REVOCATION of the ANTIDUMPING DUTY ORDER on UKRAINIAN Simn WILL NOT LEAD to CONTINUATION OR RECURRENCE of MATERIAL INJURY
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REVOCATION OF THE ANTIDUMPING DUTY ORDER ON UKRAINIAN SiMn WILL NOT LEAD TO CONTINUATION OR RECURRENCE OF MATERIAL INJURY Production Innovation Trading LLC Septennber, 2018 FELMAN 's & ERAMET's SHARE in US SiMn CONSUMPTION 2017 COMING SOON US steel tariff policy leads to + 62K MT SiMn additional consumption Source: IMn1 2018 Annual Market Research Report USA SiMn Production vs USA SiMn Import 2012- 2017 500 1600 450 - 1500 400 - 1400 350 - 1300 300 - 1200 250 - 1100 200 - 1000 150 - 900 100 - 800 • •-- 50 - 700 o i 600 2012 2013 2014 2015 2016 2017 —40—USA SiMn Production (000 mt) (left-axis) —ile— USA SiMn Import (000 mt)(left-axis) — —SiMn price (65% Mn Ex-Warehouse, USA, USD/t) (right-axis) The level of SiMn import as well as market price changing do not have significant impact on US SiMn production Sources: USA SiMn Production - IMnI 2018 Annual Market Research Report USA SiMn Import - Global Trade Atlas SiMn price - CRU BFA Monthly prices Increase in production of Indian steel and SiMn. Reduction of its export to the USA The Indian government is planning to increase its steel production up to 300 million tons by 2030. With a uniform increase, we can talk about additional 16 million tons of steel per year. The demand for silicornanganese for the production of 16 million tons of steel will be about 160 thousand tons. (000 mt) (000 mt) 4,000 - Expected additional SiMn - 280,000 3,500 - demand in the USA: 3,000 - - 230,000 2,500 - + 8K MT - 180,000 2,000 Indian SiMn 1,500 130,000 + 13K MT 1,000 Malaysian SiMn - 80,000 500 A,•,A.A,A.A,A,A- 30,000 — ("4 m Lel s.0 r, CO as C> — rs1 •41- • •0 I". CO Os 0 in .4) Is. CO as C) 0 0 0 0 0 0 0 0 0 ("4 ("4 ("4 or) 0 0 0 C> 0 0 0 0 C> 0 0 0 0 O C> 0 0 C> 0 0 0 0 0 C> ("4 csi cs1 ("4 ("4 N .1_,—SiMn Production (left-axis) --SiMn Export (left-axis) —•—Steel Production (right-axis) Source: (2001-2017) IMnlAnnual Market Research Report - 2018 (2018-2030) prospectives Ukrainian SiMn's specific chemical composition Ukrainian manganese ore Ic Ukrainian SiMn Mn 70 - 72% P 0,5 - 0,6% -STRUCTURAL STEEL PRODUCERS; -CUSTOMERS, who are willing to pay higher price for high Mn content ERAMET's Advantages in the US Ferroalloys Market • Producer of SiMn in the US market • Integrated producer (owner of mines in South Africa, Gabon) CONCLUSIONS US global Ukrainian SiMn will dependency from India and Malaysia not compete with import at the time will leave the US US or other of increasing market imports of SiMn consumption Having strong Specific of advantages Eramet Ukrainian SiMn has an unbeatable quality leads to the position in the limited range of the domestic market US Consumers I 1 I I Revocationi of the antidumping duty order on Ukrainian SiMn will not lead to continuation or recurrence of material injury. Occupied Territories Control over settlements: 11•No THE SITUAT Under control of Ukraine IN THE EASTERN REGIONS Positions of Ukrainian military OF UKRAINE 1311011k . 044. Existing 2 November 2015 (00:00) Bilokurakyne NoVopskati Ma X Combats location Territory of the pro•ussian militants shelling ' Starohilsk The border Border areas under the control of Ukraine Pobeda Border areas not under control of Ukraine Humanitarian corridors through ceasefire Novoaidar demarcation line • verodonetsk Shyrokyi Krasnyl Lyman dunsk Ttaithithenka Shchastya Staetytnla Main check-points on Ukraine-Russia border Yampil' I -- Luhanoka Sioviansk Siversk iiiru'ke anoserbs'k Working — DonggiY 1 Kramatorsk I P" "", eoroomais'a rz'''' °h'`'%, Luhansk A Kalynove , Oleksanddyka Artemivs'k • Novowitli Controlled by pro.Russian militants Druthkivka I 1 Stakhanov 41all• , I Troittke SvitIodars'k aar Alchevs'k Lutovit i ne. Wayne • e Humanitarian logistics centers for Kostyantyniv ka Pereval's'k the residents of the occupied Donbas region • l Itraltodon Kamensk- DobroplIlla Elterthyrts.k Vuhlehirsic eir • • Debartseve og ShakhOnsky Seven task (ships and toast guard Sverdlovsk form Antratsit motorboats) are continuing to guard the sjanteleimonivka .1 • 0 • 16 , Anet Sea to prevent the penetration of krasnoa• rmllsk • -"4. krasnyl Rovenky crienionoparlygenrk Avdlivka...) * &out Ice .Loch 116. sabotage and Intelligence groups on the Mi"Yn'k toast of Donetsk and Zaponchla Was's. and to guard the raids of the Manurial ed114IrT-411PDovzhansky " 1111 Krasnohorivlia ' and Berdyansk ports ' • Ikkh'ilviln: Yzli.okValibSIkkinsoa:rk.mS: lzhjYnne Kuruldurve•- , Donetsk • of military units of .44kmvrosiivka The location Velyka Niaryinka "alts• the Russian Federation Novosilka 4 0 Nouoshakhtinsk \:4okudiajevs' -...n.''' [)OHS tarobesh i\s:r s potroits'ke Boeing 777 crash site July 17, 2014 Voinovakhailt zrir Hran. ZAPORIZHIA Chemsa Volodarske grasnoarrni Ministry OBLAST Talak of Defense II of Ukraine Mariupo7,:. 40, fitWoaloosh Slyrokyne Manhush http•www milsgov ua isJikkoo. 4UKRAINE CRISIS ;kr fnecito ,ent, A Projectile hit a Transformer Substation that supplied Electricity to the Plant An Explosion of Shells close to the Gas Cleaning Shop left all the Broken Windows A Projectile hit the Plant Management Office The Plant Management Office after the Attack ( \ .