keeps depressing the price. We don’t need another Jamaican refinery to add to that fuel.”

This oversupply situation was not unexpected, he added. “Typically, what happens is alumina refineries have a very optimistic view of future markets, and then they in turn become a self-fulfilling prophecy, and they make their own bed by miscalculating the future forecast of demand, and they end up long.”

He said, estimating that the alumina market, excluding China, is long by 750,000 tonnes this year, perhaps pushing alumina prices as low as $350 per tonne.

Kirkvine is one of Windalco’s two 600,000-tpy alumina refineries. The second, Ewarton, was restarted in June 2010.

São Paulo

Metalis adds 96,000 tpy of billet capacityMetalis Group plans to launch a new aluminium billet plant at the start of 2012 at its Alumínio Nordeste extrusions facility in northeastern Brazil.

By the middle of next year, the plant will run at close to capacity of 96,000 tpy of extrusion billet, Metalis vp Omar Mourad told MB on the sidelines of MB’s Aluminium Latin America conference in São Paulo (August 18–19).

At the same time, the company will more than double its capacity to produce extruded profiles to almost 18,000 tpy, from 8,000 tpy.

Metalis might start to import primary aluminium ingot to feed the new billet plant at Alumínio Nordeste in Pernambuco state, commercial director Osmar Marchiori told MB.

“Negotiations are under way and we’re opening our range of options of ingot suppliers. Imports are one option,” Marchiori said.

Metalis buys ingots mainly from BHP Billiton to feed Metalisul in Rio de Janeiro state — the former Valesul smelter and billet producer acquired from Vale in the beginning of 2010.

Metalisul’s 95,000 tpy smelter has been out of operation since April 2009, because of higher energy prices.

SPotlight Brazil’s aluminium sector in split on import duties

kirkvine alumina Market speculates that idled plant unlikely to restart in 2011

São PauloBrazil’s aluminium industry must find a compromise between extruders fighting for the removal of import taxes on primary aluminium, and smelters that want them retained.

“This trade-off will be very difficult to achieve […], but reducing the duties could be an alternative for the industry,” Rodney Oliveira, a Brazilian trader from US-based Metal Exchange, said at MB’s Aluminium Latin America Conference in São Paulo.

Downstream aluminium companies want the government to get rid of import duties to ease tightness in domestic supply,

which could deepen as expansion of extrusion capacity coincides with slow growth or even a decline in aluminium output.

Last year, Brazilian smelters produced 1.53 million tonnes of primary aluminium, with apparent consumption of aluminium products at around 1.3 million tonnes.

But consumption is expected to be around 13.2% higher this year, while production is falling due to lower output from Votorantim Metais and the permanent closure of a Novelis smelter.

First-half output from all Brazil’s primary producers fell by 6.8% on the year to 709,600 tonnes.

Higher energy costs mean that the future growth of primary aluminium capacity will be unable to keep up with the expansion of Brazil’s capacity for billet, profiles, and other finished products.

“If demand continues growing faster than domestic production and import tariffs continue unchanged, then the domestic premium in Brazil will be in correlation with USA Midwest premiums plus the import tariff and logistic cost barriers,” Luis Angel Calderón, director of trading company Nutec America, said.

Premiums for ingot in Brazil reached $300 per tonne earlier this year.

The average level has softened in the past few weeks because of lower London Metal Exchange prices and a temporary slowdown in the Brazilian market.

Brazil operates a 6% tax on aluminium ingot imports and a 12% tax on billet on most imports.

In a sign of pent-up demand for imports, inbound shipments from Argentina and Venezuela – both exempt from the tax under a trade agreement – have ballooned this year.

In the first seven months, imports of non-alloyed aluminium ingot rose to 58,207 tonnes, compare to 17,752 tonnes for all of 2010, and 3,922 tonnes in 2009.

Kirkvine restart questionable

Non-ferrous metals


Zinc & Minors: more news at www.metalbulletin.com

New York bY ThorsTeN schierElectrolytic manganese flake allegedly smuggled out of China whose value is subsequently under-reported to US Customs is keeping prices at levels where US traders cannot compete.

“They smuggle it to Vietnam to save on the export duty. At the same time, they artificially lowball the price they bring in to have an advantage on the 14% duty rate,” one trader said.

“It’s fraudulent,” a second trader said. “It’s not a level playing field.”

The first trader said the advent of cheap imports has severely affected his business. “Up to a year or two ago, we were a major supplier to the steel industry, but now we do very little,” he said.

US prices are around $1.80 per lb, but some traders said it is impossible to sell legally imported material at these levels. “I’m consistently 6 to 7 cents above (those levels),” the second trader said, adding that consumers, seeing lower numbers elsewhere, simply are not buying. “I can’t sell a single tonne,” he said.

‘Fraudulent’ manganese flake imports are ‘sidelining traders’

The practice of smuggling material out of China into Vietnam is well known in ferro-alloys, but traders allege that some importers of electrolytic manganese flake are also tampering with invoices to reduce the payment of the 14% import duty.

One US-based trader brought in electrolytic manganese flake in May at $2,687.09 per tonne ($1.22 per lb) cif Chicago, according to US Customs figures. This was well below a December shipment at $3,350 per tonne ($1.52 per lb) cif Baltimore.

“The discrepancies are huge,” the second trader said.

With financing, warehousing and transportation costs, the December shipment would have a breakeven price of around $1.78 per lb, the second trader said, only marginally below the US sales price, while the May shipment would have provided a hefty profit margin.

Prices in China are between $3,500 and $3,700 per tonne fob, traders said, meaning current US prices make importing material unprofitable.

LoNdoN

Gallium prices slip on weaker sales, market awaits recoveryGallium prices slipped on August 24 as sellers reported weaker concluded business in Europe and Japan, while the domestic market in China remained brittle.

MB free-market gallium fell to $820-890 per kg, from $830-910 per kg at the beginning of last week.

Activity in Europe and the USA was relatively thin and sales at $900 are no longer achievable, sources said.

Domestic prices in China were also lower at 5,000 yuan ($783) per kg, down 300 yuan from the start of the month, a refiner in China said.

Gallium has been under pressure since around mid-May due to a lack of demand for material, the refiner told MB.

Reports that a major user of gallium metal has been destocking have exacerbated the weakness in the market seen throughout the summer, a source in Europe said.

“If [the company] is destocking it has a big impact because they are a big buyer and the market is small,” the source said.

In the longer term, the demand outlook for gallium remains bright. Additional LED manufacturing capacity in Japan coming online in October, and strong emerging market demand, should support fourth quarter sales, they said.

shaNGhai

china zinc ore, conc imports hit six-month high as July Tcs jumpChina’s imports of zinc ore and concentrate jumped by one-third in July in response to higher treatment charges (TCs) but are expected to fall back in August with the slide in TCs.

Zinc ore and concentrate imports recovered from a 31-month low in June to reach 244,615 tonnes in July, up 32.6% month-on-month and 25.3% higher year-on-year, according to customs data released late on August 22.

“Both local and overseas zinc concentrate suppliers have actually been reluctant to sell so far this

year. This [imports increase] was mostly because of a rise in TCs for July,” an analyst in Shanghai said.

In July, spot zinc TCs rose as high as $105 per tonne, from below $100 in previous months, sources said.

Spot TCs have since fallen as low as $90 per tonne, so analysts expect imports to decrease for August.

Also in July, imports of refined zinc fell by 35.9% month-on-month and 50.8% year-on-year to 16,237 tonnes, the lowest in two-and-a-half years, according to customs. This was despite the zinc import tax dropping to 1% in July from 3%.

“This is mainly because of the negative price gap between the overseas and local market,” another analyst in Shanghai said.

New York

Us zinc premiums stay firm, boosts NoLa metalUS zinc premiums remainde firm last week, with most North American producers sold out of spot material and imported zinc stored in New Orleans looking increasingly attractive, even amid tentative signs of lower offers, market participants said.

MB’s sister title AMM heard of one offer as low as 5 cents per lb for decent volume and nearby delivery, although it was unclear if a deal was signed. That premium was significantly below AMM’s range of 6 to 8 cents per lb for transactions.

At the same time, rumours are

circulating that one consumer has already signed a contract to pay premiums of 7.5 to 8.5 cents per lb for all of next year, slightly higher than the 7.5-cent figure that was being bandied about the market in July as a starting level for negotiations.

The mixed signals are causing some confusion about the real fundamentals in the North American zinc market.

There is perceived tightness due to warehouse financing deals, but demand is not yet high enough to warrant concern about supply.

Producers are thought to be sold out for the second half of the year, largely due to issues with their own operations rather than higher demand, market sources said.

import undercut Material being smuggled from China to Vietnam to avoid tax

US Customs: smugglers under-report imports value


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Non-ferrous metals


Ores & Alloys: http://www.metalbulletin.com/Ores-and-alloys.html

LoNdoN by jethro wookeyEuropean ferro-molybdenum prices slipped further on August 24, as those looking to sell material offer lower prices into a quiet market, and economic uncertainty rules out long-term deals.

Western-grade ferro-moly dipped to $36-37 per kg from $36.10-37.20 previously, with deals scattered across the range.

“There’s not much activity on the market, and we’ve seen some softening,” a producer said. “A lack of good activity means some people have become more aggressive trying to liquidate parcels.”

Material went in an internet auction at the bottom of the range and a producer reported small-volume sales at $37 per kg.

“The market is waiting for more activity, but there are indications the economy will slow in the coming months,” the producer said.

There is debate over the impact

Price of ferro-moly slips further as sellers chase deals

of South Korean material on the European market after its exemption from EU duty in June.

“The Korean material shipped in June, before the agreement began, and is now pushing ferro-moly prices towards zero margin over oxide prices,” a trader said.

But others claimed that Korean

metal has not yet had a discernible impact on the European market.

“I’ve not seen Korean material offered, and I was looking for some just today,” a second trader said.

Drummed molybdic oxide remained at $14.40-14.70 per lb on August 24, with little in the way of reported business since last week.

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Chinese silico-manganese soars to ten-month highChina’s silico-manganese prices have surged to 9,000 yuan ($1,406) per tonne, a ten-month high, as production continues to be curtailed by power restrictions.

Prices rose to 8,800-9,000 yuan per tonne for silico-manganese of minimum 65% Mn and maximum 17% Si, up from 8,600-8,800 yuan two weeks ago.

“Most smelters in the south have had to close, and others have been told to lower production,” said Huang Haisheng, gm of Sinosteel Guangxi Ferro-alloy Co, at the 3rd China Ferro-alloys Industry Development Market Forum in Dalian on August 20-21.

“This is expected to last till March or April next year, and thus lend support to the rally,” he said.

wiNdhoek

South africa producers oppose plan for chrome export levySouth African ferro-chrome producers are against a proposed levy on exports of unprocessed chrome, which they say could result in lower production.

Investment in smelting capacity is already hampered by insufficient electricity supplies, they said.

Consultant McKinsey & Co’s Johannesburg unit is conducting a study on the effects of the proposed export levy, MB understands.

“Some chrome producers have commissioned a study by McKinsey to establish what would happen to chrome ore exported from South Africa should the export levy be instituted,” a senior South Africa mining executive told MB.

The study should be published at the end of August, he said.

McKinsey declined to comment. Speculation has been growing

that the South African government wants to follow the example of Zimbabwe and restrict all exports of unprocessed chrome by bringing in the export tax.

In May this year, Zimbabwe reasserted a ban on exports of unprocessed lumpy chrome.

Despite calls for miners to process minerals locally in South Africa, companies say this has not been possible because of limited electricity supplies.

“There is a shortage of electricity to feed into smelters to beneficiate locally. If there is no power available, how does one beneficiate raw chrome?” Metmar ceo David Ellwood said to MB.

Ellwood said that an export levy will prevent southern African chrome miners competing with India, Turkey and Albania for the Chinese market.

briefsChina’s ferro-chrome imports fell for a fourth month to 114,034 tonnes in July on weak demand and a rise in domestic supply.Chrome ore imports, at 621,287 tonnes, also stayed near June’s ten-month low, with market participants not expecting much improvement for the rest of the year. Imports of ferro-chrome with more than 4% carbon by weight plunged to an 11-month low in July, down 17.6% from June and 4.85% lower year-on-year, according to customs. “Downstream demand from stainless steel and special steel sectors is really bad. This comes as domestic producers up their game to try to compete with foreign producers,” an analyst in Beijing said.

Chile’s Molymet has reported a net profit increase of 17.4% in the first half of the year and cited higher molybdenum prices as the main reason. Molymet’s profits in H1 2011 were $61 million, in comparison with $52 million registered in the corresponding period of 2010. The average price for molybdenum reached $16.23 per lb in the January-June 2011 period, up from $14.61 per lb in H1 last year. Molymet’s consolidated sales revenues increased by 11% to $684.5 million. The company’s earnings before interest, tax, depreciation and amortisation (Ebitda) went up by 22.7% to $95.7 million.

China’s nickel ore import price fell last week for the first time in at least two weeks, amid a serious glut in port stockpiles and a weaker nickel price on the London Metal Exchange. Importers were selling nickel ore at 1.8% nickel content for 740 yuan ($116) per tonne on August 22, compared with 760-780 yuan per tonne last week. “Trading volume is very small, as downstream users are not willing to buy,” a nickel ore importer in Lianyungang port said. Chinese ports are already overloaded with nickel ore after inbound volumes surged in recent months. Imports hit a fresh record high of 4.63 million tonnes in July, according to customs figures released on August 22.

Slow market Economic uncertainty affects long-term deals in the FeMo market

Scrap and secondary


ShanghaiTwo-thirds of China’s lead recyclers may face closure under Beijing’s proposal to set minimum capacities for recycling facilities.

The proposal is to set minimum capacities of 30,000 tpy for existing lead recyclers and 50,000 tpy for new facilities, according to the ministry of industry and information technology.

The measures are part of plans to raise the sector’s environmental friendliness. The ministry solicited public opinion on the measures until August 26.

Lead output could be seriously affected, Li Shilong, vice-chairman of the Recycling Branch of China Nonferrous Metals Industry Assn (CNIA), said. Only 100 out of the 280 dedicated lead recyclers are bigger than 30,000 tpy, he estimated.

“This will certainly affect general lead output. That’s why we are now relatively positive about the

Chinese lead recyclers braced for tougher capacity regime

heavy pressure Two-thirds of recyclers could close – if crackdown is enforced

outlook for lead,” a Shanghai-based analyst said.

Recycled lead accounted for about 30% of China’s lead output last year, with most recyclers located in Hebei, Hunan, Anhui and Jiangsu provinces.

The Chinese government plans to increase the ratio to 40% by 2015.

The country’s recycled lead output has risen rapidly over the

past decade, growing at an average of 19.7% per year.

In 2010, 1.37 million tonnes of recycled lead was produced, up from 270,000 tonnes in 2001, the CNIA said.

But in the first half of this year, recycled lead output fell by 200,000 tonnes year-on-year as lead pollution scandals triggered a government clampdown, Li Shilong said.

Some are sceptical about the effectiveness of the proposed measures. “The rules look very strict but are dependent on support from local governments, especially in central and western China, where they are eager to boost the local economy,” a second Shanghai-based analyst said.

Recycled lead output might not fall dramatically either as smaller recyclers could simply expand to meet the minimum capacity, the analyst added.

Turkish mills continued to buy ferrous scrap last week following around ten purchases the previous week.

Buyers mostly targeted lower-grade European scrap supplies, instead of the higher-grade US cargoes they have previously booked.

This tactic meant that mainstream prices for scrap did not push up and that the gulf between higher-grade material and lower-grade supplies widened further.

At the start of the week, one mill in the south of the country booked a 20,000-tonne cargo of HMS 1&2 (80:20) from the UK at $451 per tonne cfr Izmir.

This purchase was followed by a second mill making a booking for a mixed cargo of HMS 1&2 (70:30) and HMS 1 at $439 per

Spotlight Turkish mills stock up by switching to lower grades tonne cfr and $474 per tonne cfr Iskenderun, respectively.

Another two mills purchased cargoes of HMS 1&2 (70:30) from a different European supplier at $435 per tonne cfr.

A fourth buyer purchased shredded material at $470 per tonne cfr Kocaeli from a supplier based in the USA; however, this transaction was for a small tonnage of material, according to merchants.

A fifth mill also secured a mixed cargo of HMS 1&2 (80:20), shredded and P&S from the USA at $470, $475 and $480 per tonne cfr Samsun, respectively.

Lower-grade material has recently been out of favour with many Turkish mills, one merchant said, which he said accounted for the low prices being paid for HMS 1&2 (70:30).

london

indian shredded ferrous falls again on low level of enquiriesPrices for shredded ferrous scrap imported into India fell again last week as buying interest thinned, merchants told MB.

Mainstream deals were agreed at $495-500 per tonne cfr Nhava Sheva/Chennai for shredded material in containers, down from $502-505 cfr a week previously.

HMS 1&2 (80:20) has been sold at $475-490 per tonne cfr Nhava Sheva/Chennai depending on origin, widening from $475-480 cfr the previous week.

One merchant was able to tie up deals for 500 tonnes of shredded material from South Africa at $502-505 cfr last week. However, most merchants have had to settle for lower prices.

The market is slow and only mills that have run down stocks are willing to buy at the moment, a trader said.

One mill source who bought shredded material ten days ago at $510 cfr Nhava Sheva was hopeful that prices would strengthen shortly with increased competition for supply from Turkey after Ramadan.

tokyo

Japanese scrap prices fall again as tokyo Steel cuts purchase pricesJapanese domestic scrap prices are likely to continue their decline after Tokyo Steel slashed its purchase prices again, with other mills expected to follow.

After a two-week hiatus, Japan’s largest EAF operator and effective benchmark price-setter has reduced the price it will pay for scrap delivered to three of its works – Okayama, Takamatsu and Tahara – by a further ¥500 ($7) per tonne.

The latest cuts mean it is now paying ¥34,500 per tonne for land deliveries and ¥35,000 per tonne for seaborne deliveries to Tahara; ¥35,000 per tonne for deliveries to its Kyushu plant; ¥35,000 for shipments to Okayama; ¥33,000 for deliveries to its Takamatsu plant; and ¥34,500 for those to its main Utsunomiya works.

Lead: environmental concerns

Those offering higher-grade scrap will still be able to achieve at least $470 cfr for shredded material, merchants agreed.

A second merchant from Europe commented that the prices being paid by mills for tonnages from the USA were overinflated and that prices had to come down, to fall into line with prices paid for European material.

Most merchants still expect stable prices for ferrous scrap in the near term, with many hopeful of levels ticking upwards in September.

A mill source agreed with these expectations, saying Turkish buyers would need to purchase at least 45-50 cargoes over the course of September to fill their production needs.

“It could rise to around 65 cargoes,” the mill source added.

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Iron and steel


London By VaLerIe FLynnIndustry confidence in the London Metal Exchange’s steel billet contract has been shaken by the cancellation last week of warrants covering 84% of the stock at approved warehouses.

However, the LME maintains that its lending guidelines and steel billet contract are working effectively.

“The market is working as it should. The physical delivery mechanism of the exchange is holding up well,” Chris Evans,the LME’s head of business development, told MB.

“Market participants are free to deliver steel on the market at any time, and they are able to take material at any time. It’s a testament to the regulatory processes that the market feels able to make and take deliveries of LME billet,” he added.

On August 24, cancelled tonnages made up 84% of the LME’s total billet stock of 54,015 tonnes,

Warrants cancelled but billet contract ‘is working’, LMe says

leaving 8,645 tonnes on warrant. Asked whether he expected the

cancelled tonnages to be put back on warrant, Evans said that only happened “sometimes”.

“Sometimes those warrants are put back into the system. The lending guidelines prevent participants from cancelling warrants and re-warranting as a way of getting around the lending guidelines. That might prevent redelivery,” he said.

“In terms of warrant cancellations, it could be that holders have customers they are planning to ship to. They might do [that]. That would be a plausible explanation,” he added.

The large increase in the cash price for billet on the LME in recent days will probably encourage producers to deliver material, thereby increasing stocks, Evans suggested.

The official cash price increased by $20 day-on-day on August 24 to $680/690, from $660/680, a level broadly in line with physical prices.

The cash price on August 24 had climbed from a level of $614.50/615 in the previous week.

“Delivery in and out of metal is a natural part of any market, and particularly the LME market, and it’s that flow of metal that helps ensure prices converge between futures and physical. That indeed is what we’re seeing,” Evans said.

“With the cash price where it is, it represents an opportunity for some of the market to deliver [in], so I guess people will be expecting to see signs of that over the next few weeks,” he added.

On August 24, 650 tonnes were delivered in and 975 tonnes

delivered out, leaving total stock down 325 tonnes day-on-day. On August 23, 1,040 tonnes were delivered out and nothing was delivered in. On August 22, 845 tonnes were delivered out and nothing was delivered in, according to LME data.

The spike in cancelled warrants in recent days came after a dominant position took hold of the market earlier this month.

“There was a dominant position, but we have rules in place to handle these situations,” Evans said.

According to the LME’s guidelines, if a member or client holds 50% or more of the warrants and/or cash positions in relation to stocks, they must lend back to the market – if asked – at a premium of no more than 0.5% of that day’s cash price. This premium decreases on a sliding scale as the dominant position grows.

Evans confirmed that these rules had been invoked earlier this month.

Billet Confidence shaken after dominant position took hold of market

1 Traders expect further Fe scrap deals into Turkey

2 BHP net profit surges 86% to record $23bn

3 Bluescope will close BF and cease exports after $1bn loss

4 Steel reeling from LME billet warrant cancellation

5 China imports of iron ore, coking coal, scrap jump

6 Spot iron ore price tightens to $185-186 cfr

7 German police raid homes of former steel executives

8 Steel production up 11.5% year-on-year in July

9 Iranian consumers go to Russia for billet buying spree

10 UAE rebar stockists return to Turkish rebar market

Most read steel stories for the week ending August 26. See www.metalbulletin.com

Most read on the WeB

MarketsChina Steel raises prices 13

WorLdGlencore H1 iron ore sales fall 14

In thIs sectIon

“It’s a testament to the regulatory processes that the market feels able to make and take deliveries of LME billet” Chris Evans, LME head of business development

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Iron and steel

Markets

ShanghaIChina Steel raised its ex-works prices for the first time in three months last week on

higher export prices and domestic sales.

Taiwan’s largest steelmaker pushed up prices by an average of 1% for October and November shipment to reflect the improved market.

“Steel mills are facing a season of high demand for September and October, so a price rise is expected,” a China Steel representative said, adding the company had followed

China Steel raises prices for October, november shipment

Taiwan rising Season of high demand makes rises ‘expected’, steelmaker says

rises by other major producers. The company had previously

lowered prices for July, August and September shipment.

Taiwan’s steel mills, which tend to focus on exports, have benefited from the strong international

market that has seen hot rolled coil prices rise by $20-30 per tonne in the past month.

China Steel raised its average hot-rolled coil price to NT$22,487 ($779) per tonne, up by NT$489.

It also increased its cold rolled coil and hot dipped galvanized coil prices by NT$307 and NT$463 per tonne respectively, but kept prices of electro-galv and bars flat.

The mill could have raised prices by more, the representative said, but chose to push through smaller increases to support end users and re-rollers, as they are still facing some uncertainties.

ShanghaI

South Korea-Japan remain in talks over Q3 ship-plate Japan’s ship-plate suppliers have yet to agree third-quarter contracts with their South Korean clients, who have adequate stocks and the option of sourcing cheaper material from China, trading sources said.

The contract is likely to be in the range of $900-950 per tonne fob, market participants said.

But since South Korean customers are in no hurry to receive material, they are holding off to see if the Japanese suppliers will lower their prices, a purchasing director with Hyundai Heavy Industries (HHI) said.

Japanese exporters also face strong competition from Chinese producers offering material to Korea at much lower prices of $760-880 per tonne.

However, since Japanese suppliers offer Korean clients the option of setting the price after the material is shipped, as well as allowing large Korean shipbuilders to adjust the purchase volume every month, it gives them a certain advantage, the purchasing director said.

South Korean shipbuilders have established strategic ties with both Japanese and Chinese steel mills to secure supply at competitive prices, despite the fact that local producers have sufficient capacity.

Among Chinese plate mills, Baosteel’s ship-plate is most favoured by South Korean users as it is comparable to Japanese ship-plate in terms of quality, Korean market participants said.

Baosteel’s ship-plate export offers were at $880-900 per tonne fob last week, an export source with the mill said, adding that they settled at $860 per tonne fob for the second quarter.

Japanese producers, who have seen an improvement in the domestic market, have found it hard to increase their overseas sales, despite strong international demand.

“There are plenty of plate offers from mills in both China and South Korea, so it is not easy for us to secure a large quantity of export tonnages,” a JFE Steel representative told MB.

Third-quarter contract prices have previously been settled by early September, the representative said, although he declined to comment further on the negotiations.

LOndOn

Sales to Balkans let MMK achieve Black Sea export price hikes

Russia’s Magnitogorsk Iron & Steel (MMK) has achieved sought-after price increases on its

hot rolled coil exports, with the sale of flat rolled products into Europe’s Balkan region, market participants told MB.

The mill sold hot rolled coil into Macedonia at $710 per tonne fob Black Sea, within the price range that the mill announced earlier this month for September rolling, sources said.

This was $15-20 higher than the $690-695 at which it sold out its August rolling in July, the sources added.

Rising raw material costs and lower stock levels held by end users prompted MMK to seek the increases for September rolling.

The small volumes sold into Macedonia compared with the larger tonnages MMK sold into Iran at $705 per tonne fob from the Caspian Sea port of Astrakhan, one trader said.

LOndOn

ESI keeps domestic rebar prices unchanged for second month

Abu Dhabi’s Emirates Steel Industries (ESI) has held domestic rebar prices steady for

the second month running to attract sales from local consumers.

Rebar has been changing hands at 2,760 dirhams ($751) for September production, unchanged from deals completed in August, according to market participants in the UAE.

Ramadan has slowed down bookings in the local market and consumption levels have fallen, MB was told.

The few buyers who have been in the market have been purchasing small amounts to serve their immediate requirements.

“Emirates Steel Industries has kept its rebar prices stable,” a trader in Dubai said. “It’s Ramadan, so demand has slowed down.”

LOndOn

hRC prices in Middle East soften, demand remains low

Lower prices were offered for hot rolled coil (HRC) in the Middle East last week in a bid

to tempt buyers into the market, MB heard.

HRC from Korea and Japan was offered at $720-730 per tonne cfr Persian Gulf for October delivery and from Ukraine at $700-720 per tonne cfr.

This compared with offers heard the week before for Indian and Chinese material at $735-750 per tonne cfr and Korean material at $760 cfr.

Meanwhile, traders were offering HRC for sale on the spot market at $730 per tonne cfr, MB heard. The last deals reported were at $725-730 per tonne cfr at the end of July.

MB has heard a mixed bag of predictions for the market’s direction in September.

“It’s not going up because steel is in oversupply and the integrated mills are making big money. There is no reason for prices to go up; demand is not that strong,” a source at a service centre said.

pCoil: strong international market

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SingaporeVietnam’s mills have started exporting billet after cutting rebar and wire rod output

because of lower domestic demand.All billet output in Vietnam is

normally fed straight into the mills’ own finished product lines, and billet is sometimes imported to cover a domestic shortfall of supply.

“But Weak demand for final products has made mills cut production for rebar and wire rod,” an official at a major mill said. “The mills have extra to sell, and they have started to export this billet in [recent] weeks.”

Mills in northern provinces have been sending billet to Thailand and Cambodia for $675-780 per tonne delivered.

“Malaysian mills are still pushing billet at $680-685 per tonne fob or $690-695 per tonne cfr, so the Vietnamese billet is competitive,” another mill official said.

Vietnam’s mills export billet on weak domestic demand

Slowdown Thailand and Cambodia take up surplus stock at undercut rates

This is not the first time Vietnamese mills have exported their billet amid a slowdown in domestic demand for long products.

“When the market was weak in 2009, they also exported their billet,” the first official said.

“The mills have to keep producing because shutdown costs are expensive, so they need to sell their billet outside Vietnam,” he said.

Billet offers into Southeast Asia from Taiwan, South Korea and the Middle East were in the range of

$690-710 per tonne cfr last week, unchanged from the week before, mill and trading sources said.

Bookings in Indonesia, the Philippines and Malaysia were between $685-690 per tonne cfr, also unchanged.

“Offers are still very firm, because scrap prices have not fallen either,” a trader in Singapore said.

Offers of HMS 1&2 (80:20 mix) in containers from Europe, the USA and the Middle East were at $480-490 per tonne cfr two weeks ago, unchanged from the previous week.

Most sources were pessimistic that the recent rise in prices was sustainable. “People are restocking now. Prices may fall in the next week or so after restocking is done, and Indonesia and Malaysia go on holiday,” a mill official in Indonesia said.

Most of Indonesia and Malaysia will close for at least 10 days from August 26 to celebrate the end of Ramadan.

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Malaysian mills cut rebar prices by $17-34 per tonne

Malaysian mills have cut rebar prices by 50-100 ringgit ($17-34) per tonne in recent

weeks on slow demand and cheaper imports.

Mills were offering rebar at 2,300-2,350 ringgit per tonne last week, down from 2,400 ringgit per tonne the week before, and from 2,450 ringgit per tonne a month ago, mill and trading sources said.

“Demand is quietening down ahead of next week’s Hari Raya holiday. There is not much activity in the market,” a Singapore-based trader with operations in Malaysia said last week.

“We also heard that there were imports coming in from a stockist based in Singapore selling at 2,300 ringgit per tonne. Some mills are trying to match these lower import offers,” a mill official in Malaysia said.

Mills may cut prices further if demand remains slow, officials say.

“Future price cuts are possible. But billet costs are still very firm. We hope we don’t have to cut again,” another mill official said.

London

Heavy plate prices flat in northern and southern eU

Heavy plate prices in Europe were unchanged last week, with traders looking to the fourth

quarter for market direction. Prices for commodity-grade

heavy plate remained at €650-660 ($937-952) per tonne ex-works in northern Europe. Some deals have been done at this level in August.

The German market was quiet because many customers bought material earlier in the summer and did not need to re-enter the market.

Southern European prices were lower than those in northern Europe, at €610-620 per tonne exw in the domestic market, with similar offers available on imported material. However, buyers needed to order large

tonnages to secure such low prices, one trader said.

One European trader was offering his Indian material to Spain at €620 per tonne delivered.

Commodity-grade plate has been bought into Europe from Asia at prices less than €600 per tonne cif this month, traders in northern and southern Europe confirmed.

Market participants did not expect demand for commodity-grade plate to improve immediately the holidays end in August.

“I don’t think September will be a great month. Customers still have some stocks and they can wait a couple of weeks. Maybe in the second half of September, and into October, demand will be better,” one trader said.

Most of Italy is on holiday for August so no new deals or offers have been heard there, following offers of €610-620 exw earlier this month.

London

iranian consumers go to russia for billet buying spree

Iranian billet consumers returned to the Russian market in a flurry of buying to

replenish stocks for September rolling, MB was told.

About 100,000 tonnes of billet was purchased by consumers in Iran two weeks ago because of shortages in the domestic market and strong demand for long products, supported by a construction boom.

“The Middle East is not buying a lot of billet, apart from Iran, which took 100,000 tonnes from Russian mills in one week for September delivery,” one trader said.

Billet has been sold at $680-690 per tonne fob Caspian Sea for September production and shipment.

London

european producers cut september surcharge for stainless Cr sheet

ThyssenKrupp and Outokumpu have lowered their alloy surcharges for cold

rolled sheet for September production, the steelmakers said.

The downward move comes on instability in the metals and stock markets over the past few weeks, which saw three-month LME nickel officials fall to $21,025-21,030 on August 23, down from $25,125-25,135 per tonne on August 1.

ThyssenKrupp will charge €1,581 ($2,280) per tonne for material produced in September, down from €1,624 for August production.

Outokumpu dropped its surcharge to €1,564 per tonne for September rolling, compared with €1,612 for production in August.

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Iron and steel


World news

AustraliaAnglo-Australian mining major BHP Billiton has posted a record net profit of $23.65 billion for the financial year ended June 30 2011, up 85.9%, on the back of robust demand from China. However, tight labour and raw material markets, as well as the weakness of the US dollar continued to put pressure on the bottom line, BHP said in its results statement dated August 24.“Robust demand, industry-wide cost pressures and persistent supply-side constraints continued to support the fundamentals for the majority of BHP Billiton’s core commodities,” the miner said. However, “tight labour and raw material markets are presenting a challenge for all operators, and BHP Billiton is not immune from that trend. The devaluation of the US dollar and inflation reduced underlying ebit by a further $3.2 billion”, it added. The company’s full-year revenue also rose 35.9% to $71.74 billion.

BHP Billiton upped earnings from its iron ore operations to $13.3 billion in the financial year ended June 30 2011, the miner said in its results statement on August 24. The miner saw its iron ore operation’s underlying earnings before interest and tax (Ebit) increase by 122% in the financial year 2011. BHP said that the increase in earnings was driven by record levels of production and high iron ore prices. Shipments of iron ore from the miner’s Western Australian operations rose to a record rate of 155 million tonnes per year in the June quarter of 2011.

BHP Billiton has seen a 13% year-on-year drop in coking coal production, the miner said in a statement accompanying its results for the 12 months ending June 30 2011. “The remnant effects of wet weather that persisted for much of the 2011 financial year continued to restrict our Queensland business, despite an unrelenting focus on recovery efforts,” the miner said. Floods in Queensland, Australia, in late 2010 and early 2011, severely affected coal production at BHP’s operations. Despite production restrictions, BHP’s metallurgical

coal arm saw underlying earnings before interest and tax (Ebit) in the period climb $617 million to total $2.7 billion. The miner said that the 30% increase in earnings was due to an almost 50% price rises for both hard and soft coking coal, with stronger prices responsible for $2.1 billion of the increase in Ebit.

CISA team of specialists from Ukraine’s Metinvest has entered the Zaporizhstal steelworks to inspect the plant and see how to integrate it more closely within the metals and mining group, a source close to the situation told MB. The team arrived at the plant about two weeks ago to examine Zaporizhstal’s operations as well as its processes in sales, purchasing and investment, the source said. Conclusions from the preliminary inspections have not yet been announced. They will probably come out over the next few months, the source said.

Novolipetsk Steel’s (NLMK) iron ore producer Stoilensky GOK has signed an agreement with a German-Finnish consortium for the design and delivery of a

pelletizing plant. The plant will produce up to 6 million tpy of pellet and is part of NLMK’s strategy to increase vertical integration within the group. Completion of the pelletizer is set for 2014, and it will be able to provide 100% of NLMK’s pellet capacity the following year, according to the company. This will include pellet production to feed the planned 3.4 million-tpy blast furnace No. 7 at NLMK’s Lipetsk site, the group said. German company Siemens VAI and Finland’s Outotec will provide and deliver equipment for the new pelletizer, NLMK said.NLMK approved plans in February to build the pelletizer at Stoilensky GOK, which is in Russia’s Belgorod region.

EuropeTata Steel’s new steel tube manufacturing and processing facility at its Zwijndrecht plant in the Netherlands will be operational by July 2012, the company said. The €3 million ($4.3 million) project will comprise a heat treatment facility for the production of normalised precision tubes and a cut-to-length line. The tubes will be supplied to the automotive sector,

the md of Tata’s tube business in Europe, Remco Blaauw, said. Steel for processing at the new facility will come from Tata’s plants in IJmuiden in the Netherlands and Port Talbot in Wales.

Switzerland-based steel company Schmolz & Bickenbach has reported a 95% surge in its Ebitda for the first half of 2011. Announcing earnings before interest, tax, depreciation and amortisation (Ebitda) of €199 million ($288 million) in its results statement on August 24, up from €102 million in the first half of 2010, the comany attributed the improvement to high capacity utilisation and increases demand. “Capacity utilisation in the production and processing plants as well as in the distribution companies remains high. The efficiency improvement measures that were initiated in previous years are having positive effects,” the company said. Schmolz & Bickenbach said that the first half of 2011 was characterised by strong demand for special steel products and automotive parts and components. It also saw positive developments in machinery construction, hydraulics, and energy exploitation and generation sales. This led to all of the company’s plants running at full capacity. As in 2010, demand in all market segments increased, resulting in more orders, larger backlogs and higher production volumes, the company said.

Middle EastOman-based steelmaker Jindal Shadeed has secured a loan of $475 million from several leading banks to fund its expansion plans. The five-year loan will be used to finance billet production at its facility in Sohar. The company raised the loan from Standard Chartered, DBS, Citibank, Bank of Tokyo-Mitsubishi, Mizuho, Barclays, RBS, ANZ, Credit Agricole and JP Morgan. Jindal Shadeed has the capacity to produce 1.5 million tpy of hot briquetted iron (HBI), which goes to long product producers in the Middle East and North Africa (Mena). The company plans to increase billet production to 3.5 million tpy subject to access to natural gas supplies.

Switzerland-based trading house Glencore saw volumes of iron ore marketed and sold in the first half of 2011 drop by 29% year-on-year, mainly because of the reduced availability of spot cargoes from Brazil and Australia. One contributing factor for the decline in sales volumes was the export ban on iron ore in the state of Karnataka, India, which pushed prices higher. The company reported in its first-half 2011 results on August 25 that it sold and marketed 2.9 million tonnes of iron ore in the first six months, down 1.2 million tonnes from 4.1 million tonnes in the first half of 2010. “We didn’t increase [iron ore] volumes in the first half of 2011 as much as we would have liked,” Glencore chief executive Ivan Glasenberg told press and analysts last week.

Iron and steel


Numbers: data provided by ISSB (further details available at www.issb.co.uk)

Numbers

Japan: Trade In STeel MIll producTS (SeMIS, long & FlaT producTS, Tube)

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Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q12007 2008 2009 2010 2011

Exports Imports

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Japan’s steel exports of 10.0 million tonnes in the second quarter of yy2011 were just 9% down on the first quarter, despite the March 11 tsunami

Half-year exports wereyy down only 2% on 2010 to 21.1 million tonnes

Japan remains the yy world’s second-largest steel exporter after China (Jan-Jun 2011: 22.2 million tonnes)

Half-year exports to South Korea are yy down 13% to 5.0 million tonnes from the same period in 2010. Exports to other Asian markets are unchanged at 12.3 million tonnes

Half-year exports to non-Asian countries were up 11% to 3.8 million yytonnes from the same period in 2010, including a 32% rise to Nafta countries on the back of a 52% rise in shipments to the USA

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AfricaSouth &CentralAmerica

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Japan’s H1 steel exports by destination (2009-2011)

*Other Asia is: Afghanistan, Bangladesh, Brunei, Burma, Hong Kong, India, Indonesia, Kampuchea, Laos, Macao, Malaysia, Maldives, Mongolia, Nepal, Pakistan, Philippines, Singapore and Sri Lanka

*

Hemant Nerurkar, managing director of Tata Steel, agrees that interest rate hikes prompted by inflation running close to 10% remain a point of concern. “But the situation does not look alarming to me. I’m hoping that a good monsoon – the country so far has received good rains – moderation in oil prices and a government determined not to let the situation spin out of control will see the country’s GDP growing 8%-9% this year.”

“Steel demand at our stage of development will rise at a rate faster than GDP growth. I therefore think that in spite of blips in industrial growth and a setback in auto sales in the first quarter, we will be seeing Indian steel use climbing 11% this year,” Nerurkar adds.

C.S. Verma, chairman of the majority state-owned Steel Authority of India Limited (Sail), comments: “This being the final

year of the country’s 11th five-year plan, the government will be keen that investments in infrastructure-related projects in particular are speeded up to fulfil plan targets. That will generate a lot of demand for steel.”

Double digit hopes“We are in the midst of the monsoon, a lean period for construction work. I’m confident that the second half of 2011-12 will bring good news for steel in India,” Verma notes. He hopes that Indian steel consumption will grow at a double digit rate this year and beyond, but as things are shaping up, it is unlikely that the World Steel Association projection of 13% growth in Indian steel demand in 2011 and 14% in 2012 will be achieved.

While Verma may prove right about demand for steel in

construction and housebuilding picking up in the second half, industry officials are worried about the growing size of inventories of auto-grade steel and the flat-rolled products used for consumer durables. Demand for steel remaining subdued, the producers, particularly those without their own iron ore mines, are seeing their margins coming under increasing pressure. This is no time to demand higher steel prices to compensate for cost escalation.

“The problem for us in the industry is that we can’t match the raw material cycle with the prices offered to customers,” says Nerurkar. For companies which make flat products mostly for use in automotive and white goods, the full impact of a combination of reduced demand and uneconomic prices since the beginning of the year will be felt in the second quarter ending September 2011.

But Nerurkar is determined to press ahead with expansion plans in spite of the current situation. “We must not be distracted by temporary hiccups from our goal of building steel capacity at a rapid pace. If this country is to be seen as a reasonably developed economy, then we have to raise our per capita consumption of steel to 200 kg and more from the present low of 50 kg. We are at a stage of development where steel use will grow at 10-12% annually for many years,” he contends.

India, according to Nerurkar, could well be the next hub for ultimately growing steel capacity up to 350 million tpy. According to the steel ministry, local and foreign groups have submitted proposals to various state governments for creating new capacity of close to 300 million tpy. The country produced 66.85 million tonnes of raw steel in 2010, reports the World Steel Association.

Major investment proposals from foreign groups, like Posco and ArcelorMittal, and from Sail, Tata Steel, JSW and Essar in India,

Optimism prevails in slowdown

The Indian steel industry – which is growing at a speed second only to China’s – is fairly unconcerned about domestic demand slowing in recent months in the face of the central bank raising interest rates at regular intervals in attempts to control inflation. The fact is, however, that the rising cost of money is seen as largely responsible for pulling down the country’s industrial growth rate to 5.7% so far this year from 10.7% in 2010-11.

Steelmakers may be putting on a brave face, but the Society of Indian Automobile Manufacturers has warned that annual car sales growth will slip to 10-12% in 2011-12 from close to 30% in the past two years. Pawan Goenka, president of the Society, describes the present times as “tough”. The impressive growth of the Indian auto sector in recent years has encouraged local steelmakers to build automotive-grade flat steel capacity as most of the world’s leading automotive groups have started manufacturing here.

Malay Mukherjee, ceo of Essar Steel, acknowledges the fall in demand for automotive steel in recent months: “The item constitutes less than 10% of the country’s total steel demand and therefore the impact will be marginal on us. We have seen explosive growth in the auto sector for a good number of years but we don’t expect that to continue forever. Even so, the sector will remain a growth driver for the steel industry,” he asserts.

Focus: Indian steel

India’s industrial growth may be slowing, but its ambitious steel sector is confident that demand will remain strong and expansion plans are continuing, reports Kunal Bose

Strong automotive growth has encouraged investment in high-grade flat steel capacity

SAIL


Focus: Indian steeldemonstrate their confidence in the future of the Indian steel market. But the enablers for major capacity creation – particularly for greenfield projects – need to be in place. Groups will build mills in India provided they can get iron ore mines to help absorb market volatility, and also coal deposits if possible.

What is missing at this point is a uniform and transparent policy for allocating mineral resources. Moreover, in a normal situation, it should not take more than a couple of years to open a mine after the grant of a licence. “Sadly, however, because of various obstacles, it is taking us up to eight years to actually start mining,” says Nerurkar.

Land acquisition for big steel projects ranging from 5 million tpy up to 12 million tpy is becoming increasingly contentious, with some high-profile politicians and NGOs becoming involved. Rahul Gandhi, general secretary of the Congress Party and widely seen as successor to prime minister Manmohan Singh, took the industry by surprise when, during a recent visit to Orissa, he said that the poor should not be pushed away to make room for the 12 million tpy Posco mill, coming as it did six years after the project was proposed. “The ideal solution for Posco will be to locate the project to non-agricultural land,” said Gandhi.

Forced to movePosco has also been told by the Karnataka government, under pressure from farmers and local religious leaders, that its proposed 6 million tpy steel project there would be moved from Halligudi in Gadag district to a new site.

Tata Steel, which has placed all the orders for machinery and equipment for its 6 million tpy mill in Kalinganagar, Orissa, has so far acquired 80% of the required 3,500 acres (1,416 ha). While the company is now working to a new schedule for commissioning the first phase of Kalinganagar by 2013-14 and the

second phase in 2015-16, it will finish building an extra 3 million tpy of capacity at the century-old Jamshedpur site to make it a 10 million tpy mill.

“For the Indian steel industry, which all the while has indulged in the luxury of building mills on sprawling campuses, the Jamshedpur unit and the Burnpur mill of Sail in West Bengal stand out as shining examples of optimum use of space,” says an official of the Confederation of Indian Industry. Sail has dismantled a derelict mill at Burnpur to build a new 3 million tpy plant in a 900 acre (364 ha) area. The $3.56 billion Burnpur mill, rising like the proverbial Phoenix from the ashes, will be ready for commissioning in March 2012.

As they expand capacity, a problem faced by all steel

companies is a shortage of trained manpower. Some of the bigger companies have started their own industrial training institutes, as they think it will not be wise to depend on government establishments alone to supply trained personnel.

In addition, the country’s infrastructure in terms of rail, roads and ports, is not ready to allow the planned growth in steel capacity to operate efficiently. It is a daily struggle for the 80 million tpy capacity steel industry to get allotted a sufficient number of rail wagons for moving raw materials from mines and ports to the mills, and then despatching steel products. It is no surprise that Tata Steel has built its own port at Dhamra in Orissa and Essar Steel operates a port at Hazira to support the

operations of its 10 million tpy mill there.

Steel industry officials hope that the allocation of $1 trillion for infrastructure development during the 12th five-year plan (2012-17) will go some way in filling the gaps in infrastructure. P.K. Misra, steel secretary, is expecting the commissioning of some 30 million tonnes of steel capacity in the next two years, largely via the brownfield route, and believes that it will be another five to seven years before some of the announced big steel projects start production.

The government is working on a new steel policy which it hopes will remove the bottlenecks in land acquisition, environmental clearances and mines allocation, and at the same time create conditions for building very big steel mills. “Tata Steel wants to build mills in modules of 6 million tpy each once the policy for big mills is announced,” Nerurkar says.

As attempts are made to get the big steel projects off the ground, India remains a net importer of steel. Last financial year (from April 1 2010), the country imported nearly 6 million tonnes of steel, including some high-technology products like cold-rolled grain-oriented silicon steel in large quantities, and exported over 3 million tonnes (see tables). According to Nerurkar, “India’s net importer status is not going to end a day too soon. But encouragingly, local producers are joining up with leading world steelmakers in order to move up in the value chain.”

For example, Nippon Steel is providing technology to Tata Steel for building a 600,000 tpy continuous annealing and processing line at Jamshedpur. Similarly, Sail, JSW, Essar and Uttam Galva will be acquiring advanced technologies from foreign companies to make the steel grades for which the country remains import dependent.

The author is a specialist writer based in Kolkata


CARBON FINISHED STEEL EXPORTS*Category 2010-11 2009-10 % changeBar and rod 136 212 -35.9Structurals 35 55 -36.4Railway materials 6 0 -Total long 177 267 -33.7Plate 133 66 101.5Hot rolled coil 525 540 -2.8Hot rolled sheet 0 0 0CR sheet/coil 283 345 -18.0Galvanized sheet 1,250 1,287 -2.9Electrical sheet 1 3 -66.7Tinplate 62 75 -17.3Blackplate 0 0 0Tin free steel 0 0 0Large diameter pipe 608 495 22.8Total flat 2,862 2,811 1.8Total carbon steel 3,039 3,078 -1.3*’000 tonnes. Source: Steel Ministry Joint Plant Committee. 2010-11 figures are provisional. Financial year starts April 1

CARBON FINISHED STEEL IMPORTS*Category 2010-11 2009-10 % changeBar and rod 438 590 -25.8Structurals 79 91 13.2Railway materials 12 12 0Total long 529 693 -23.7Plate 764 912 -16.2Hot rolled coil 2,308 2,986 -22.7Hot rolled sheet 67 23 191.3CR sheet/coil 1,126 892 26.2Galvanized sheet 331 292 13.4Electrical sheet 315 282 11.7Tinplate 170 197 -13.7Blackplate 1 1 0Tin free steel 56 34 64.7Large diameter pipe 296 29 920.7Total flat 5,434 5,648 -3.8Total carbon steel 5,963 6,341 -6.0*’000 tonnes. Source: Steel Ministry Joint Plant Committee. 2010-11 figures are provisional. Financial year starts April 1

Pric

es

Daily metal and steelLondon forward

“LME settlement prices. All prices per tonne, unless otherwise stated, in LME warehouse, EU duty, if any paid, for buyers account.”

Year ago Aug 25 Aug 19 Aug 22 Aug 23 Aug 24 Aug 25Aluminium High Grade $2015.00-2016.00 LME Cash official 2308.00-2309.00 2324.50-2325.00 2321.50-2322.00 2321.00-2322.00 2333.00-2334.00 “unofficial” 2331.00-2333.00 2308.00-2309.00 2323.00-2328.00 2324.50-2325.00 2324.00-2329.002012.00-2013.00 LME 3 months official 2345.00-2345.50 2362.00-2363.00 2358.00-2359.00 2359.00-2360.00 2368.50-2369.50 “unofficial” 2365.00-2367.00 2343.00-2344.00 2360.00-2365.00 2362.50-2363.00 2360.00-2365.00 LME Tapo Notional Average Price(NAP) for Aug 2011 2416.20 2410.50 2405.29 2400.67 2397.16 LME stocks (tonnes) 4,662,375 4,654,275 4,646,975 4,654,275 4,649,000Aluminium Alloy (A380.1/DIN226/D12S) $2150.00-2160.00 LME Cash official 2285.00-2290.00 2300.00-2305.00 2260.00-2270.00 2260.00-2261.00 2245.00-2250.00 “unofficial” 2270.00-2280.00 2290.00-2300.00 2270.00-2280.00 2280.00-2290.00 2285.00-2295.002045.00-2055.00 LME 3 months official 2250.00-2255.00 2280.00-2290.00 2260.00-2270.00 2260.00-2270.00 2235.00-2245.00 “unofficial” 2260.00-2270.00 2280.00-2290.00 2260.00-2270.00 2270.00-2280.00 2275.00-2285.00 LME stocks (tonnes) 128,000 131,060 130,840 130,740 130,660N. American Special Aluminium Alloy1995.00-2000.00 LME Cash official 2340.00-2341.00 2350.00-2351.00 2354.00-2355.00 2360.00-2361.00 2360.00-2365.00 “unofficial” 2340.00-2350.00 2360.00-2370.00 2350.00-2360.00 2355.00-2365.00 2360.00-2370.002010.00-2015.00 LME 3 months official 2370.00-2380.00 2390.00-2400.00 2380.00-2390.00 2385.00-2395.00 2404.00-2404.50 “unofficial” 2370.00-2380.00 2390.00-2400.00 2380.00-2390.00 2385.00-2395.00 2390.00-2400.00 LME Stocks (tonnes) 152,620 152,080 151,880 151,680 151,480Copper Grade A$7066.00-7067.00 LME Cash official 8781.00-8781.50 8811.00-8811.50 8858.00-8858.50 8831.00-8832.00 8907.00-8907.50 “unofficial” 8825.00-8835.00 8729.00-8734.00 8815.00-8820.00 8845.00-8855.00 8969.50-8974.507094.50-7095.00 LME 3 months official 8805.00-8806.00 8830.00-8831.00 8875.00-8876.00 8854.00-8855.00 8924.00-8925.00 “unofficial” 8845.00-8855.00 8750.00-8755.00 8835.00-8840.00 8865.00-8875.00 8985.00-8990.00 LME Tapo Notional Average Price(NAP) for Aug 2011 9072.23 9055.94 9044.32 9032.53 9025.95 LME stocks (tonnes) 466,300 465,025 463,775 463,300 464,925Lead $1936.00-1937.00 LME Cash official 2315.50-2316.00 2295.00-2300.00 2324.00-2324.50 2342.00-2344.00 2399.00-2399.50 “unofficial” 2315.50-2320.50 2282.00-2287.00 2305.00-2310.00 2343.00-2348.00 2389.00-2394.001963.00-1964.00 LME 3 months official 2319.00-2319.50 2296.00-2297.00 2319.00-2320.00 2341.00-2342.00 2391.00-2395.00 “unofficial” 2310.00-2315.00 2280.00-2285.00 2305.00-2310.00 2340.00-2345.00 2385.00-2390.00 LME stocks (tonnes) 316,450 315,750 315,025 314,000 317,200Nickel$20140-20145 LME Cash official 21550-21575 21070-21075 20960-20965 20810-20820 21030-21050 “unofficial” 21210-21260 20780-20810 20715-20765 20915-20940 20915-2096520125-20130 LME 3 months official 21505-21510 21075-21100 21025-21030 20825-20830 21050-21100 “unofficial” 21250-21300 20820-20850 20750-20800 20950-20975 20950-21000 LME stocks (tonnes) 103,362 103,266 103,926 104,010 105,018Tin $20200.00-20250.00 LME Cash official 23150.00-23155.00 23095.00-23100.00 23595.00-23600.00 23220.00-23225.00 23375.00-23400.00 “unofficial” 22825.00-22925.00 22770.00-22820.00 23270.00-23370.00 23170.00-23220.00 23420.00-23470.0020170.00-20175.00 LME 3 months official 23200.00-23225.00 23150.00-23200.00 23635.00-23640.00 23250.00-23300.00 23450.00-23475.00 “unofficial” 22900.00-23000.00 22850.00-22900.00 23350.00-23450.00 23250.00-23300.00 23500.00-23550.00 LME stocks (tonnes) 23,180 22,495 22,430 22,560 22,710Zinc Special High Grade $1941.50-1942.00 LME Cash official 2162.00-2163.00 2140.00-2141.00 2168.00-2169.00 2148.50-2149.00 2181.00-2182.00 “unofficial” 2173.00-2175.00 2128.00-2133.00 2152.00-2157.00 2162.00-2167.00 2174.00-2179.001970.00-1971.00 LME 3 months official 2190.00-2191.00 2168.00-2170.00 2195.50-2196.00 2178.00-2179.00 2214.00-2214.50 “unofficial” 2200.00-2202.00 2155.00-2160.00 2180.00-2185.00 2190.00-2195.00 2200.00-2205.00 LME stocks (tonnes) 871,350 869,325 866,300 863,450 861,400Cobalt min 99.3%37800.00-38100.00 LME Cash official 35600.00-36600.00 32000.00-33000.00 35100.00-36100.00 35100.00-36100.00 35100.00-36100.00 LME 3 months official 35500.00-36500.00 32000.00-33000.00 35000.00-36000.00 35000.00-36000.00 35000.00-36000.00 LME stocks (tonnes) 257 257 257 277 277Molybdenum $34250.00-36250.00 LME Cash official 32000.00-33000.00 35600.00-36600.00 32000.00-33000.00 32000.00-33000.00 32000.00-33000.0034750.00-36750.00 LME 3 months official 32000.00-33000.00 35500.00-36500.00 32000.00-33000.00 32000.00-33000.00 32000.00-33000.00 LME stocks (tonnes) 264 264 264 264 264Steel Billet485.00-495.00 LME Cash Official 610.00-620.00 647.50-648.00 660.00-670.00 680.00-690.00 645.00-665.00 “unofficial” 610.00-620.00 647.50-648.00 660.00-670.00 680.00-690.00 645.00-665.00490.00-500.00 LME 3 months official 560.00-570.00 570.00-580.00 575.00-585.00 575.00-595.00 575.00-585.00 “unofficial” 560.00-570.00 570.00-580.00 575.00-585.00 575.00-595.00 575.00-585.00 LME stocks (tonnes) 56,225 55,380 54,340 54,015 54,015Gold $/troy oz1237.50 London morning 1862.00 1877.75 1886.50 1850.00 1716.501237.50 London afternoon 1848.00 1877.50 1876.00 1770.00 1729.001237.50 Handy/Harman 1848.00 1877.50 1876.00 1770.00 1729.00Silver per troy oz1208.17/1863.00 London Spot pence/cents 2542.70/4198.00 2636.56/4349.00 2594.07/4288.00 2550.30/4208.00 2381.68/3900.001881.50 Handy/Harman cents 4242.80 4382.00 4328.00 4050.00 4017.00Palladium $/troy oz487.00 London morning 747.00 754.00 764.00 762.00 748.00490.50 London afternoon 750.00 756.00 762.00 759.00 746.00Platinum $/troy oz1521.00 London morning 1871.00 1894.00 1899.00 1870.00 1805.001516.00 London afternoon 1855.00 1887.00 1886.00 1865.00 1800.00

DubaiDubai Gold & Commodities Exchange settlement prices. All prices per tonne fca on truck Jebel Ali free zone duty-unpaid customs-cleared Aug 22 Aug 23 Aug 24 Aug 25Rebar $ August delivery 635.00 635.00 635.00 635.00 September delivery 635.00 635.00 635.00 635.00

Kuala Lumpur tin marketYear ago Aug 25 Aug 19 Aug 22 Aug 23 Aug 24 Aug 25Tin $/tonne20,500 23,050 22,800 22,950 23,300 23,100


102Pr

ices


LME & SHFE stocks (tonnes effective 24 August) Note:deliveries in and out for the week Aug 18 - 24

Aluminium Delivered in Delivered out Total Ingots T Bars Sows Ingots T Bars Sows Ingots T Bars SowsAntwerp nil nil nil nil nil nil 35,050 25,050 250Hamburg nil nil nil nil nil nil 23,425 20,075 nilGenoa nil nil nil nil nil nil 13,125 nil nilLeghorn nil nil nil nil nil nil 975 nil 400Trieste nil nil nil 25 nil nil 69,725 70,475 5,325Busan nil nil nil 100 100 nil 35,750 8,750 5,650Gwangyang nil nil nil 3,075 4,075 nil 36,500 18,725 nilIncheon nil nil nil 2,050 nil nil 22,275 2,250 100Johor nil nil nil 4,400 400 1,425 155,150 26,250 84,275Port Klang nil nil nil nil nil nil 20,800 725 3,575Rotterdam nil nil 12,625 25 nil nil 211,225 223,750 62,100Vlissingen 48,275 65,175 nil nil nil nil 337,100 376,025 nilSingapore 1,450 nil nil 575 nil nil 330,200 104,700 124,900Bilbao nil nil nil nil nil nil 16,225 14,725 nilGothenburg nil nil nil nil nil nil nil nil 25Helsingborg nil nil nil nil nil nil nil 12,400 nilHull nil nil nil nil nil nil 3,025 875 nilLiverpool nil nil nil 100 1,800 nil 4,225 950 50,300Tyne & Wear nil nil nil 275 500 nil 12,700 49,150 3,575Baltimore nil nil nil nil 625 750 13,200 215,975 174,725Chicago nil nil nil nil 750 550 500 48,575 24,600Detroit nil nil nil 575 3,225 3,375 28,125 670,350 443,300Long Beach nil nil nil 825 nil 125 7,075 225 350Los Angeles nil nil nil nil nil nil 75 5,975 2,675Mobile nil nil nil 4,875 300 1,375 186,100 2,050 1,325New Orleans nil nil nil 200 nil 75 97,625 30,150 8,425St Louis nil nil nil nil 125 nil nil nil nilToledo nil nil nil nil nil 2,000 1,675 5,225 63,150Total 49,725 65,175 12,625 17,100 11,900 9,675 1,661,850 1,933,400 1,059,025

Al.Alloy (large sows) Delivered in Delivered out Total A380.1 226/DIN D12S/J1S A380.1 226/DIN D12S/J1S A380.1 226/DIN D12S/JSAntwerp nil nil nil nil nil nil nil 720 nilRotterdam nil nil nil nil nil nil 200 1,520 nilVlissingen nil nil nil nil nil nil nil 160 nilSingapore nil nil nil nil nil nil 400 nil nilTotal nil nil nil nil nil nil 600 2,400 nilAlum.alloy Delivered in Delivered out Total A380.1 226/DIN D12S/J1S A380.1 226/DIN D12S/J1S A380.1 226/DIN D12S/JSAntwerp nil nil nil nil 380 nil nil 460 nilBremen nil nil nil nil nil nil nil nil nilHamburg nil nil nil nil nil nil 60 nil nilGenoa nil nil nil nil nil nil 11,720 nil nilTrieste nil nil nil nil nil nil 9,320 640 nilGwangwang nil nil nil nil nil nil nil 200 nilIncheon nil nil nil nil nil nil nil nil nilRotterdam nil nil nil nil 20 nil 860 14,500 nilVlissingen nil nil nil nil nil nil 320 12,640 nilJohor nil nil nil nil nil nil nil 6,000 nilPort Klang nil nil nil nil nil nil nil 200 nilSingapore nil 800 nil nil nil nil 680 23,860 nilBilbao nil nil nil nil nil nil 2,120 nil nilLiverpool nil nil nil nil nil nil 320 nil nilTotal nil 800 nil nil 400 nil 25,400 58,500 nilNickel Delivered in Delivered out Total Cats Pellets Briqs Cats Pellets Briqs Cats Pellets Briqs Singapore nil nil nil nil nil nil 102 nil nilSt Louis nil nil nil nil nil nil nil nil nilTotal nil nil nil nil nil nil 102 nil nil

Nickel full plate cats Delivered Delivered Total In OutHamburg nil nil 1,068Busan nil 300 4,278Gwangyang nil 222 1,512Rotterdam 2,724 1,188 78,360Singapore nil 96 7,380Gothenburg nil nil 1,260Helsingborg nil nil 3,780Hull nil nil 3,384Liverpool nil nil 2,646Tyne & Wear nil nil 240Total 2,724 1,806 103,908Copper Delivered Delivered Total In Out cats cats catsAntwerp nil 25 425Hamburg nil 75 6,900Leghorn nil 300 5,950Trieste nil nil 575Busan nil 375 61,475Gwangyang nil 500 40,700Incheon nil 200 13,325Johor nil nil 3,650Port Klang nil 125 8,200Rotterdam 1,000 375 20,450Vlissingen nil nil nilSingapore nil 175 43,725Bilbao nil nil 1,525Hull nil 200 650Liverpool nil nil 75Baltimore nil nil 675 Chicago 2,475 nil 35,700Mobile nil 425 4,225New Orleans 950 1,025 116,775St Louis nil 300 98,300Total 4,425 4,100 463,300Cobalt Delivered Delivered Total In OutRotterdam 20 nil 195Singapore nil nil 47Baltimore nil nil 35Total 20 nil 277Roasted Molybdenum Concentrate RMC Powder Delivered Delivered Total In OutRotterdam nil nil 264Singapore nil nil nilBaltimore nil nil nilTotal nil nil 264

Lead Delivered Delivered Total In OutAntwerp nil nil 4,625Hamburg nil nil 2,500Genoa nil 25 9,000Leghorn nil nil 12,000Johor nil nil 27,700Port Klang 500 1,075 54,775Trieste nil nil 5,800Rotterdam nil nil 14,300Vlissingen nil 25 14,475Singapore 225 4,425 37,100Barcelona 125 nil 16,975Bilbao nil nil 31,175Liverpool nil nil 475Baltimore nil nil 4,300Chicago nil nil 1,125Detroit nil nil 42,025Long Beach 300 nil 30,075Los Angeles 275 nil 4,000Mobile nil nil 875New Orleans nil nil 700Total 1,425 5,550 314,00Zinc Delivered Delivered Total In OutTrieste nil nil 6,550Johor nil 3,400 70,700Port Klang 1,975 525 80,350 Rotterdam nil 150 23,350Vlissingen nil nil 25Singapore nil 150 2,325Dubai nil nil 2,000Bilbao nil nil 600Hull nil nil 3,925Liverpool nil nil 200Balitmore nil nil 9,400Chicago nil 75 30,450Detroit nil nil 88,625Long Beach nil 200 1,025Los Angeles nil nil 300New Orleans nil 6,700 542,625St Louis nil nil 25Toldeo nil nil 975Total 1,975 11,200 863,450Tin Delivered Delivered Total In OutAntwerp nil nil nilBusan nil nil 70Gwangyang nil nil 110Rotterdam nil nil 15Johor 445 900 16,090Singapore 125 345 5,875Baltimore nil nil 400Total 570 1,245 22,560

NASAAC ingots Delivered Delivered Total In OutBaltimore nil 560 9,100Chicago 440 20 8,220Detroit nil nil 14,060Long Beach nil 60 700Mobile nil nil 80New Orleans 100 nil 3,040Owensboro nil nil nilSt Louis nil nil nilTotal 540 640 35,200NASAAC T-Bars Delivered Delivered Total In OutBaltimore nil nil 3,360Chicago nil nil nilDetroit nil nil 4,200Louisville nil nil nilSt Louis nil nil nilTotal nil nil 7,560NASAA large sows Delivered Delivered TotalBaltimore nil nil 3,300Chicago nil nil 160Detroit nil nil nilOwensboro nil nil nilTotal nil nil 3,460NASAA small sows Delivered Delivered Total In OutChicago nil 1,440 67,560Detroit nil nil 24,400Louisville nil nil 1,380Mobile nil nil 1,260New Orleans nil nil 4,000St Louis nil nil 6,860Total nil 1,440 105,460Shanghai Futures Exchange DeliverableAluminium 124,808Copper 102,258Zinc 417,784

Steel Billet Delivered in Delivered out TotalKocaeli nil nil nilTekirdag nil nil 390Johor 650 nil 12,870Rotterdam nil 2,535 13,325Incheon nil nil 130Chicago nil nil 7,280Detroit nil nil 5,915New Orleans 1,040 nil 14,105Total 1,690 2,535 54,015

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Exchange Rates & New York Futures

Non-Ferrous Primary Metals

Aug 24 Aug 26AluminiumLME prices: see Daily MetalEuropean free market: $/tonne in warehousemin 99.7% ingot duty unpaid premium indicator 120-140* 120-140*LME duty-paid Premium Indicator/HG Cash 190-210* 190-210*HG duty-paid three months 190-210* 190-210*Cif Japan: 99.7% duty unpaid premium indicator quarterly 120-121* 120-121*CIS-origin: indicators in warehouse Europe: A7e premium 120-140* 120-140*LME warehouse premium Singapore: 85-90* 85-90*Extrusion billet premium 6063, EC duty paid,in warehouse Rotterdam ($/tonne) 420-450* 420-450*US free market: P1020 US midwestpremium indicator ($/lb) 0.083-0.087* 0.083-0.087*MB Chinese free market,Metallurgical grade, delivered duty paid RMB/tonne 2,800-3,000* 2,800-3,000*Alumina Index fob Australia 369.17Copper & BrassLME: see Daily MetalProducer premium(Codelco): contract2011 Grade A cathode (average) 98-98 98-98MB free market US: High-grade cathodepremium indicator, $/tonne 99.00-121.00* 99.00-121.00*Chinese Grade 1: 110-130* 110-130*Germany: (VDM) Electro, €/tonne wirebar (DEL): 6,193.50-6,216.80 6,193.50-6,216.80cathodes: 6,110.00-6,210.00 6,110.00-6,210.00South Africa: Phalaborwa W/B, Rand/tonne 79,310.15-79,310.15 79,310.15-79,310.15TinKuala Lumpur and LME prices: see Daily MetalMB European free marketSpot premium 99.9% $ per tonne 500-550* 500-550*Spot premium 99.85% $/tonne 430-480* 430-480*MB US free market: Grade A tin premium $/lb 0.29-0.34* 0.29-0.34*

Aug 24 Aug 26NickelLME prices: see Daily MetalEurope: $/tonne in warehouse Rotterdamuncut cathodes premium indicator 100.00-150.00* 100.00-150.00*4x4 cathodes premium indicator 300.00-350.00* 300.00-350.00*briquettes premium indicator 300.00-350.00* 300.00-350.00*US: melting premium indicator $/lb 0.30-0.50* 0.30-0.50*plating premium indicator $/lb 0.65-0.90* 0.65-0.90*LeadLME prices: see Daily MetalGermany: (VDM) virgin soft, €/tonne 1,760.00-1,810.00 1,760.00-1,810.00MB US: High Grade ingot premium indicator, $/lb 0.0700-0.0800* 0.0700-0.0800*MB European free market:in warehouse Rotterdam €/tonne 15-25* 15-25*European Automotive battery premium free market (Eurobat)in warehouse Rotterdam €/tonneSoft lead (average) 157.73-157.73* 157.73-157.73*Ca/Ca grid lead (average) 352.12-352.12* 352.12-352.12*Connector lead (average) 309.77-309.77* 309.77-309.77*European Industrial batterypremium free market (Eurobat)in warehouse Rotterdam €/tonne (average) 101.24-101.24* 101.24-101.24*LME warehouse premium Singapore: 30-40* 30-40*Cif Shanghai premium LME: 100-100* 100-100*Lead concentrates: 70/80% Pb $/tonne T/C, cif. 200-250* 200-250*ZincLME prices: see Daily MetalGermany: (VDM) virgin, €/tonne 1,610-1,650 1,610-1,650UK: ThyssenKrupp Metallurgie GMbHcontract price forAugust 2011Special high grade, £/tonne 1,676.00-1,676.00 1,676.00-1,676.00MB US: Special high grade, $/lb 0.0600-0.0800* 0.0600-0.0800*MB EU: Special high grade, fot Rotterdam, $/tonne 135.00-145.00* 135.00-145.00*LME warehouse premium Singapore: 60-100* 60-100*Cif Shanghai premium LME: 80-80* 80-80*Zinc Concentrates:cif main port $/tonne 250-270* 250-270*

Precious Metals

Base Metals

Aug 24 Aug 26IridiumMB free market: min. 99.9%, $/troy oz in warehouse 1,010-1,060* 1,010-1,060*Johnson Matthey base price: (unfab) $/troy oz (09.00 hrs) 1,050 1,050Engelhard base price: $/troy oz 1,060 1,060PalladiumWorld prices: see Daily MetalEuropean free market: min. 99.9%,$/troy ozin warehouse 755-760* 745-750*Engelhard base price: $/troy oz 765 751Johnson Matthey base price: (unfab) $/troy oz (09.00 hrs) 760 754

Aug 24 Aug 26PlatinumWorld prices: see Daily MetalEuropean free market: min. 99.9%, $/troy ozin warehouse 1,860-1,865* 1,820-1,825*Engelhard base price: $/troy oz 1,892 1,810Johnson Matthey base price: (unfab)$/troy oz (09.00 hrs) 1,872 1,820RhodiumEuropean free market: min. 99.9%, $/troy ozin warehouse 1,825-1,875* 1,825-1,875*Engelhard base price: $/troy oz 1,850 1,875Johnson Matthey base price: (unfab)$/troy oz (09.00 hrs) 1,875 1,875RutheniumEuropean free market: min. 99.9%, $/troy ozin warehouse 140-180* 140-180*Engelhard base price: $/troy oz 175 175Johnson Matthey base price: (unfab) $/troy oz (09.00 hrs) 175 175

Exchange Rates Aug 19 Aug 22 Aug 23 Aug 24 Aug 25LME Settlement Conversion Rates$/£ 1.6522 1.6514 1.6509 1.6469 1.6377$/Yen 76.49 76.75 76.57 76.57 77.15$/€ 1.4378 1.4421 1.4465 1.4436 1.4442Closing Rates, Midpoint$/£ 1.6572 1.6441 1.6494 1.6400 1.6267$/Yen 76.25 76.77 76.51 76.73 77.45$/€ 1.4419 1.4382 1.4391 1.4409 1.4352£/€ 1.1493 1.1432 1.1461 1.1382 1.1334

Standard Bank pricesStandard Bank’s rand fixing prices per tonne for London Metal Exchange trade Aug 19 Aug 22 Aug 23 Aug 24 Aug 25Copper R63,051.17 R63,389.93 R63,550.88 R63,722.88 R64,267.61Aluminium R16,578.62 R16,726.05 R16,658.03 R16,753.23 R16,839.81Lead R16,628.88 R16,546.20 R16,675.96 R16,911.96 R17,312.39Zinc R15,530.34 R15,402.35 R15,560.41 R15,505.04 R15,743.13Nickel R154,908.50 R151,613.55 R150,402.91 R150,216.30 R151,875.75Tin R166,252.90 R161,181.40 R169,306.40 R167,568.38 R168,831.00

New York futuresYear ago Aug 24 Aug 18 Aug 19 Aug 22 Aug 23 Aug 24(Comex) Copper high grade cents/lb326.45 Aug ̀ 11 396.45 398.25 395.60 399.45 399.70138,225 Open Interest 125,937 126,213 128,576 126,380 120,05499,687 Stocks (short tons) 84,628 85,050 85,050 85,582 86,054(Comex) Gold $/troy oz1232.40 Aug ̀ 11 1818.90 1848.90 1888.70 1853.30 1754.10565,828 Open Interest 521,246 521,310 531,724 528,520 519,96010,861,200 Stocks (troy oz) 11,450,884 11,575,304 11,575,175 11,580,175 11,579,242(Nymex) Palladium $/troy oz486.85 Nymex Sett AUG 756.75 748.55 764.85 764.15 742.906,160 Stocks (troy oz) 5,527 5,529 5,529 5,529 5,529(Nymex) Platinum $/troy oz1521.40 Nymex Sett AUG 1847.70 1874.90 1905.70 1880.10 1826.302,631 Stocks (troy oz) 2,443 2,442 2,442 2,442 2,441(Comex) Silver cents/troy oz1858.00 Aug ̀ 11 4068.70 4242.80 4332.10 4228.10 3915.70128,751 Open Interest 116,153 121,950 121,089 122,543 124,826

Shanghai futuresYear ago Aug 25 Aug 19 Aug 22 Aug 23 Aug 24 Aug 25Aluminium yuan/tonne (August delivery)15,110 17,415 17,505 17,520 17,545 17,565Copper yuan/tonne (August delivery)56,940 66,400 66,710 66,490 66,660 66,910Zinc yuan/tonne (August delivery)16,360 16,650 16,750 16,690 16,770 16,890


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NEWFOR 2011

MB Daily Base Metal PremiumsAll prices $/tonne unless otherwise stated, in warehouse price, duty unpaid, spot business, immediate delivery*MB copyright

Aug 19 Aug 22 Aug 23 Aug 24 Aug 25 Low - High Premium Low - High Premium Low - High Premium Low - High Premium Low - High PremiumCopper - Grade A copper cathode to meet LME specifications: BS EN 1978:1998 (Cu-CATH-1)MB Copper Premium Rotterdam 60-85* 80.00* 60-85* 80.00* 60-85* 80.00* 60-85* 80.00* 60-85* 80.00*MB Copper Premium Hamburg 65-80* 76.67* 60-70* 65.00* 60-70* 65.00* 60-70* 65.00* 60-70* 65.00*MB Copper Premium Leghorn 60-75* 65.00* 60-70* 65.00* 60-70* 65.00* 60-70* 65.00* 60-70* 65.00*MB Copper Premium New Orleans 10-10* 10.00* 10-10* 10.00* 10-10* 10.00* 10-10* 10.00* 10-10* 10.00*MB Copper Premium Baltimore 10-10* 10.00* 10-10* 10.00* 10-10* 10.00* 10-10* 10.00* 10-10* 10.00*MB Copper Premium Chicago 10-10* 10.00* 10-10* 10.00* 10-10* 10.00* 10-10* 10.00* 10-10* 10.00*MB Copper Premium Gwangyang 30-40* 35.00* 30-40* 35.00* 50-50* 50.00* 25-50* 37.50* 25-50* 35.00*MB Copper Premium Busan 30-40* 35.00* 30-40* 35.00* 50-50* 50.00* 25-50* 37.50* 25-50* 35.00*MB Copper Premium Singapore 30-40* 35.00* 30-40* 35.00* 50-60* 55.00* 50-55* 52.50* 50-50* 50.00*MB Copper Premium Shanghai 100-130* 110.00* 110-120* 113.33* 110-120* 113.33* 110-130* 120.00* 120-130* 126.67*


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Minor metalsThe specification for all minor metals will be as laid down by the Minor Metals Trade Assn and published on their website (www.mmta.co.uk), unless otherwise indicated.Prices will be basis in warehouse Rotterdam, unless otherwise stated, and will reflect a trading range of business done at the time of the assessment. Aug 24 Aug 26AntimonyMB free marketRegulus, min 99.65%, max Se 50 ppm, max 100 ppm Bi,$/tonne in warehouse Rotterdam 14,500-15,100* 14,500-15,100*MMTA Standard Grade II, $/tonne in warehouse Rotterdam 14,300-14,800 14,300-14,800MB Chinese free marketMMTA Standard Grade II, delivered duty paid RMB/tonne 89,000-91,000* 90,000-91,000*ArsenicMB free market$/lb 0.60-0.65* 0.60-0.65*BismuthMB free market$/lb 12.80-13.20* 12.80-13.20*MB China domestic, min 99.99%, RMB/tonne 180,000-182,000* 180,000-182,000*CadmiumMB free market min 99.95%, cents/Ib 100-120* 100-120*MB free market min. 99.99%, cents/lb 105-125* 105-125*ChromiumMB free marketalumino-thermic, min. 99%, $/tonne 12,500-13,500* 12,500-13,500*western un-degassed AT, min. 99.4%, $/kg d/d 10.25-10.65* 10.25-10.65*CobaltMB free market High Grade, $/Ib 17.00-18.00* 17.00-18.00*MB free market Low Grade, $/lb 16.00-16.50* 15.80-16.50*MB China domestic, min 99.8% RMB/tonne 275,000-282,000* 272,000-282,000*MB Chinese free marketConcentrate min 8% cif main Chinese ports $/lb 12.50-12.80* 12.50-12.80*GalliumMB free market $/kg 820-890* 780-850*MB China domestic, min 99.99%, RMB/kg 5,050-5,150* 4,900-5,100*GermaniumGermanium dioxide MB free market $/kg 1,300-1,400* 1,300-1,400*Germanium metal $/kg Rotterdam 1,550-1,650* 1,550-1,650*Germanium metal MB China domestic, min 99.999%, RMB/kg 10,000-10,300* 9,900-10,300*Germanium dioxide, China domestic min 99.999%, RMB/kg 8,350-8,450* 8,300-8,400*IndiumMB free market $/kg 760-810* 750-800*

Aug 24 Aug 26Indium cont.MB Chinese free marketCrude min 98% duty paid in w/house China RMB/kg 4,650-4,750* 4,550-4,700*MB China domestic, min 99.99% RMB/kg 4,950-5,050* 4,900-4,950*Indium Corp ingots min. 99.97%, $/kg fob 785-785 785-785MagnesiumEuropean free market $ per tonne 3,100-3,200* 3,100-3,200*China free marketmin 99.8% Mg, fob China main ports, $ per tonne 3,200-3,300* 3,200-3,300*MB Chinese free market min 99% Mg, ex-works RMB/tonne 17,500-18,000* 17,500-18,000*Manganese FlakeMB free market $/tonne 3,350-3,400* 3,350-3,400*MercuryMB free market $ per flask 2,000-2,200* 2,000-2,200*Rhenium in warehouse Rotterdam duty paidMetal Pellets, min 99.9% $/lb 2,100-2,300* 2,100-2,300*APR catalytic grade $/kg Re 4,400-4,800* 4,400-4,800*SeleniumMB free market $/lb 52.00-62.00* 52.00-62.00*MB China domestic, min 99.9%, RMB/kg 1,000.00-1,070.00* 1,000.00-1,070.00*Selenium dioxide, MB China domestic, min 98%, RMB/kg 740.00-760.00* 740.00-760.00*SiliconMB free market €/tonne 2,200-2,400* 2,200-2,400*US free market cents/lb 157-160* 157-160*Hong Kongmin. 98.5%, $/tonne fob main Chinese ports 2,400-2,500* 2,400-2,500*TelluriumMB free market $/kg 310-370* 310-370*MB China domestic, min 99.99%, RMB/kg 2,480-2,530* 2,500-2,550*TitaniumMB free market ferro-titanium70% (max 4.5% Al), $/kg Ti d/d Europe 9.00-9.20* 8.90-9.20*Titanium Ores $/tonne Rutile conc min. 95% TiO2 bagged, fob/Aus 1,300-1,348 1,300-1,348Rutile bulk conc min. 95% TiO2 fob/Aus 1,000-1,120 1,000-1,120Ilmenite bulk conc min. 54% TiO2 fob/Aus 130-150 130-150

Noble Alloys & Ores Aug 24 Aug 26Lithium OresPetalite, 4.2% Li2O bagged fob Durban, $/tonne 165-260 165-260Spodumene > 7.25% Li2O cif Europe, $/tonne 720-770 720-770MolybdenumMolybdic oxideEuropeDrummed molybdic oxide, $/lb Mo 14.40-14.70* 14.30-14.70*USCanned molybdic oxide, $/lb Mo 14.50-15.15* 14.50-15.15*Ferro-Molybdenumbasis 65-70% Mo, $/kg Mo 36.00-37.00* 35.50-36.50*basis 60% Mo, $/kg Mo, duty unpaid in warehouse Rotterdam 38.00-40.00* 38.00-40.00*US free market, 65-70% Mo, $/lb in warehouse Pittsburgh 16.75-17.00* 16.75-17.00*Hong Kong, min. 60% Mo, $/kg Mo, fob main Chinese ports 40.00-40.00* 40.00-40.00*MB Chinese free marketConcentrate 45% Mo, in warehouse China RMB/mtu 2,030-2,050* 2,030-2,050*UraniumNuexco spot price indicator $/lb U3O8 49.90-49.90 49.90-49.90ZirconFoundry grade bulk, $/tonne fob Australia 2,200-2,400 2,200-2,400Premium bulk, $/tonne fob Australia 2,560-2,640 2,560-2,640

Aug 24 Aug 26TungstenEuropean free marketAPT, $/mtu 455-467* 450-467*US free marketAPT, $/stu 305-309* 305-309*Hong KongAPT Chinese No1, $/mtu fob main Chinese ports 452.00-462.00* 452.00-462.00*MB Chinese free marketConcentrate 65% W03, in warehouse China RMB/tonne 151,000-153,000* 151,000-153,000*Ferro Tungstenbasis 75% W min, $/kg W, in warehouse Rotterdam,duty unpaid 48.80-50.00* 48.80-50.00*Hong Kong, min. 75% W, $/kg W, fob main Chinese ports 53.00-54.00* 53.00-54.00*Tungsten OreMin. 65% WO3 $/mtu WO3 140-160* 140-160*VanadiumFerro vanadium basis 70-80%, $/kg V 28.10-28.80* 27.80-28.70*US free market ferro-vanadium, $/lb, in warehouse Pittsburgh 15.50-16.00* 15.50-16.00*Vanadium pentoxide cif Europe min 98% $ per Ib V2O5 6.10-7.00* 6.10-7.00*Vanadium pentoxide US free market min 98% $ per Ib V2O5 6.50-6.75* 6.50-6.75*

Bulk Alloys Aug 26Ferro-Chrome $/lb CrLumpy Cr charge, basis 52% Cr, (and high carbon) quarterly 1.20-1.20*6-8% C basis 60% Cr, max 1.5% Si 1.13-1.25*European low carbon 0.10% C average 60-70% Cr quarterly 2.25-2.35*0.10% C average 60-70% Cr 2.25-2.35*European low carbon, in warehouse, 0.06% C max - 65%Cr 2.25-2.45*Low phosphorous Cr min 65%, C max 7%, Si max 1%, P max 0.015%, Ti max 0.05% 1.30-1.40*US free market, in warehouse Pittsburgh,6-8% C basis 60-65% Cr, max 2% Si 1.160-1.200*US free market, low carbon, duty paid, fob Pittsburgh,0.05%C - 65% min Cr 2.46-2.55*0.10%C - 62% min Cr 2.23-2.29*0.15%C - 60% min Cr 2.18-2.20*Spot 6-8% C, basis 50% Cr, delivered duty paid China RMB/tonne 8,300-8,400*Contract 6-8% C, basis 50% Cr, delivered duty paid China RMB/tonne 8,250-8,400*Chrome Ore $/tonneChrome ore, cif main Chinese portsSA friable lumpy basis 35-40% 210-250*SA LG6 Met grade basis 42% 230-270*SA UG2 Met grade basis 40% 220-260*Turkish lumpy 40-42% cfr main Chinese ports 310-330*

Aug 26Ferro-Manganesebasis 78% Mn (Scale pro rata), standard 7.5% C, Euro/tonne 880-925*US free market, 78% Mn, standard 7.5% C, $/long ton in warehouse Pittsburgh 1,300-1,360*US free market, medium carbon, duty paid, fob Pittsburgh,80% min Mn, 1.5% max C, $/lb 1.05-1.11*Hong Kong, min. 75% Mn, 7.5% C, fob main Chinese ports 1,480-1,530*MB Chinese free marketmin 65% Mn, max 7.0% C, in warehouse China RMB/tonne 8,000-8,200*Manganese Ore48/50% Mn Max 0.1%P, $/mtu metallurgical Mn, fob 5.30-5.50*Ferro-SiliconLumpy, basis 75% Si (Scale pro rata), Euro/tonne 1,220-1,320*US free market, $/lb in warehouse Pittsburgh:lumpy basis 75% Si imported 1.00-1.05*Hong Kong, min. 75%, fob main Chinese ports 1,510-1,550*MB Chinese free marketmin 75% in warehouse China RMB/tonne 6,750-6,900*Silico-ManganeseLumpy, 65-75% Mn basis, 14-25% Si (Scale pro rata) Euro/tonne 870-920*US free market, $/lb in warehouse Pittsburgh: 0.61-0.63*Hong Kong, min. 65% Mn, max 17% Si,fob main Chinese ports 1,500-1,520*MB Chinese free marketmin 65% Mn max 17% Si,in warehouse China RMB/tonne 9,100-9,400*

l All prices $/tonne, duty paid, delivered consumers’ works, unless otherwise shown. Other currency prices are given where the local markets are dominant or active. Date indicates last price change. These markets last assessed on Aug 26 (UK), Aug 25 (US). l Reminder: prices marked * are MB copyright. These markets were last assessed on Aug 26 (Europe and Asia) and Aug 25 (USA).l All Chinese domestic prices include VAT of 17%

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esWorld SteelEU ImportsMetal Bulletin’s appraisal of cfr prices for imported, non-EU origin, commercial-quality carbon steel, € per tonne cfr main EU port (€/$=0.69).Rebar 540-570 24/08 SepWire rod (mesh quality) 570-580 24/08 SepPlate (8-40mm) 580-600 24/08 OctHot rolled coil 520-530 24/08 OctCold rolled coil 590-610 24/08 OctHot-dip galvanized coil 580-630 24/08 OctEU exportsMetal Bulletin’s appraisal of EU mills’ prices for export outside the EU of commercial-quality carbon steel, $ per tonne fob main EU portRebar 720-730 24/08 SepWire rod (mesh quality) 730-740 24/08 SepEU domesticMetal Bulletin’s appraisal of prices within the EU (excluding the UK) for commercial-quality carbon steel of EU origin, € per tonne delivered basis point (€/$=0.69)Rebar 540-575 24/08 AugWire rod (mesh quality) 570-580 24/08 AugSections (medium) 580-600 24/08 AugPlate(8-40mm) 620-650 24/08 AugHot rolled coil 520-540 24/08 AugCold rolled coil 625-660 24/08 AugHot-dip galvanized coil 590-640 24/08 Aug

CISProduct Price Date MonthCIS Exports (Black Sea)Metal Bulletin’s appraisal of CIS mills’ prices for export outside the CIS of commericial-quality carbon steel, $ per tonne fob stowed main Black Sea port.Billet 680-690 22/08 SepSlab 610-620 22/08 SepRebar 700-710 22/08 SepWire rod (mesh) 720-730 15/08 SepHeavy plate (10-50mm) 755-760 24/08 SepHot rolled coil 700-710 22/08 SepCold rolled coil 815-820 22/08 SepCIS DomesticMetal Bulletin’s appraisal of prices within Russia and Ukraine for commercial-quaility carbon steel of CIS origin, $ per tonne ex-works.Rebar 750-770 22/08 AugHot rolled coil 695-710 22/08 AugCold rolled coil 790-810 22/08 Aug

Middle EastProduct Price Date MonthTurkish ExportsMetal Bulletin’s appraisal of Turkish mills’ prices for export of commercial-quality carbon steel, $ per tonne fob main Turkish port.Billet 690-695 25/08 SepRebar 720-730 25/08 SepWire rod (mesh quality) 740-750 25/08 SepMerchant bars 775-780 18/08 SepTurkish DomesticMetal Bulletin’s appraisal of prices within Turkey for commercial-quailty carbon steel of Turkish origin, $ per tonne ex-works.Billet 695-700 25/08 SepRebar 720-750 25/08 SepWire rod (mesh quality) 750-760 25/08 SepHot rolled coil 730-770 25/08 SepCold rolled coil 870-910 25/08 SepTurkish importsMetal Bulletin’s appraisal of prices for imported commercial-quality carbon steel, $ per tonne cfr main Turkish port.Billet 690-700 25/08 SepHot rolled coil 730-760 25/08 OctCold rolled coil 830-860 25/08 OctGCC country importsMetal Bulletin’s appraisal of prices for imported commercial-quality carbon steel, $ per tonne cfr main Gulf port.Billet 710-720 23/08 OctRebar 720-725 23/08 OctHot rolled coil 700-730 23/08 OctCold rolled coil 790-800 23/08 Oct

Product Price Date MonthIran DomesticMetal Bulletin’s appraisal of prices within Iran for commercial-quality carbon steel of Iranian origin, million rials per tonne delivered warehouse Tehran (m rials/$=10,558).Rebar (12-25)mm) 8.90-9.20 24/08 AugEqual Angles 9.10-9.60 24/08 Augl-beams 9.45-13.30 24/08 AugPlate 9.80-10.00 24/08 AugHot rolled coil 8.90-9.15 24/08 AugCold rolled coil 9.50-10.00 24/08 AugHot-dip galvanized coil 12.40-13.10 24/08 AugHollow sections 10.00-10.20 24/08 AugIran ImportsMetal Bulletin’s appraisal of prices quoted by overseas suppliers for commercial-quality carbon steel to Irainian buyers, $ per tonne cfr Iranian northern portsBillet 700-710 24/08 OctRebar 720-730 24/08 OctEgyptian DomesticMetal Bulletin’s appraisal of prices within Egypt for commercial-quality carbon steel of Egyptian origin, E£ per tonne ex-worksRebar 4,8000 1/08 Aug

South AmericaProduct Price Date MonthSouth American exportsMetal Bulletin’s appraisal of South American mills’ prices for export outside South America of commercial-quality carbon steel, $ per tonne fob stowed main South American port.Billet 690-720 25/08 SepSlab 680-710 12/05 MayRebar 710-750 25/08 SepWire rod mesh quality 750-780 25/08 SepWire rod drawing quality 750-780 25/08 SepMedium plate: 3-10mm 1,000-1,050 28/07 AugHeavy plate: over 10mm 1,000-1,050 28/07 AugHot rolled coil (dry) 760-800 28/07 AugCold rolled coil 880-900 28/07 AugGalvanized coil 900-920 28/07 Aug

NaftaProduct Price Aug 25US ImportsMetal Bulletin’s appraisal of prices for imported, non-Nafta origin, commercial-quality carbon steel, $ per short ton cfr Gulf.Slab 735-760 Rebar 700-715 Merchant bars 700-710 Wire rod (low carbon) 700-750 Medium sections 640-650 Heavy sections (over 24in) 730-740 Medium plate 840-880 Heavy plate 880-960 Hot rolled coil (commodity) 675-700 Cold rolled coil 790-830 Galvanized coil (base US) 950-975 US domesticAMM’s appraisal of prices within the USA for commercial-quality carbon steel of US or Canadian origin, $ per short ton, delivery terms as indicated.Rebar (fob mill) 740Wire rod (mesh quality; delivered) 925Plate (fob mill) 1011Hot rolled coil (fob mill) 685Cold rolled coil (fob mill) 795Hot-dip galv coil (fob mill) 895

AsiaProduct Price Date MonthChina ExportsMetal Bulletin’s appraisal of Chinese mills’’ prices for export of commercial-quality carbon steel, $ per tonne fob main China port.Billet 870-872 26/08 OctRebar 720-730 26/08 OctWire rod (mesh quality) 720-740 26/08 OctHeavy plate 705-715 26/08 OctHot rolled coil 700-710 26/08 OctCold rolled coil 760-770 26/08 OctGalvanized coil 1mm 800-840 26/08 OctChina ImportsMetal Bulletin’s appraisal of prices for imported, non-EU origin, commercial-quality carbon steel, $ per tonne cfr main China port.Cold rolled coil, 1mm & below 800-810 26/08 SepHot dip galvanized coil 830-850 26/08 Sep

Product Price Date MonthEastern China DomesticMetal Bulletin’s appraisal of prices in Eastern China for commercial-quality carbon steel of Chinese origin, yuan per tonne delivered warehouse (yuan/$=6.39)Rebar 4,679-4,950 26/08 AugWire rod (mesh) 4,950-5,010 26/08 AugSections 4,660-4,840 26/08 AugPlate 4,850-4,880 26/08 AugHot rolled coil (min 2mm) 4,790-4,810 26/08 AugCold rolled coil (0.5 - 2mm) 5,410-5,450 26/08 AugHot-dip galvanized coil 5,780-5,830 26/08 AugSouthern China DomesticMetal Bulletin’s appraisal of prices in Southern China for commer-cial-quality carbon steel of Chinese origin, yuan per tonne delivered warehouse (yuan/$=6.39)Rebar 5,060-5,270 26/08 AugWire rod (mesh) 5,140-5,160 26/08 AugSections 5,050-5,100 26/08 AugPlate 4,960-5,010 26/08 AugHot rolled coil (min 2mm) 4,940-4,960 26/08 AugCold rolled coil (0.5 - 2mm) 5,560-5,600 26/08 AugHot-dip galvanized coil 5,900-6,080 26/08 AugIndian exportsMetal Bulletin’s appraisal of Indian mills’ prices for export of commercial-quality carbon steel, $ per tonne fob main India port.Billet 660-670 10/06 JunPlate (12-40mm) 715-720 15/07 AugHot rolled coil (commodity) 695-700 12/08 SepHot-dip galvanized coil 970-980 11/03 MarIndian importsMetal Bulletin’s appraisal of prices for imported, non-EU origin, commercial-quality carbon steel, $ per tonne cfr main India port.Billet 655-665 10/06 JunPlate (20-60mm) 745-755 05/08 OctHot rolled coil (commodity) 720-725 05/08 OctHot rolled coil (CR grade) 725-730 05/08 OctCold rolled 790-800 19/08 OctHot dip-galvanized coil 840-850 15/07 AugIndian domesticMetal Bulletin’s appraisal of prices within India for commercial-quality carbon steel, rupees per tonne ex-works.Billet 29500-29600 12/08 AugHeavy plate 37000-37500 05/08 AugHot rolled coil 34500-35500 05/08 AugCold rolled coil 42500-43000 05/08 AugHBI 21500-21600 12/08 AugHot-dip galvanized coil 44000-44500 05/08 Aug

SteelBenchmarkerTM PricesProduct Price Aug 15Prices in $/metric tonne, except (short ton) and {€ per tonne}Region: USA, East of the MississippiRebar 853(774)Standard plate 1,110(1,007)Hot rolled coil 731(663)Cold rolled coil 864(784)Region: Mainland ChinaRebar 654Standard plate 645Hot rolled coil 637Cold rolled coil 723Region: Western EuropeHot rolled coil 753{520}Cold rolled coil 874{604}Region: World Export MarketStandard plate 762Hot rolled coil 710Cold rolled coil 803

Stainless SteelProduct Price Date MonthStainless Steel - Asia import$/tonne cif East Asian portGrade 304 2mm CR coil, 2B 3,250-3,300 26/08 SepGrade 304 HR sheet 3,100-3,200 26/08 SepStainless Steel - China Domesticyuan/tonne, in warehouseGrade 304 2mm CR coil 22,600-22,700 26/08 AugGrade 430 2mm CR coil 10,900-11,700 26/08 AugStainless Steel - EU export$/tonne fob N. European port.Min 100 tonne lotGrade 304 2mm CR sheet 3,838-3,949 26/08 SepStainless Steel - EU domestic2mm 304 cold rolled stainless sheet €/tonnebase price 1,100-1,160 26/08 SepAlloy Surcharge 1,564-1,581 26/08 Sep304 Stainless steel bright bar €/tonneBase price 1,100-1,150 26/08 SepAlloy Surcharge 2,180-2,233 26/08 Sep

Key:Date: Date of last reported transactionsMonth: Month of production in the case of export or domestic tables; month of delivery in the case of import tablesPrices in italics are offer prices not transaction l All prices are MB copyright except SteelBenchmarker


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Scrap, Secondary Metals, Scrap Substitutes & Iron Ore

Ferrous scrapUK ferrous scrapThe following is Metal Bulletin’’s evaluation of UK prices for processed scrap delivered to consumers. Prices may vary according to region and destination, and should therefore be read in conjunction with editorial comment on the Scrap & Secondary Metals pages.£/tonne Aug 5 Cut GradesOA plate and structural 245-2601&2 Old steel 225-24512A/C/D New Production heavy andshovellable steel 230-250Bales and Cuttings4A New steel bales 260-2704C New steel bales 250-2608A New loose light cuttings 235-2508B New loose light cuttings 225-245Turnings7B Heavy steel turnings 195-205Cast Iron9A/10 Heavy and light cast iron 230-2509B/C Cylinder block scrap 290-30511A Cast iron borings 230-250Prices relate to new UK scrap specifications.‡‡Please see MB.com for full explanation of price changesUK Intermerchant weekly price£/tonne Aug 265C Loose old light 175-185UK ferrous scrap export MB assessment, $/tonne fob main UK port Aug 18 Aug 25HMS 1&2 (80:20 mix) 425-430 423-425Shredded 442-445 430-435Indian Imports MB assessment, $/tonne cfr Nhava Sheva Aug 18 Aug 25HMS 1&2 (80:20 mix) 475-480 475-480Shredded 502-505 495-500Alloy steel scrapUK wholesale merchants’ stainless (£/tonne) Aug 2618/8 turnings 891-90018/8 solids 1,150-1,20012-13% Cr solids 230-25016-17% Cr solids 300-310Cif Europe stainless ($/tonne)18/8 solids 2,011-2,05618/8 turnings 1,709-1,748UK home high speed (pence/kg)6-5-2 solids 200-2206-5-2 turnings 130-160Rotterdam exportMB assessment, $/tonne fob Rotterdam Aug 18 Aug 25HMS 1&2 (80:20 mix) 435-440 430-435HMS 1&2 (70:30 mix) 415-420 415-420Shredded 440-445 435-440Turkish importMB assessment, $/tonne cfr main Turkish ports Aug 18 Aug 25HMS 1&2 (80:20 mix) 465-470 465-470HMS 1&2 (70:30mix) 435-437 435-439Shredded 469-475 470-475US exportMB assessment, $/tonne fob East Coast Aug 18 Aug 25HMS 1&2 (80:20 mix) 433-435 435-440Shredded 436-440 440-445USAIron Age scrap price bulletin composite - $/long ton delivered Pittsburgh/Chicago.Week ending Aug 18 Aug 25No 1 heavy melting 418.50 418.50No 2 bundles 352.00 352.00MB assessment of Broker Buying Price, $/tonne delivered DetroitNo 1 busheling 400.00 400.00No 1 bundles 375.00 375.00China domesticyuan/tonne delivered mill Aug 26Heavy Scrap 3,840-3,870GermanyEuro/tonne, delivered at scrapyard. Source: BDSV Jul AugNo E2/8 (new steel scrap) 330.80 321.20No E1 (old steel scrap) 266.80 265.80No E3 (old thick steel scrap) 310.10 308.20No E40 (shredded steel scrap) 305.40 304.70No E5 (steel turnings) 233.70 236.40

Non-Ferrous scrap EuropeAluminiumEuropean free market (MB assessment. €/tonne eff Aug 26)Floated Frag 1,330-1,400Cast 1,230-1,300Mixed turnings 6% 1,100-1,180LME Cash primary (lowest midday bid) $2,333.00LME 3 Months alloy (lowest midday bid) $2,235.00Germany (per 1000kg eff Aug 24) €Pure Cuttings 1,300-1,400Commercial Cast 1,100-1,250H9 Extrusions 1,570-1,650Alloy Turnings 830-950Source:VDMFrance (per 1000kg eff Aug 9) €Pure Cuttings 1,600-1,630Old Rolled 900-950Commercial Cast 1,000-1,020Source: Lettre d’Information MetauxItaly (per 1000kg eff Aug 19) €Pure Cuttings 1,330-1,430Old Mixed Scrap 1,215-1,265Commercial Cast 1,215-1,265Source: AssometCopperGermany (per 1000kg eff Aug 24) €Copper Wire (Berry) 5,850-6,100Heavy Copper 5,520-5,720Heavy Brass 3,200-3,400Brass Turnings (MS 58) 3,400-3,800Brass Sheet (MS 63) 3,700-4,300Source:Verein Deutscher MetallhandlerFrance (per 1000kg eff Aug 9) €Electro Cuttings 6,400-6,450No 1 Bright Wire 5,900-5,950Mixed (96%) 5,800-5,850Brass Plate Cuttings 70/30 4,400-4,430Brass Turnings 3,500-3,550Mixed Brass 3,350-3,400Source: Lettre d’Information MetauxItaly (per 1000kg eff Aug 19) €Electrolytic dd EN 12861-S-Cu-2 5,925-5,977Enamelled wire EN 12861-S-Cu-3 5,765-5,817New from tubes, strips etc EN 12861-S-Cu-4 5,885-5,937Old from tubes, strips etc 12861-S-Cu-7 5,615-5,667EN 12861-S-Cu-Zn-1-A-Cu 63.5% 4,190-4,267Mixed from valves/taps EN 12861-S-Cu-Zn-6 3,639-3,717Several 95% m/m 12861-S-Cu-Zn-7 3,439-3,517Source: Assomet

SteelBenchmarkerTM scrap pricesPrices in $/metric tonne, except [gross ton]Region: USA, East of the Mississippi Aug 15†Shredded Scrap 432 [439]No 1 Heavy melting scrap 396 [402]No 1 Busheling scrap 468 [476]†For shredded scrap the region is for all but the West CoastRegister as a price provider at www.steelbenchmarker.com

Scrap SubstitutesProduct Price Date MonthEU Imports €/tonne cfr Western EuropePig Iron 368-372 16/08 SepSouth American exports $/tonne, delivery terms as statedHot briquetted iron 350-400 25/08 AugPig Iron basic steelmaking;fob Vitorio/Rio 495-505 25/08 SepPig Iron basic steelmaking;fob Ponta da Madeira 510-515 25/08 SepUS Imports $/tonne cfr Gulf of MexicoPig Iron 535-540 16/08 SepCIS Exports $/tonne fob main Black/Baltic sea portPig Iron 530-535 16/08 SepChina Domestic yuan/tonne, delivered warehousePig Iron 3900-3950 26/08 Aug

China Iron orecfr main China port $ per dry metric tonneProduct Price Date MonthIron ore fines (63.5% fe) 187-188 26/08 AugIron ore pellets (65-66% fe) 202-204 26/08 Aug

MB Indices Aug 26 $/tonneIron ore index (62%) 178.40Ferrous Scrap CFR Turkey HMS 1&2 (80:20) 464.51Ferrous Scrap FOB Rotterdam HMS 1&2 (80:20) 439.44Ferrous Scrap CFR India Shredded 500.69

UK non-ferrous scrapThe following UK prices were assessed on Aug 24)Aluminium £/tonne Actual Price MB LME DiscountsGroup 1 Pure 99% min (baled) 1300-1350 61-111Group 1 Litho (baled) 1300-1350 61-111Commercial pure cuttings 1200-1250 161-211Clean HE9 extrusions 1300-1350 61-111Mixed alloy/Old Rolled cuttings 900-950 431-481Baled Old Rolled 950-1000 381-431Commercial cast 1000-1080 301-381Cast wheels 1300-1350 31-81Commercial turnings 720-820 561-661Group 7 turnings 600-650 731-781LME primary avge: 1411.44LME alloy avge 1381.94Titanium $/lb cifTurnings, unprocessed type 90/6/4 (0.5% Sn max) 2.70-2.85Turnings, unprocessed 90/6/4 (over 0.5%, max 2% Sn) 2.60-2.75

Non-ferrous foundry ingotsAluminium UK effective August 24) £/tonneMB free marketLM24 Pressure diecasting ingot 1,620-1,680LM6/LM25 Gravity diecasting ingot 1,920-1,960NB: prices expressed delivered consumer works, LM series as specified in BS1490Aluminium Europe effective August 26) $/tonneMB free marketDuty unpaid in warehouse alloy premium 70-80Duty paid delivered works pressure €/tonnediecasting ingot price (DIN226/A380) 1,810-1,900Aluminium US effective August 25 $/lb delivered MidwestA380.1 alloy 1.18-1.20AFFIMET prices effective August 1 €/tonneAS 12 3,170AS 12 UN 3,180AS 9 U3 2,510AS 5 U3 2,860Reflects generally larger traded lotsVDM effective August 24) €/1000 kg deliveredDIN 226 2,260-2,360DIN 231 2,340-2,440DIN 311 2,320-2,420Aluminium Bronze UK effective August 23) £/tonneAB1 ex-works 5,700AB2 ex-works 5,760Source: C.F. Booth LtdBrass UK effective August 23) £/tonneSCB3 ex-works 3,900High Tensile HTB1 ex-works 4,550Source: C.F. Booth LtdGunmetal UK effective August 23) £/tonneLG2 85/5/5/5 ex-works 5,100LG4 87/7/3/3 ex-works 5,700G1.11.5 Pb ex-works 6,890Source: C.F. Booth LtdPhosphor Bronze UK effective August 23) £/tonnePB1 ex-works 7,380Source: C.F. Booth LtdPhosphor Copper UK effective August 23) £/tonne10% P ex-works 7,40015% P ex-works 7,500Source: C.F. Booth LtdZinc Alloys UK £/tonneBrock Metal Co June Contract Alloy Price (delivered UK, min 25 tonne lots)Brock Metal ZL3 1,990Brock Metal ZL5 2,035


l Prices and other information contained in this publication have been obtained by Metal Bulletin from various sources believed to be reliable. This information has not been independently verified by Metal Bulletin. Those prices and price indices which are evaluated or calculated by Metal Bulletin represent an approximate evaluation of current levels based upon dealings (if any) that may have been disclosed prior to publication to Metal Bulletin. Such prices are collated through regular contact with producers, traders and purchasers although not all market segments may be contacted prior to the evaluation, calculation, or publication of any specific price or index. Actual transaction prices will reflect quantities, grades and qualities, credit terms, and many other parameters. The prices are in no sense comparable to the quoted prices of commodities in which a formal futures market exists.Efforts are made to ensure that pricing information is representative, but because of the possibility of human or mechanical error by our sources, Metal Bulletin, or others, Metal Bulletin does not guarantee the accuracy or completeness of any published information. Metal Bulletin is not responsible for errors or omissions, or for the results obtained by the use of such information, and disclaims any liability to any person for any loss or damage caused by such errors or omissions, including those arising from the negligence of Metal Bulletin, its employees, or representatives.

Key:Month: Month of production in the case of export or domestic tables; month of delivery in the case of import tablesl All prices are MB copyright; except SteelBenchmarker

Hotline


One of Hotline’s chief joys in life is prompting a chorus of appreciative noises from her workmates when she sits down in front of her computer to eat her latest, fragrant, culinary experiment.

Imagine then, the levels of empathy felt when Hotline learned that Anglo-Australian miner BHP Billiton has banned its employees from eating food with “strong odours” in the office.

A spokesman for BHP Billiton confirmed this policy among several others, including a ban on

PostIt notes stuck to keyboards and monitors, and forbidding workers to eat at their desks.

“We have a clean-desk policy for security reasons,” the spokesman said, adding that rules varied from office to office.

BHP obviously feels that the more aromatic aspects of world cuisine are not heaven-scent.

Hotline would like to invite time-poor BHP office workers mourning their lunchtime curries to come to MB Towers to share their deliciously smelly food.

BHP Billiton bans smelly food in offices

A Russian, a mansion and no idea

Be on your guard, Rinat and Lakshmi, because you face serious competition on the UK real estate market.

According to UK and Russian media reports, an unnamed party has acquired the Park Place mansion in Oxfordshire for £140 million ($229 million).

The amount edges out the £136 million that Rinat Akhmetov paid for his pied á terre at One Hyde Park earlier this year, and is double what ArcelorMittal chief Lakshmi Mittal stumped up for his humble abode at Kensington Palace Gardens a few years ago.

While reports state that it was a Russian billionaire who bought Park Place – reportedly once home to King George II’s eldest son and now boasting a helipad, spa complex, home cinema and high-tech security system – that individual’s identity remains a mystery.

But one person who most definitely did not acquire the place was Vladimir Lisin, chairman of Novolipetsk Steel.

Lisin’s own press service released a statement earlier this month, which also came through NLMK’s press service, asserting that the

Russian steel magnate had “not acquired and was not interested in the possibility of acquiring” Park Place.

That’s that, then.The denial followed reports on

Russian public radio station Radio Rossii, saying that Lisin had acquired the mansion, his press service claimed.

So, the new owner of Park Place remains for now an unresolved riddle for Hotline.

If anyone can furnish definite proof of the individual investor’s identity, Hotline would like to hear from you.

ThyssenKrupp has appointed Frank Brüggestrat head of human resources at its

soon-to-be-spun-off stainless steel unit. Brüggestrat, who holds the same role at ThyssenKrupp’s marine systems division, will take up his new role on September 1. The options under consideration for the stainless unit are an initial public offering, a spin-off or an outright sale, ThyssenKrupp reiterated last week.

Dead Sea Magnesium (DSM) has appointed Meir Mergi president and ceo, the company announced last week. “Mr Mergi brings extensive experience to DSM, having participated since 1994 [in] the construction, start-up and operations of the state-of-the-art and fully integrated DSM magnesium electrolytic smelter in Sdom, Israel,” the company said.

Copper producer Kazakhmys has appointed Charles Watson an independent non-executive director with effect from August 24. Watson will retire from Shell, where he has worked for 29 years, on August 31. He has served as Shell executive vp covering Russia, as CIS chairman of Shell Russia and as chairman of the board of directors for the Sakhalin Energy Investment Co, with overall responsibility including oversight of Shell’s activities in Kazakhstan.

Jeff Millhollin will take over as ceo of Pacific Steel & Recycling on September 2, filling the post held by Raymond Wahlert for the past eight years. A 25-year recycling industry veteran, Millhollin has been with the US-based scrap processor for the past twelve years, working as a regional manager in the Boise/Nampa area, manager of ferrous marketing and vp of operations before he was named executive vp.

CaNickel Mining has appointed Dianmin Chen ceo following the resignation of interim ceo Kevin Zhu, the company said last week. Zhu resigned due to personal reasons, the Vancouver, British Columbia-based company said in a statement.

Milling ABout

A United Nations driver has been arrested for allegedly attempting to smuggle 1,200kg of cassiterite out of the Democratic Republic of Congo (DRC) into Rwanda, Hotline learned last week.

The driver was caught at the border town of Goma in possession of two dozen 50kg parcels of the mineral, according to local media.

The cassiterite is from the volatile eastern parts of the DRC where mineral exports are said to be under the control of rebel forces.

The incident will fuel fears that smuggling of highly sought-after minerals such as cassiterite, coltan, gold and diamonds is still rife in eastern parts of the DRC.

The incident calls into question how well officials in the UN mission comply with both UN Security Council resolutions regarding their presence in the DRC and with Congolese law, information minister Lambert Mende said.

While the arrest will be a cause for embarrassment for the UN mission, armed forces have long been implicated in the illegal cross-border mineral trade.

Last month, police seized ten tonnes of cassiterite following a raid at the DRC armed forces’ headquarters in Goma Ndosho.

Police sources believe the mineral was transported in an army truck from South Kivu by

soldiers, local radio reports said. DRC’s North and South Kivu and

Maniema provinces are rich in cassiterite, coltan, gold and diamonds. Rebels in the eastern parts of the country have often been accused of illegally mining and exporting the minerals to pay for war activities.

DRC media reports claim that 80% of mineral exports in North Kivu, South Kivu and Maniema are beyond state control.

The DRC government last year suspended artisanal mining in these regions, but the army officials sent in to enforce the suspension are themselves allegedly involved in the illegal mining and export of minerals.

un implicated in DRC illegal cross-border mineral trade


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