Raw Materials Daily Issue 577 Friday 7th July 2017 Iron Ore • Metallurgical Coal • Coke • Scrap • Ferroalloys • Latest News • Analysis • Data

Contents Mysteel Iron Ore Index 62% Fe (Australia Fines) CFR

Industry & Market News 2 100 Chinese Raw Materials Prices 4 90 Key Indicators & Analysis 6 80 Maintenance & Restrictions 8 70 Iron Ore Shipments 9 60 Domestic Mine Operation 11 Inventories Overview 12 50

Port Congestion 13 40 Inventories of Australian Ore 14 30

Inventories of 20 Brazilian Ore 15 Inventories of 10 Indian Ore 16 0 Iron Ore For Trading 17 Stocks in Bonded Areas 18 Daily Offtakes 19 Renewed domestic iron ore consumption provides support to Total Iron Ore Inventories 20 local portside prices About Mysteel 21 Mysteel’s major iron ore portside prices edged up around RMB5/t today, as mills returned to the market after a period of sitting on the sidelines. We Editorial had heard some mills had been reluctant to purchase material earlier in the Vice President: week due to unclear direction in the market. More recently, however, some Zhang Yong mills have ramped up their output in response to robust margins and the +86-21-2609-3209 end of routine maintenance programmes. For example, Mysteel’s bespoke [email protected] survey of blast furnace capacity utilization across 163 steel mills shows that rates increased 0.74% week-on-week tp 85.34% on Friday 7th July 2017. Head of Market Intelligence: Atilla Widnell That said, Mysteel understands some traders were reluctant to sell cargoes. +65-6653-8226 As a result, some steel mills raised offer prices to conclude deals. At the [email protected] same time, we estimate relatively lower portside inventories supported the increase in portside prices. According to Mysteel’s survey of 45 major do- Editors: Victoria Zou mestic ports, inventories declined 1.84 Mt over the past week to 142.29 Mt [email protected] on Friday 7th July. As a result, Mysteel’s 62% Fe iron ore index for portside materials increased RMB7/t day-on-day to RMB478/t, FOT Qingdao (incl. Eleanor Wu tax). [email protected] Industry & Market News 2

Hei Longjiang province announces plans to the back of low inventory driven by mills’ production close four coal mines; eliminating 2.92Mt of restriction. capacity in 2017. Hei Longjiang province an- nounced plan to permanently close four coal mines Steel supply may move up steadily but the co- and eliminate 2.92Mt of capacity in 2017. Among relation between supply and demand will not be the four coal mines, the closure of the Xin Lu colliery changed drastically, said Wei Songhui, researcher of of He Gang Mining Company, and the Xin Qiang Minmetals & Jingyi Futures. Steel structure upgrad- colliery of Qi Taihe Mining Company, belonging to ing and capacity optimization is the irreversible trend Longmayi Mining Group, will eliminate 1.00Mt and under the background of supply-side reform, supply 1.4Mt annual capacity respectively. will be kept within a controllable range even though it may show a certain upward trend. In addition, it is Meanwhile, the two other mines of Yi Wuyi Coal estimated that in the second half year, steel demand Mining Co., Ltd in Hei He city will see the removal of will become stronger driven by the increased invest- 450,000 and 70,000 of annual coal capacity. Moreo- ment of infrastructures construction, which can help ver, the provincial government plans to resettle the GDP growth rate stay above 6%. 8,199 affected coal workers.

80% of Chinese enterprises fail to meet strict environmental standards. The chair- man of the supervisory board, Ji Xiaonan, from SASAC key large enterprises said at the China Green Development Forum on 6th July 2017 that approximately 80% of China’s enterprises have various problems meeting environmental regulations according to the supervision on the prevention and control of air pollution in Beijing, Tianjin and the sur- rounding areas. Moreover, Ji Xiaonan noted there was a huge challenge for China to deal with the relationship between enterprise development and environmental governance. The chairman stated that central enterprises will play an important role during the process of developing greener practices, which was also up to the industry to manage. Cut- ting overcapacity and adjusting layout structure are helpful to reduce waste of resources and promote green development.

Newly-added electric furnaces not to disturb balance between supply and demand. Market participants argued that the balance between supply and demand will not be disturbed by properly re- leased capacity amid high profit in steel industry.

As one of the raw materials for steel production, scrap followed the rising trend of steel prices recent- ly due to the increasing usage of electric furnaces after substandard steel elimination, and the bullish sentiment of steel traders, seen by Wei Yingsong, a senior analyst from Mysteel.

A steel trader from Qingdao indicated that steel prices may continue to maintain at a high level on

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Economic Highlights 3

Global Economics: Central Banks are be- numbers come at a time when the Chinese govern- coming more hawkish. The Fed has been for ment is trying to keep a strong economic growth some time the only hawk amongst Central Bankers. while embarking into a series of measures aiming at Markets have anticipated another 25bp interest rate de-leveraging the economy. It therefore gives more hike in 2017 with the possibility of two more in- room for the PBOC to push ahead with reforms. creases in 2018. As the world economy is continuing However, we believe that as the 19th National Con- its synchronised upswing, the Fed hawkish rhetoric gress of the Communist Party of China nears, the has been joined by the European Central Bank, the monetary authorities will become more prudent, to Bank of Canada and after a surprising reversal, by ensure that there will be sufficient financial stability Bank of England, triggering the question whether we at that time. could see a synchronised tightening. Central Bank- ers are certainly making their rhetoric louder but we The Chinese Yuan has also posted its strongest believe that they will be very prudent in walking the quarterly gain in nine years, rising 1.8% vs the US walk with more tolerance for inflation -which has yet dollar over the past three months. All this points to materialize- and not put the economy at risk. towards a stronger than expected economy in the In the US, Fed officials have been discussing over second part of the year with at worst a mild slow- how the central bank should react to the US econ- down driven by moderating property prices. It is omy’s seemingly conflicting signals from unemploy- difficult to not mention the 20th anniversary of Hong ment and inflation. Kong handover to China, which took place on July 1st 1997. In its speech Chinese President Xi Jinping Joblessness dropped to 4.3% in May, a 16-year low. said that challenges to China’s rule would not be Ms Yellen and some of her colleagues have called tolerated and that the city’s leaders must find new for continued, if slow, tightening because they ex- ways to profit from Chinese economic clout, adding pect labour market gains will eventually trigger high- that they must build political consensus, devise new er wages and overall prices. Last week however, Ms economic drivers and address soaring home prices. Yellen nodded to concerns among some economists Hong Kong has Asia’s largest wealth disparity with that inflation expectations might be declining. ‘We housing prices having increased by nearly 400% don’t get a consistent story,’ she said. In a com- over the past thirteen years while the median wages prehensive speech hold in Sintra, Portugal, ECB’s trailed with a 75% rise. In terms of economic weight, President Draghi said that ‘deflationary forces’ have Hong Kong accounts now for only 3% of total been replaced by ‘reflationary forces’ summarizing China’s economy vs nearly 20% two decades ago, the optimism in the euro-area. Mr Draghi appeared reducing China’s tolerance for any political dissent. also convinced that the Phillips Curve will steepen During Mr Xi’s visit, the Hong Kong stock exchange at some stage but called for patience. He mentioned announced that foreign investors would, from Mon- that external shocks -mostly driven by commodities-, day July 3rd, gain access to China’s US$10tn debt wages upward resistance and a ‘labour market more market through a local bond connect. Mr Xi also contestable’ are causing delays in the transmission oversaw the signing of an agreement to develop from demand growth to inflation. Mr Draghi also said closer economic links between Hong Kong, Macau that patience was still necessary before removing and nine cities in the Guangdong province. the accommodative monetary policy. Nevertheless, Germany’s 10-year bond yield surged from 0.245% to 0.45% also helped by an increase in the German June inflation to 1.5% YoY from 1.4% YoY in May.

China economy: stronger than expected. Weekly Economic Highlights provided by: China’s manufacturing PMI increased in June to Erik Sardain and Gilberto Cardoso 51.7 vs 51.2 in May, beating a consensus forecast Managing Partners of 51, an indication that China manufacturing is Victorem Capital taking full advantage of a stronger global economic www.victoremcapital.net demand. Non-manufacturing PMI also increased The opinions, findings, and conclusions or to 54.9 in June vs 54.5 in May, indicating a buoy- recommendations expressed in this analysis are ant service and construction activity. These positive those of the authors and do not necessarily re- flect the views of Mysteel or Shanghai Ganglian.

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Chinese Raw Materials Prices 4

Benchmark Grade Terms Units Latest Prev. Day D/D % Prev. Week W/W % Prev. Month M/M %

Fines Mysteel Australian Fines 58% Index CFR $/dmt 51.50 49.75 3.5% 51.50 0.0% 46.75 10.2% Mysteel Australian Fines 62% Index CFR $/dmt 63.80 62.00 2.9% 63.90 -0.2% 56.00 13.9% Mysteel Brazilian Fines 65% Index CFR $/dmt 80.15 77.65 3.2% 79.45 0.9% 71.50 12.1% Mysteel Indian Fines 52% CFR $/dmt 25.00 23.50 6.4% 24.75 1.0% 18.75 33.3% Mysteel Indian Fines 56% CFR $/dmt 33.95 32.45 4.6% 33.95 0.0% 28.70 18.3% Mysteel Indian Fines 58% CFR $/dmt 37.75 36.25 4.1% 37.50 0.7% 32.50 16.2% Mysteel Indian Fines 63.5% CFR $/dmt 62.95 61.45 2.4% 63.55 -0.9% 56.05 12.3% Mysteel Australian Fines 58% Port Index FOT RMB/wmt 416.00 411.00 1.2% 408.00 2.0% 395.00 5.3% Mysteel Australian Fines 62% Port Index FOT RMB/wmt 478.00 471.00 1.5% 471.00 1.5% 440.00 8.6% Mysteel Brazilian Fines 65% Port Index FOT RMB/wmt 625.00 615.00 1.6% 601.00 4.0% 606.00 3.1% Caofeidian PB Fines 61.5% Port Index FOT RMB/wmt 485.00 485.00 0.0% 480.00 1.0% 440.00 10.2% Robe Valley Fines 57.0% CFR $/dmt 48.45 46.95 3.2% 48.45 0.0% 43.45 11.5% Yandi fines 57.3% CFR $/dmt 50.30 48.80 3.1% 50.55 -0.5% 45.80 9.8% SSF 56.7% CFR $/dmt 41.75 40.50 3.1% 42.00 -0.6% 39.00 7.1% FB Fines 58.3% CFR $/dmt 47.25 45.75 3.3% 46.20 2.3% 41.20 14.7% PB fines 61.0% CFR $/dmt 62.70 60.90 3.0% 62.80 -0.2% 55.15 13.7% Mac fines 60.8% CFR $/dmt 58.35 56.55 3.2% 58.05 0.5% 48.95 19.2% JMBF 61.3% CFR $/dmt 56.15 54.35 3.3% 55.50 1.2% 48.85 14.9% Newman fines 62.5% CFR $/dmt 65.00 63.20 2.8% 65.10 -0.2% 57.70 12.7% SSFG 62.5% CFR $/dmt 59.60 58.10 2.6% 60.45 -1.4% 53.20 12.0% SSFT 62.5% CFR $/dmt 60.00 58.50 2.6% 60.85 -1.4% 53.60 11.9% BRBF 63.1% CFR $/dmt 62.25 60.75 2.5% 63.10 -1.3% 56.40 10.4% IOCJ 65.0% CFR $/dmt 79.50 77.00 3.2% 78.80 0.9% 70.85 12.2% Indian fines 50/50% CFR $/dmt 23.25 21.75 6.9% 23.00 1.1% 16.75 38.8% Indian fines 55/54% CFR $/dmt 31.45 29.95 5.0% 31.45 0.0% 25.70 22.4% Indian fines 60/59% CFR $/dmt 49.05 47.55 3.2% 49.60 -1.1% 41.80 17.3% Indian fines 61/60% CFR $/dmt 50.80 49.05 3.6% 51.35 -1.1% 43.30 17.3% Indian fines 62/61% CFR $/dmt 54.60 52.85 3.3% 55.20 -1.1% 47.15 15.8% Indian fines 63/62% CFR $/dmt 58.40 56.65 3.1% 59.00 -1.0% 51.20 14.1% Iranian Hematite fines 60/59% CFR $/dmt 34.00 32.25 5.4% 33.75 0.7% 28.25 20.4% Iranian Hematite fines 61/60% CFR $/dmt 35.00 33.25 5.3% 34.75 0.7% 29.25 19.7% Iranian Hematite fines 62/61% CFR $/dmt 36.00 34.25 5.1% 35.75 0.7% 30.25 19.0% Iranian Magnetic fines 60/59% CFR $/dmt 36.00 34.25 5.1% 35.75 0.7% 30.25 19.0% Iranian Magnetic fines 61/60% CFR $/dmt 37.00 35.25 5.0% 36.75 0.7% 30.25 22.3% Iranian Magnetic fines 62/61% CFR $/dmt 38.00 36.25 4.8% 37.75 0.7% 32.25 17.8% Lump Mysteel Lump Premium 62.5% Index $/dmtu 0.200 0.200 0.0% 0.190 5.3% 0.126 58.7% PB lumps 62.5% CFR $/dmt 76.55 74.75 2.4% 76.00 0.7% 64.00 19.6% Newman lumps 63.2% CFR $/dmt 77.85 76.05 2.4% 77.20 0.8% 64.75 20.2% Mac lumps 62.5% CFR $/dmt 75.40 73.60 2.4% 75.00 0.5% 63.20 19.3% Tianjin PB Lumps 62.5% FOT RMB/wmt 650.00 650.00 0.0% 645.00 0.8% 625.00 4.0% Rizhao PB Lumps 62.5% FOT RMB/wmt 625.00 615.00 1.6% 605.00 3.3% 590.00 5.9% Pellet Mysteel Pellet Premium 63% Index $/dmt 21.00 21.00 0.0% 20.50 2.4% 17.00 23.5% Mysteel Pellet Premium 65% Index $/dmt 29.50 29.50 0.0% 28.00 5.4% 23.00 28.3% Ukraine/Russia Pellets 63% CFR $/dmt 85.75 84.00 2.1% 85.50 0.3% 74.25 15.5% Ukraine/Russia Pellets 65% CFR $/dmt 96.50 94.50 2.1% 95.00 1.6% 82.00 17.7% Concentrate Tangshan (excl. VAT) 66% EXW RMB/wmt 510.00 510.00 0.0% 505.00 1.0% 520.00 -1.9% Tangshan (incl. VAT) 66% EXW RMB/dmt 645.00 640.00 0.8% 630.00 2.4% 655.00 -1.5% Ukrainian/Russian Pellet feed 65% CFR $/dmt 73.25 71.50 2.4% 73.00 0.3% 63.80 14.8% Iranian Pellet feed 66% CFR $/dmt 71.25 69.50 2.5% 70.75 0.7% 64.50 10.5% Iranian Pellet feed (HS) 66% CFR $/dmt 69.25 67.50 2.6% 68.75 0.7% 62.50 10.8% Iranian Sinter feed conc. 66% CFR $/dmt 69.25 67.50 2.6% 68.75 0.7% 62.50 10.8% Iranian Sinter feed conc. (HS) 66% CFR $/dmt 67.25 65.50 2.7% 66.75 0.7% 60.50 11.2% Other Per 1% Fe Differential 60-63.5% Index $/dmt 1.15 1.15 0.0% 1.05 9.5% 1.05 9.5% PB Fines vs. Tangshan Conc. 61.5% vs. 66% Spread RMB/dmt -95.00 -85.00 11.8% -85.00 11.8% -125.00 -24.0% Data Updated: 07/07/2017

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Benchmark Grade Terms Units Latest Prev. Day D/D % Prev. Week W/W % Prev. Month M/M %

Primary, Hard Changzhi Coal (low S) S0.4, V18-19, A<8.5, G85, EXWY14 RMB/wmt 1,205 1,205 0.0% 1,205 0.0% 1,225 -1.6% & Semi-Soft Liulin Coal (low S) V20, G>90, A9.5, S0.6 EXW RMB/wmt 1,230 1,230 0.0% 1,230 0.0% 1,230 0.0% Coking Coal Anze Coal A9.5, S1.5-1.8, V30, G85, Y25EXW RMB/wmt 1,220 1,220 0.0% 1,220 0.0% 1,220 0.0% Tangshan Coal A11-12, V22, S0.8-0.9, G>85,EXW Y17-23 RMB/wmt 1,340 1,340 0.0% 1,340 0.0% 1,340 0.0% Huaibei Coal* A11, V20-22, G80-90 EXW RMB/wmt 1,200 1,200 0.0% 1,200 0.0% 1,200 0.0% Huaibei Coal Index A11, V20-22, G80-91 FOT RMB/wmt 1,200 1,200 0.0% 1,200 0.0% 1,200 0.0% Pingdingshan S<0.5, A <10, V<26, G80, Y18-20FOT RMB/wmt 1,285 1,285 0.0% 1,285 0.0% 1,335 -3.7% Import, Australian A10.5，V21，S0.6，G85，CFR**Y17，CSN8$/t，CSR72 158 158 0.0% 154 2.6% 158 0.0% Lingshi Fat Coal (high S) S<1.6, G>90, Y>22, A10, V27-32EXW RMB/wmt 1,065 1,065 0.0% 1,065 0.0% 1,115 -4.5% Wuhai 1/3 Coking Coal G80, Y17, A <10.5, S <1, V<32EXW RMB/wmt 940 940 0.0% 940 0.0% 910 3.3% Liupanshui 1/3 Coking Coal V25, G85, A10, SShanxi Yangquan PCI Q7200, A11, S1.2 FOT RMB/wmt 875 875 0.0% 875 0.0% 875 0.0% Ningxia Shizuishan PCI Q6500, A10, S0.8 FOT RMB/wmt 780 780 0.0% 810 -3.7% 860 -9.3% Import, Australian PCI* V11-13, A9.5 CFR $/t 112.8 112.8 0.0% 113.0 -0.2% 115.3 -2.2% Import, Russian PCI* V11-13, A9.5 CFR $/t 100.0 100.0 0.0% 100.0 0.0% 105.0 -4.8% Import, Rizhao Port A<11, V<11, S0.8, HGI60, Q>6500EXW RMB/t 920 920 0.0% 920 0.0% 950 -3.2% Import, Rizhao Port A<12, V<10, S0.6, HGI55, Q>6500EXW RMB/t 930 930 0.0% 930 0.0% 930 0.0% Shanxi Yangquan PCI Index FOT RMB/wmt 800 800 0.0% 800 0.0% 800 0.0% Shanxi Shizuishan PCI Index FOT RMB/wmt 1,120 1,120 0.0% 1,020 9.8% 1,020 9.8% Import, Australian PCI Index DEQ RMB/t 875 875 0.0% 875 0.0% 891 -1.8% Import, Russian PCI Index DEQ RMB/t 835 835 0.0% 835 0.0% 859 -2.8% Pizhao Port PCI Index FOT RMB/t 930 930 0.0% 930 0.0% 930 0.0% Pig Iron Tangshan (L8-L10) Steelmaking Pig Iron EXW RMB/t 2,520 2,520 0.0% 2,500 0.8% 2,500 0.8% Xuzhou (L8-L10) Steelmaking Pig Iron EXW RMB/t 2,360 2,360 0.0% 2,320 1.7% 2,250 4.9% Xiangfen (L8) Steelmaking Pig Iron EXW RMB/t 2,380 2,380 0.0% 2,350 1.3% 2,350 1.3% Yicheng (Z18-22) Casting Pig Iron EXW RMB/t 2,650 2,650 0.0% 2,630 0.8% 2,680 -1.1% Wuan (Z18-22) Casting Pig Iron EXW RMB/t 2,700 2,700 0.0% 2,680 0.7% 2,730 -1.1% Xuzhou (Z18-22) Casting Pig Iron EXW RMB/t 2,470 2,470 0.0% 2,450 0.8% 2,400 2.9% Scrap Tangshan* 6-8mm MTP** RMB/t 1,670 1,670 0.0% 1,620 3.1% 1,490 12.1% Guangzhou* 6-8mm MTP** RMB/t 1,540 1,540 0.0% 1,470 4.8% 1,250 23.2% Shanghai* 6-8mm MTP** RMB/t 1,530 1,530 0.0% 1,500 2.0% 1,380 10.9% Zhangjaigang, Jiangsu* 6-8mm MTP** RMB/t 1,690 1,690 0.0% 1,610 5.0% 1,430 18.2% Hefei* 6-8mm MTP** RMB/t 1,510 1,510 0.0% 1,460 3.4% 1,380 9.4% Japan (Export) H2 FOB JPY/t 28,000 28,000 0.0% 28,000 0.0% 26,000 7.7% China (Import) US-origin HMS#1&2 (80:20) CFR $/t 278.0 278.0 0.0% 273.0 1.8% 268.0 3.7% All prices incl. tax otherwise stated, *excl. tax **Market Transaction Price Data Updated: 07/07/2017

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Key Indicators & Analysis 6

Mysteel 62% vs 58% Seaborne Fines Spread ($/t) Mysteel 62% vs 58% Portside Fines Spread (RMB/t)

16 120 14 100 12 80 10 8 60 6 40 4 20 2 0 0

Spreads rebounded to $12.7/t on Monday 3rd July, Portside spreads have widened to RMB62/t on Mon- due to firm demand for high grade seaborne ore as it day 3rd July, from a recent low of RMB35/t on Thurs- had been available at a discount to portside prices. day 1st June, as mills chase high grade fines.

Domestic Iron Ore Mine Conc. Output (ktpd) Domestic Iron Ore Mine Conc. Stocks (Mt)

460 10 440 8 420 400 6 Thousands 380 360 4 340 2 320 300 0

Chinese iron ore conc. output fell 3.3% month-on- Chinese mine stocks of iron ore concentrate edged month to 429kt per day on 22nd June 2017, as some lower as a result of firm domestic consumption and mines were unable to compete with lower prices. relatively lower output over the past month.

BF Capacity Utilization vs. Profitability (%) Blast Furnace Iron Ore Burden (%)

100% 89% 14.0% 78.0% [LHS]Profitability [RHS]Capacity Utilization [LHS] Pellet [RHS] Sinter 80% 87% 77.0% 13.0% 76.0% 60% 85% 12.0% 75.0% 40% 83% 74.0% 20% 81% 11.0% 73.0% 0% 79% 10.0% 72.0%

Chinese blast furnaces increased capacity utilization Sinter composition in Chinese blast furnace burdens to 84.60% on 29th June 2017, from 83.53% on 1st increased to a 4-month high of 75.5%, as mills have June, in response to robust steel profit margins. recently scaled back their consumption of lump ore.

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Mills’ Iron Ore Consumption to Hand (Days) Structure of Iron Ore Port Stocks

40 155 30% Pellet Sinter IO Port Stock High Grade Aus. Fine 35 135 25% 30 25 115 20% 20 95 15% 15 10 75 10%

Mills’ iron ore fines consumption to hand increased Inventories of relatively high grade Australian iron ore to 25 days on 28th June, as healthier steel margins fines as a percentage of overall stocks have increased encouraged some steel producers to restock. to 21.5% on 26th June, from 19.9% on 22nd May.

Mills’ Iron Ore Inventory Structure (Mt) Chinese Iron Ore Run-of-Mine Fe Output (%)

12 34 Mill Port Seaborne 32 10 30 28 8 26 6 24 22 4 20

Chinese mills’ seaborne and port stocks of iron ore Mysteel calculates average Fe of local iron ore run-of- have jumped from recent lows in response to robust mine has slipped to 29.38% in mid- to late-June, as arrivals and shipments over the past month. some unprofitable mines scaled back output.

Mills’ Sinter Ore Fe Grade (%) Content of Imported Ore in Sinter (%)

56.0% 94% 55.8% 92% 55.6% 55.4% 90% 55.2% 88% 55.0% 86% 54.8% 54.6% 84% 54.4% 82%

Unsurprisingly, the iron content in sinter has remained Lower domestic iron ore output and increased arrivals relatively high (55.6%) as mills increase the productiv- of seaborne material have resulted in an increase in ity and efficiency of their blast furnaces. imported iron ore content in local sinter production.

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Maintenance & Restrictions 8

Liaoning province demolishes 66 enterprises producing substandard steel products

Liaoning province has demolished 66 enterprises which produce steel products below government stand- ards, according to local newswires. Mysteel understands that Liaoning province achieved the objective of eliminating “unlabeled” steel capacity to schedule. Elsewhere, Tangshan, the city with the greatest concen- tration of iron and steel capacity, faces great pressure on the task of eliminating excess iron, coal and steel capacity. Tangshan city must cut 10.06Mt of steelmaking, 5.7Mt of ironmaking, 1.5Mt of thermal coal and 3.6Mt of coking coal capacity in 2017. Mysteel believes that Tangshan city has shut down or demolished 7 converters and 6 blast furnaces, with a capacity of 4.67Mt steelmaking and 3.81Mt ironmaking up to 29th June 2017. Therefore, Tangshan city has completed just over half of its annual de-capacity targets.

Elsewhere, Jiangxi Provincial Standing Committee executive vice governor, Mao Weiming, presided over a meeting on 6th July 2017 on the topic of tackling de-capacity of the provinces coal sector. Executive vice governor Mao Weiming pointed noted that the provincial government has closed down 232 coal mines with 15.47Mt coal capacity in 2016, while it plans to shut down 52 coal mines with approximately 2.79Mt of capacity in 2017. Mao Weiming directed the committee to focus on meeting de-capacity targets and also resettlement of 5,000 affected workers to ensure social harmony and stability. At the same time, the Pro- vincial Standing Committee also committed to strict ongoing supervision to prevent any closed coal mines from restarting.

Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

Steel Mill BF Utilization Rate % 85.34 84.60 0.7% 84.62 0.7% 85.25 0.1% Blast Furnace BF Operating Rate % 77.76 77.07 0.7% 76.93 0.8% 79.42 -1.7% Maintenance* BF Maintenance Volume m³ 110,964 116,574 -4.8% 116,364 -4.6% 111,623 -0.6% Molten Iron Output Reduced due to BF Maintenance 10,000t/d 32.52 33.97 -4.3% 34.03 -4.4% 30.20 7.7% Reduced Output due to BF Maintenance and Restrictions 10,000t/d 46.27 46.31 -0.1% 48.56 -4.7% 49.53 -6.6% Number of Mills Under BF Maintenance # 78 79 -1.3% 80 -2.5% 68 14.7% Profitable Steel Mills % 83.44 83.44 0.0% 84.05 -0.6% 68.71 14.7% *Nationwide 163 sample mills blast furnace survey; accounting for 80% of crude steel output in 2012 Hebei BF Operating Rate % 80.63 79.68 0.9% 78.73 1.9% 85.40 -4.8% Blast Furnace BF Maintenance Volume m³ 36,885 39,285 -6.1% 42,825 -13.9% 31,060 18.8% Survey* Molten Iron Output Reduced due to BF Maintenance 10,000t/d 11.60 12.23 -5.2% 13.27 -12.6% 9.14 26.9% Reduced Output due to BF Maintenance and Restrictions 10,000t/d 15.33 15.60 -1.7% 16.45 -6.8% 14.42 6.3% Number of Mills Under BF Maintenance # 37 37 0.0% 40 -7.5% 29 27.6% Profitable Steel Mills % 79.45 79.45 0.0% 80.82 -1.4% 78.08 1.4% *Provincial 72 sample mills blast furnace survey Blast Furnace Lump Burden Ratio % 11.62 11.65 0.0% 11.85 -0.2% 12.27 -0.7% Iron Burden Pellet Burden Ratio % 12.84 12.87 0.0% 13.02 -0.2% 11.82 1.0% Ratio* Sinter Burden Ratio % 75.54 75.48 0.1% 75.13 0.4% 75.91 -0.4% Molten Iron/Hot Metal Production Cost** RMB/t 1,840 1,848 -0.4% 1,917 -4.0% 1,292 42.4% *Provincial 64 sample mills blast furnace survey, **excl. VAT Data Updated: 07/07/2017

BF Size (m³) Fengnan Fengrun Yutian Guye Kaiping Qianxi Qian’an Luanxian Leting Total

Tangshan 450 4 1 1 - 2 - 10 3 - 21 Blast Furnace 480 ------2 - - 2 Maintenance* 500 - - 1 ------1 520 ------580 1 - - - - - 1 - - 2 600 2 ------2 660 ------680 ------1080 ------1 2 - 3 1280 ------1350 ------1580 ------1780 ------1 1 Quantity # 7 1 2 - 2 - 14 5 1 32 Volume m³ 3,580 450 950 - 900 - 7,120 3,510 1,780 18,290 *Provincial 164 sample mills blast furnace survey Data Updated: 07/07/2017

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Death at Rio Tinto’s Yandicoogina mine in West Australia

A mine worker died at Rio Tinto’s Yandicoogina mine in the Pilbara region of West Australia on Tuesday 4th July 2017. This incident was reported to police around midday. Police have confirmed that the man, believed to be in his early 50s, died after what Rio Tinto described as a “serious incident”. Police and the department of mines and petroleum have been investigating the incident. “The company will provide all the necessary support for the employee’s family and colleagues during this difficult time.” Rio said in a state- ment released that afternoon, but the company could not release further information about this accident.

Rio Tinto’s Yandicoogina mine is located in the area that produces its Yandi fines product, which is located about 100 kilometers north-west of Newman. Average shipment volumes in the first five month totaled about 4.33Mt, of which 1.29Mt was delivered to China under long-term supply agreements, according to Mysteel’s bespoke weekly iron ore shipments statistics. In fact, Rio Tinto experienced a similar accident in June 2016 whereby an accident resulted in a mine shut down for around 3 days; partially impacting produc- tion volumes.

Mysteel Survey Ports Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

Iron Ore Arrived Vessels Qingdao # 7 7 0.0% 13 -46.2% 15 -53.3% Arrivals at Arrived Vessels Rizhao # 14 13 7.7% 18 -22.2% 10 40.0% Six Main Arrived Vessels Lianyungang # 4 9 -55.6% 17 -76.5% 10 -60.0% N. China Ports Arrived Vessels Tianjin # 8 19 -57.9% 3 166.7% 16 -50.0% Arrived Vessels Caofeidian # 17 21 -19.0% 5 240.0% 15 13.3% Arrived Vessels Jingtang # 14 19 -26.3% 5 180.0% 18 -22.2% Quantity of Arrivals Qingdao Mt 1.54 1.32 16.4% 1.97 -22.0% 2.13 -28.0% Quantity of Arrivals Rizhao Mt 1.81 2.10 -13.8% 2.70 -33.0% 1.72 5.6% Quantity of Arrivals Lianyungang Mt 0.54 1.20 -55.2% 2.66 -79.7% 1.73 -68.8% Quantity of Arrivals Tianjin Mt 1.32 1.96 -32.9% 0.40 232.3% 2.20 -40.1% Quantity of Arrivals Caofeidian Mt 2.30 2.66 -13.4% 0.77 198.8% 2.33 -1.3% Quantity of Arrivals Jingtang Mt 1.77 1.90 -7.3% 0.63 181.1% 2.77 -36.3% Est. Arrival of Vessels Qingdao # 7 7 0.0% 12 -41.7% 13 -46.2% Est. Arrival of Vessels Rizhao # 1 8 -87.5% 4 -75.0% 6 -83.3% Est. Arrival of Vessels Lianyungang # 9 4 125.0% 15 -40.0% 13 -30.8% Est. Arrival of Vessels Tianjin # 12 6 100.0% 2 500.0% 10 20.0% Est. Arrival of Vessels Caofeidian # 19 13 46.2% 5 280.0% 7 171.4% Est. Arrival of Vessels Jingtang # 5 6 -16.7% 4 25.0% 9 -44.4% Quantity of Est. Arrival Qingdao Mt 1.38 1.38 0.4% 2.03 -31.8% 2.04 -32.4% Quantity of Est. Arrival Rizhao Mt 0.08 1.07 -92.5% 0.60 -86.6% 0.93 -91.4% Quantity of Est. Arrival Lianyungang Mt 1.68 0.62 172.3% 2.18 -22.7% 2.03 -17.3% Quantity of Est. Arrival Tianjin Mt 1.95 0.93 110.4% 0.29 565.5% 1.58 23.6% Quantity of Est. Arrival Caofeidian Mt 2.62 2.05 28.2% 0.51 414.5% 0.82 221.2% Quantity of Est. Arrival Jingtang Mt 0.89 0.93 -3.9% 0.64 40.1% 1.30 -31.7% Data Updated: 30/06/2017

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Mysteel Survey Ports Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y %

Dispatched Vessels Sailed Tubarao # 9 12 -25.0% 11 -18.2% 9 0.0% Iron Ore Vessels Sailed Guaiba Island Terminal # 4 4 0.0% 4 0.0% 5 -20.0% from Main Vessels Sailed CPBS # 2 3 -33.3% 3 -33.3% 4 -50.0% Brazilian Vessels Sailed Ponta da Madeira # 16 11 45.5% 12 33.3% 9 77.8% Ports Vessels Sailed CSN Terminal # 2 3 -33.3% 2 0.0% 3 -33.3% Vessels Sailed Ferroport Terminal # 2 1 100.0% 1 100.0% 1 100.0% Vessels Sailed Porto Sudeste # 1 1 0.0% 2 -50.0% 1 0.0% Total Shipments Tubarao Mt 1.73 2.08 -16.9% 1.57 9.9% 1.82 -4.9% Total Shipments Guaiba Island Terminal Mt 0.77 0.87 -11.5% 0.87 -11.5% 0.90 -13.9% Total Shipments CPBS Mt 0.36 0.54 -32.3% 0.56 -34.9% 0.64 -43.4% Total Shipments Ponta da Madeira Mt 3.63 2.42 49.9% 2.73 33.0% 1.97 83.6% Total Shipments CSN Terminal Mt 0.39 0.50 -21.8% 0.34 15.0% 0.54 -27.4% Total Shipments Ferroport Terminal Mt 0.34 0.18 91.4% 0.17 97.1% 0.17 94.7% Total Shipments Porto Sudeste Mt 0.17 0.17 -5.2% 0.34 -51.2% 0.17 -4.1% Est. Dispatch of Vessels Tubarao # 10 10 0.0% 9 11.1% 8 25.0% Est. Dispatch of Vessels Guaiba Island Terminal # 5 6 -16.7% 4 25.0% 3 66.7% Est. Dispatch of Vessels CPBS # 1 2 -50.0% 1 0.0% 2 -50.0% Est. Dispatch of Vessels Ponta da Madeira # 12 16 -25.0% 13 -7.7% 12 0.0% Est. Dispatch of Vessels CSN Terminal # 2 3 -33.3% 3 -33.3% 5 -60.0% Est. Dispatch of Vessels Ferroport Terminal # 1 2 -50.0% 2 -50.0% 6 -83.3% Est. Dispatch of Vessels Porto Sudeste # 2 2 0.0% 1 100.0% - #DIV/0! Quantity of Est. Dispatch Tubarao Mt 1.84 1.92 -4.0% 1.93 -4.8% 1.49 23.5% Quantity of Est. Dispatch Guaiba Island Terminal Mt 0.94 1.20 -21.7% 0.88 7.3% 0.52 80.9% Quantity of Est. Dispatch CPBS Mt 0.17 0.36 -53.3% 0.14 23.2% 0.34 -49.5% Quantity of Est. Dispatch Ponta da Madeira Mt 2.69 3.82 -29.6% 3.05 -12.0% 1.97 36.2% Quantity of Est. Dispatch CSN Terminal Mt 0.37 0.58 -35.1% 0.53 -29.0% 0.84 -55.3% Quantity of Est. Dispatch Ferroport Terminal Mt 0.18 0.34 -47.8% 0.36 -50.7% 0.97 -81.9% Quantity of Est. Dispatch Porto Sudeste Mt 0.25 0.33 -25.3% 0.17 47.6% - #DIV/0! Dispatched Vessels Sailed Dampier # 14 16 -12.5% 11 27.3% 15 -6.7% Iron Ore Vessels Sailed Walcott # 24 21 14.3% 19 26.3% 20 20.0% from Main Vessels Sailed Hedland # 53 51 3.9% 56 -5.4% 44 20.5% Australian Vessels Sailed Esperance # 1 2 -50.0% 1 0.0% 1 0.0% Ports Vessels Sailed Geraldton # 1 1 0.0% 1 0.0% - #DIV/0! Vessels Sailed Geraldton-Karara # 3 4 -25.0% 3 0.0% 3 0.0% Total Shipments Dampier Mt 2.41 2.74 -11.9% 1.89 28.1% 2.55 -5.2% Total Shipments Walcott Mt 4.42 3.69 19.8% 3.39 30.1% 3.80 16.3% Total Shipments Hedland Mt 9.72 9.45 2.9% 10.63 -8.6% 8.07 20.5% Total Shipments Esperance Mt 0.18 0.32 -43.7% 0.18 1.1% 0.16 11.3% Total Shipments Geraldton Mt 0.06 0.06 0.0% 0.06 0.0% - #DIV/0! Total Shipments Geraldton-Karara Mt 0.18 0.24 -25.0% 0.18 0.0% 0.18 0.0% Shipments to China Dampier Mt 2.41 2.36 2.3% 1.74 39.1% 1.84 31.2% Shipments to China Walcott Mt 3.12 2.49 25.3% 1.60 94.3% 2.99 4.1% Shipments to China Hedland Mt 8.82 8.39 5.1% 9.24 -4.5% 6.92 27.5% Shipments to China Esperance Mt - 0.17 0.0% 0.18 0.0% 0.16 0.0% Shipments to China Geraldton Mt 0.06 0.06 0.0% 0.06 0.0% - #DIV/0! Shipments to China Geraldton-Karara Mt 0.12 0.24 -50.0% 0.18 -33.3% 0.18 -33.3% Est. Dispatch of Vessels Dampier # 14 15 -6.7% 13 7.7% 15 -6.7% Est. Dispatch of Vessels Walcott # 25 26 -3.8% 24 4.2% 18 38.9% Est. Dispatch of Vessels Hedland # 45 50 -10.0% 51 -11.8% 39 15.4% Est. Dispatch of Vessels Esperance # 1 1 0.0% 1 0.0% - #DIV/0! Est. Dispatch of Vessels Geraldton # 2 1 100.0% - #DIV/0! 2 0.0% Est. Dispatch of Vessels Geraldton-Karara # 3 3 0.0% - #DIV/0! 1 200.0% Quantity of Est. Dispatch Dampier Mt 2.38 2.59 -8.1% 2.21 7.7% 2.55 -6.7% Quantity of Est. Dispatch Walcott Mt 4.43 4.49 -1.2% 4.08 8.7% 3.10 43.0% Quantity of Est. Dispatch Hedland Mt 8.21 9.31 -11.8% 9.52 -13.7% 7.20 14.1% Quantity of Est. Dispatch Esperance Mt 0.18 0.16 10.0% 0.18 0.0% - #DIV/0! Quantity of Est. Dispatch Geraldton Mt 0.12 0.06 100.0% - #DIV/0! 0.12 0.0% Quantity of Est. Dispatch Geraldton-Karara Mt 0.18 0.18 0.0% - #DIV/0! 0.06 200.0% Data Updated: 30/06/2017

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Mysteel Survey Units Latest Prev. P/P % Prev. Month M/M % Prev. Year Y/Y %

Nationwide* Total Output 10,000tpd 42.50 42.93 -1.0% 43.90 -3.2% 40.70 4.4% Utilization Rate % 65.80 66.50 -0.7% 68.00 -2.2% 63.20 2.6% >1Mtpy* Total Output 10,000tpd 7.20 7.28 -1.1% 7.33 -1.8% 7.00 2.9% Utilization Rate % 59.00 59.80 -0.8% 60.20 -1.2% 57.10 1.9% Total Stockpile 10,000tpd 36.00 42.00 -14.3% 46.00 -21.7% 56.00 -35.7% Number of Mines # 19.00 19.00 - 19.00 - 19.00 - 0.3-1Mtpy* Total Output 10,000tpd 1.30 1.21 7.4% 1.26 3.2% 0.70 85.7% Utilization Rate % 26.60 24.70 1.9% 25.70 0.9% 14.50 12.1% Total Stockpile 10,000tpd 23.00 20.00 15.0% 18.00 27.8% 18.00 27.8% Number of Mines # 28.00 28.00 - 28.00 - 28.00 - <0.3Mtpy* Total Output 10,000tpd 0.20 0.21 -4.8% 0.21 -4.8% 0.10 100.0% Utilization Rate % 16.50 20.30 -3.8% 20.30 -3.8% 12.90 3.6% Total Stockpile 10,000tpd 15.00 16.00 -6.3% 16.00 -6.3% 19.00 -21.1% Number of Mines # 23.00 23.00 - 23.00 - 23.00 - *266 mines in total; annual concentrate capacity of 228Mt, accounting for 51.8% of domestic concentrate output capacity in 2014.

Nationwide** Total Output 10,000tpd 8.65 8.70 -0.6% 8.80 -1.7% 7.80 10.9% Utilization Rate % 47.80 48.10 -0.3% 48.60 -0.8% 43.10 4.7% Total Stockpile 10,000tpd 74.00 77.00 -3.9% 80.00 -7.5% 93.00 -20.4% Number of Mines # 70.00 70.00 - 70.00 - 70.00 - NE China** Total Output 10,000tpd 0.77 0.81 -4.9% 0.81 -4.9% 0.70 10.0% Utilization Rate % 44.30 46.60 -2.3% 46.60 -2.3% 42.80 1.5% Total Stockpile 10,000tpd 19.00 21.00 -9.5% 22.00 -13.6% 35.00 -45.7% Number of Mines # 14.00 14.00 - 14.00 - 14.00 - Hebei** Total Output 10,000tpd 5.01 5.00 0.2% 5.00 0.2% 4.80 4.4% Utilization Rate % 57.90 57.70 0.2% 57.70 0.2% 55.80 2.1% Total Stockpile 10,000tpd 4.00 4.00 0.0% 8.00 -50.0% 35.00 -88.6% Number of Mines # 25.00 25.00 - 25.00 - 25.00 - N. China** Total Output 10,000tpd 0.87 0.79 10.1% 0.79 10.1% 0.60 45.0% Utilization Rate % 31.80 28.80 3.0% 28.80 3.0% 21.20 10.6% Total Stockpile 10,000tpd 23.00 23.00 0.0% 22.00 4.5% 16.00 43.8% Number of Mines # 15.00 15.00 - 15.00 - 15.00 - E. China** Total Output 10,000tpd 1.36 1.46 -6.8% 1.56 -12.8% 1.20 13.3% Utilization Rate % 60.20 64.60 -4.4% 69.00 -8.8% 54.90 5.3% Total Stockpile 10,000tpd 15.00 18.00 -16.7% 19.00 -21.1% 7.00 114.3% Number of Mines # 6.00 6.00 - 6.00 - 6.00 - S. China** Total Output 10,000tpd 0.64 0.64 0.0% 0.64 0.0% 0.40 60.0% Utilization Rate % 23.70 23.70 0.0% 23.70 0.0% 14.80 8.9% Total Stockpile 10,000tpd 13.00 11.00 18.2% 9.00 44.4% 1.00 1200.0% Number of Mines # 10.00 10.00 - 10.00 - 10.00 - **70 mines in total (excluding steel mills` affiliated mining companies), annual concentrate capacity of 62Mtpy, accounting for 18% of domestic concentrate output in 2014. Data Updated: 07/07/2017

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Slower arrivals and robust daily offtakes result in declining Chinese iron ore inventories

Slower arrivals of overseas iron ore shipments partly resulted in a modest decline in major Chinese port stocks over the past week, particularly at the Caofeidian and Fangcheng ports. Mysteel also recorded a noticeable decline in iron ore inventories at the major Chinse ports of Lanshan and Qingdao, which had been closed to navigation due to the onset of heavy fog. Unsurprisingly, major iron ore inventories have decreased 1.84Mt or 1.3% week-on-week to 142.29Mt on Friday 7th July 2017.

At the same time, Mysteel recorded an increase in daily iron ore offtakes due to robust demand from local mills. For example, we understand some mills in northern China have resumed output following the conclu- sion of regular maintenance programmes. As a result, daily iron ore offtakes increased 2.7% week-on-week to 2.912Mt across the 45 major ports that Mysteel surveys in the week end 7th July 2017. Unsurprisingly, Mysteel’s national blast furnace capacity utilization survey showed rates increased 0.76% to 85.34% over the same period.

Mysteel Survey Units Latest Prev. P/P % Prev. Month M/M % Prev. Year Y/Y %

Iron Ore Pellet Mt 1.66 1.49 11.4% 1.71 -2.9% 4.20 -60.5% Inventories* Concentrate Mt 10.78 10.45 3.2% 9.66 11.6% 5.70 89.1% Lump Mt 15.22 14.71 3.5% 14.09 8.0% 13.52 12.6% Fines Mt 114.63 117.48 -2.4% 118.65 -3.4% 83.15 37.9% Total Port Stocks Mt 142.29 144.13 -1.3% 144.11 -1.3% 106.57 33.5% Australian Iron Ore Mt 75.15 76.32 -1.5% 75.07 0.1% 58.71 28.0% Brazilian Iron Ore Mt 31.29 31.42 -0.4% 31.98 -2.2% 22.14 41.3% *45 Sampled Ports in China Coking Coal Imported Coking Coal at Chinese Ports Mt 3.23 2.93 10.4% 2.78 16.3% 1.96 64.9% and Coke Coking Coal Stocks at 50 Sampled Steel Mills Mt - - 0.0% 5.22 0.0% 5.61 0.0% Inventories Independent Coking Coal Stocks 100 Samples Mt 6.53 6.50 0.4% 6.33 3.1% 5.97 9.4% Coking Plant Coal Inventories* Mt 6.49 6.58 -1.4% 7.18 -9.7% 7.79 -16.7% Average Days of Coking Plant Coal Consumption* Days 12.92 13.10 -1.4% 14.30 -9.7% 15.79 -18.2% PCI Stocks at 50 Sampled Steel Mills Mt - 1.95 0.0% 2.14 0.0% 1.97 0.0% Tianjin Coke Port Stocks Mt 0.94 0.96 -2.1% 1.00 -6.0% 1.91 -50.8% Steel Mill Coke Inventories* Mt 4.34 4.39 -1.1% 4.03 7.6% 3.52 23.2% Average Days of Mill Coke Consumption* Days 12.36 12.49 -1.0% 11.46 7.9% 10.54 17.3% *110 Sampled Steel Mills Steel Mill Average Mill Iron Ore Inventories Days 25 22 13.6% 23 8.7% 24 4.2% Iron Ore Domestic Sinter Feed Concentrate Stock Mt 0.72 0.74 -2.9% 0.80 -9.3% 0.68 6.9% Inventories Domestic Sinter Feed Concentrate Total Consumption Mt 0.09 0.09 -5.8% 0.09 -5.9% 0.07 19.5%

Steel Rebar Mt 3.90 3.88 0.6% 3.90 0.1% 3.67 6.4% Products Wire Rod Mt 1.13 1.14 -0.8% 1.25 -9.2% 1.04 8.7% Inventories HRC Mt 2.26 2.37 -4.8% 2.73 -17.4% 1.81 24.5% Medium Plate Mt 1.00 1.01 -0.8% 1.11 -9.5% 0.87 14.5% CRC Mt 1.10 1.12 -2.0% 1.15 -4.0% 1.23 -10.2% Data Updated: 07/07/2017

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Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao Days - - 0.0% - 0.0% - 0.0% 3,000 Rizhao Days 4.50 2.00 125.0% - #DIV/0! 3.50 28.6% 1,800 Caofeidian Days 2.00 2.00 0.0% 4.00 -50.0% - #DIV/0! 2,040 Jingtang Days 4.00 4.00 0.0% 4.00 0.0% 1.00 300.0% 1,600 Lianyungang Days - - 0.0% - 0.0% 1.50 0.0% 800 Tianjin Days - - 0.0% - 0.0% - 0.0% 1,200 Lanshan Days 2.00 - #DIV/0! - #DIV/0! 2.00 0.0% 650 Fangchenggang Days - - 0.0% - 0.0% - 0.0% 1,300 Zhenjiang Days - - 0.0% - 0.0% - 0.0% 500 Dalian Days - - 0.0% - 0.0% - 0.0% 550 Yantai Days - - 0.0% - 0.0% - 0.0% 350 Beilun Days 2.00 - #DIV/0! - #DIV/0! - #DIV/0! 500 Bayuquan Days - - 0.0% 3.00 0.0% - 0.0% 400 Taicang Days - - 0.0% - 0.0% - 0.0% 300 Nantong Days 2.00 2.00 0.0% - #DIV/0! 2.00 0.0% 260 Rugao Days - - 0.0% - 0.0% - 0.0% 350 Zhanjiang Days - - 0.0% - 0.0% - 0.0% 650 Luojing Days - - 0.0% 3.00 0.0% - 0.0% 220 Nanjing Days - - 0.0% - 0.0% - 0.0% 200 Jiangyin Days - - 0.0% - 0.0% 6.00 0.0% 200 Xiamen Days - - 0.0% - 0.0% 50.00 0.0% 150 Fuzhou Days - - 0.0% - 0.0% - 0.0% 280 Zhangjiagang Days 1.00 - #DIV/0! - #DIV/0! - #DIV/0! 100 Qinhuangdao Days - - 0.0% - 0.0% - 0.0% 400 Quanzhou Days - - 0.0% - 0.0% - 0.0% 150 Qinzhou Days - - 0.0% - 0.0% - 0.0% 180 Changzhou Days - - 0.0% - 0.0% - 0.0% 180 Dandong Days - - 0.0% - 0.0% - 0.0% 300 Mawan Days - - 0.0% - 0.0% - 0.0% 75 Longkou Days - - 0.0% - 0.0% - 0.0% 400 Guangzhou Days - - 0.0% - 0.0% - 0.0% 215 Original Standard Days ------Gaolan Days - - 0.0% - 0.0% - 0.0% 100 Shekou Days - - 0.0% - 0.0% - 0.0% 50 Taizhou Days - - 0.0% - 0.0% - 0.0% 200 Majishan Days - - 0.0% - 0.0% - 0.0% 350 Jinzhou Days - - 0.0% - 0.0% - 0.0% 100 Yangzhou Days - - 0.0% - 0.0% - 0.0% 200 Huanghua Days 3.00 3.00 0.0% 3.00 0.0% - #DIV/0! 300 Zhoushanwu Days - - 0.0% - 0.0% - 0.0% 90 Weifang Days - - 0.0% - 0.0% - 0.0% 40 Laizhou Days - - 0.0% - 0.0% - 0.0% 40 41 Ports Total Days ------Lanqiao Days - - 0.0% - 0.0% - 0.0% 500 Meijin Days - - 0.0% - 0.0% - 0.0% 100 Putian Days - - 0.0% - 0.0% - 0.0% 50 Maweigang Days - - 0.0% - 0.0% - 0.0% 30 45 Ports Total Days ------Data Updated: 07/07/2017

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Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao 10,000t 761 768 -0.9% 780 -2.4% 542 40.4% 3,000 Rizhao 10,000t 716 718 -0.3% 730 -1.9% 594 20.5% 1,800 Caofeidian 10,000t 973 1,005 -3.2% 977 -0.4% 1,024 -5.0% 2,040 Jingtang 10,000t 1,033 1,040 -0.7% 894 15.5% 793 30.3% 1,600 Lianyungang 10,000t 399 410 -2.7% 405 -1.5% 324 23.1% 800 Tianjin 10,000t 529 512 3.3% 600 -11.8% 490 8.0% 1,200 Lanshan 10,000t 415 419 -1.0% 421 -1.4% 358 15.9% 650 Fangchenggang 10,000t 133 146 -8.9% 170 -21.8% 30 343.3% 1,300 Zhenjiang 10,000t 189 185 2.2% 149 26.8% 108 75.0% 500 Dalian 10,000t 118 120 -1.7% 110 7.3% 46 156.5% 550 Yantai 10,000t 17 12 41.7% 28 -39.3% 42 -59.5% 350 Beilun 10,000t 353 345 2.3% 324 9.0% 261 35.2% 500 Bayuquan 10,000t 259 268 -3.4% 261 -0.8% 102 153.9% 400 Taicang 10,000t 193 184 4.9% 148 30.4% 167 15.6% 300 Nantong 10,000t 43 67 -35.8% 83 -48.2% 95 -54.7% 260 Rugao 10,000t 24 22 9.1% 21 14.3% 37 -35.1% 350 Zhanjiang 10,000t 11 25 -55.6% 42 -73.1% 62 -81.8% 650 Luojing 10,000t 120 115 4.3% 110 9.1% 45 166.7% 220 Nanjing 10,000t 6 7 -15.4% 22 -75.0% 15 -63.3% 200 Jiangyin 10,000t 274 289 -5.1% 255 7.6% 102 168.9% 200 Xiamen 10,000t 53 41 29.0% 34 55.9% 3 1666.7% 150 Fuzhou 10,000t 60 62 -3.2% 65 -7.7% 52 15.4% 280 Zhangjiagang 10,000t 32 38 -15.8% 58 -44.8% 23 39.1% 100 Qinhuangdao 10,000t 38 44 -12.8% 24 58.3% 32 18.8% 400 Quanzhou 10,000t 2 3 -23.3% - #DIV/0! 11 -79.1% 150 Qinzhou 10,000t - - 0.0% - 0.0% - 0.0% 180 Changzhou 10,000t 31 31 0.0% 20 55.0% 24 29.2% 180 Dandong 10,000t 86 95 -9.5% 94 -8.5% 35 145.7% 300 Mawan 10,000t - - 0.0% - 0.0% - 0.0% 75 Longkou 10,000t 3 3 0.0% 3 -16.7% 10 -75.0% 400 Guangzhou 10,000t 16 14 14.3% 17 -5.9% 12 33.3% 215 Original Standard 10,000t 6,887 6,987 -1.4% 6,846 0.6% 5,486 25.5% - Gaolan 10,000t 6 6 0.0% 6 0.0% 6 0.0% 100 Shekou 10,000t - - 0.0% - 0.0% - 0.0% 50 Taizhou 10,000t 6 6 0.0% 1 500.0% 1 500.0% 200 Majishan 10,000t 128 130 -1.5% 156 -17.9% 149 -14.1% 350 Jinzhou 10,000t 31 31 0.0% 41 -24.4% 12 158.3% 100 Yangzhou 10,000t 2 3 -40.0% 5 -70.0% 7 -78.6% 200 Huanghua 10,000t 168 147 14.3% 163 3.1% 40 320.0% 300 Zhoushanwu 10,000t 69 71 -3.1% 75 -8.0% 56 23.2% 90 Weifang 10,000t 16 19 -16.7% 8 100.0% 5 220.0% 40 Laizhou 10,000t - - 0.0% - 0.0% 2 0.0% 40 41 Ports Total 10,000t 7,312 7,400 -1.2% 7,301 0.2% 5,763 26.9% - Lanqiao 10,000t 152 181 -16.0% 156 -2.6% 71 114.1% 500 Meijin 10,000t 41 41 0.0% 41 0.0% 19 115.8% 100 Putian 10,000t 10 10 0.0% 10 0.0% 10 0.0% 50 Maweigang 10,000t - - 0.0% - 0.0% 8 0.0% 30 45 Ports Total 10,000t 7,515 7,632 -1.5% 7,507 0.1% 5,871 28.0% - Data Updated: 07/07/2017

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Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao 10,000t 624 629 -0.8% 620 0.6% 312 100.0% 3,000 Rizhao 10,000t 336 312 7.7% 336 0.0% 143 135.0% 1,800 Caofeidian 10,000t 556 580 -4.1% 540 3.0% 306 81.7% 2,040 Jingtang 10,000t 108 108 0.0% 96 12.5% 9 1100.0% 1,600 Lianyungang 10,000t 221 208 6.3% 202 9.4% 212 4.2% 800 Tianjin 10,000t 55 49 12.2% 70 -21.4% 36 52.8% 1,200 Lanshan 10,000t 66 71 -7.0% 78 -15.4% 30 120.0% 650 Fangchenggang 10,000t 124 131 -5.3% 155 -20.0% 319 -61.1% 1,300 Zhenjiang 10,000t 14 17 -20.6% 30 -55.0% 35 -61.4% 500 Dalian 10,000t 252 250 0.8% 215 17.2% 156 61.5% 550 Yantai 10,000t 116 112 3.6% 139 -16.5% 124 -6.5% 350 Beilun 10,000t 52 45 15.6% 43 20.9% 70 -25.7% 500 Bayuquan 10,000t 25 29 -13.8% 29 -13.8% 21 19.0% 400 Taicang 10,000t 29 41 -29.3% 35 -17.1% 22 31.8% 300 Nantong 10,000t 31 17 82.4% 19 63.2% 28 10.7% 260 Rugao 10,000t 4 4 0.0% 4 0.0% 8 -50.0% 350 Zhanjiang 10,000t 154 168 -8.6% 179 -14.0% 124 24.2% 650 Luojing 10,000t 3 6 -50.0% 20 -85.0% 7 -57.1% 220 Nanjing 10,000t 9 9 -2.2% 11 -18.2% 1 800.0% 200 Jiangyin 10,000t 107 100 6.8% 140 -23.4% 61 75.7% 200 Xiamen 10,000t 4 6 -35.5% - #DIV/0! - #DIV/0! 150 Fuzhou 10,000t 38 40 -5.0% 35 8.6% 20 90.0% 280 Zhangjiagang 10,000t 14 17 -17.6% 20 -30.0% 23 -39.1% 100 Qinhuangdao 10,000t - - 0.0% - 0.0% - 0.0% 400 Quanzhou 10,000t - - 0.0% - 0.0% - 0.0% 150 Qinzhou 10,000t - - 0.0% - 0.0% - 0.0% 180 Changzhou 10,000t 10 9 11.1% 9 11.1% 3 233.3% 180 Dandong 10,000t 2 5 -60.0% - #DIV/0! 7 -71.4% 300 Mawan 10,000t - - 0.0% - 0.0% - 0.0% 75 Longkou 10,000t 6 6 0.0% 9 -38.9% 7 -21.4% 400 Guangzhou 10,000t - - 0.0% - 0.0% - 0.0% 215 Original Standard 10,000t 2,959 2,970 -0.4% 3,033 -2.4% 2,086 41.9% - Gaolan 10,000t 2 2 0.0% 2 0.0% 2 0.0% 100 Shekou 10,000t - - 0.0% - 0.0% - 0.0% 50 Taizhou 10,000t - - 0.0% - 0.0% - 0.0% 200 Majishan 10,000t 58 58 0.0% 54 7.4% 29 100.0% 350 Jinzhou 10,000t - 2 0.0% - 0.0% - 0.0% 100 Yangzhou 10,000t - - 0.0% - 0.0% - 0.0% 200 Huanghua 10,000t 31 31 0.0% 52 -40.4% 30 3.3% 300 Zhoushanwu 10,000t 22 44 -51.1% 23 -6.5% 19 13.2% 90 Weifang 10,000t - - 0.0% - 0.0% - 0.0% 40 Laizhou 10,000t - - 0.0% - 0.0% - 0.0% 40 41 Ports Total 10,000t 3,072 3,107 -1.1% 3,164 -2.9% 2,166 41.8% - Lanqiao 10,000t 55 33 66.7% 32 71.9% 39 41.0% 500 Meijin 10,000t - - 0.0% - 0.0% 7 0.0% 100 Putian 10,000t 2 2 0.0% 2 0.0% 2 0.0% 50 Maweigang 10,000t - - 0.0% - 0.0% - 0.0% 30 45 Ports Total 10,000t 3,129 3,142 -0.4% 3,198 -2.2% 2,214 41.3% - Data Updated: 07/07/2017

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Inventories of Indian Ore 16

Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao 10,000t 30 30 0.0% 30 0.0% - #DIV/0! 3,000 Rizhao 10,000t 109 118 -7.6% 99 10.1% 89 22.5% 1,800 Caofeidian 10,000t 71 74 -4.3% 70 0.7% 28 151.8% 2,040 Jingtang 10,000t 72 75 -4.0% 83 -13.3% 46 56.5% 1,600 Lianyungang 10,000t 12 12 0.0% 18 -33.3% 15 -20.0% 800 Tianjin 10,000t 14 18 -22.2% 15 -6.7% 5 180.0% 1,200 Lanshan 10,000t 16 18 -11.1% 15 6.7% 9 77.8% 650 Fangchenggang 10,000t - - 0.0% - 0.0% - 0.0% 1,300 Zhenjiang 10,000t - - 0.0% - 0.0% - 0.0% 500 Dalian 10,000t - - 0.0% - 0.0% - 0.0% 550 Yantai 10,000t - - 0.0% - 0.0% - 0.0% 350 Beilun 10,000t - - 0.0% - 0.0% - 0.0% 500 Bayuquan 10,000t 16 20 -20.0% 23 -30.4% 5 220.0% 400 Taicang 10,000t - - 0.0% - 0.0% - 0.0% 300 Nantong 10,000t 1 - #DIV/0! - #DIV/0! - #DIV/0! 260 Rugao 10,000t - - 0.0% - 0.0% - 0.0% 350 Zhanjiang 10,000t - - 0.0% - 0.0% - 0.0% 650 Luojing 10,000t - - 0.0% - 0.0% - 0.0% 220 Nanjing 10,000t - - 0.0% - 0.0% - 0.0% 200 Jiangyin 10,000t - - 0.0% - 0.0% 3 0.0% 200 Xiamen 10,000t 5 6 -10.3% 7 -25.7% - #DIV/0! 150 Fuzhou 10,000t - - 0.0% - 0.0% - 0.0% 280 Zhangjiagang 10,000t - - 0.0% - 0.0% - 0.0% 100 Qinhuangdao 10,000t - - 0.0% - 0.0% - 0.0% 400 Quanzhou 10,000t - - 0.0% - 0.0% - 0.0% 150 Qinzhou 10,000t - - 0.0% - 0.0% - 0.0% 180 Changzhou 10,000t - - 0.0% - 0.0% - 0.0% 180 Dandong 10,000t - - 0.0% 10 0.0% - 0.0% 300 Mawan 10,000t - - 0.0% - 0.0% - 0.0% 75 Longkou 10,000t 1 1 0.0% 2 -50.0% - #DIV/0! 400 Guangzhou 10,000t - - 0.0% - 0.0% - 0.0% 215 Original Standard 10,000t 347 372 -6.7% 372 -6.8% 200 73.4% - Gaolan 10,000t - - 0.0% - 0.0% - 0.0% 100 Shekou 10,000t - - 0.0% - 0.0% - 0.0% 50 Taizhou 10,000t - - 0.0% - 0.0% - 0.0% 200 Majishan 10,000t - - 0.0% - 0.0% - 0.0% 350 Jinzhou 10,000t 2 4 -50.0% 6 -66.7% - #DIV/0! 100 Yangzhou 10,000t - - 0.0% - 0.0% - 0.0% 200 Huanghua 10,000t 31 35 -11.4% 52 -40.4% 16 93.8% 300 Zhoushanwu 10,000t - - 0.0% - 0.0% - 0.0% 90 Weifang 10,000t - - 0.0% - 0.0% - 0.0% 40 Laizhou 10,000t - - 0.0% - 0.0% - 0.0% 40 41 Ports Total 10,000t 380 411 -7.5% 430 -11.7% 216 75.8% - Lanqiao 10,000t 9 9 0.0% 9 0.0% 3 200.0% 500 Meijin 10,000t - - 0.0% - 0.0% - 0.0% 100 Putian 10,000t - - 0.0% - 0.0% - 0.0% 50 Maweigang 10,000t - - 0.0% - 0.0% - 0.0% 30 45 Ports Total 10,000t 389 420 -7.3% 439 -11.5% 220 76.7% - Data Updated: 07/07/2017

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Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao 10,000t 510 530 -3.8% 550 -7.3% 284 79.6% 3,000 Rizhao 10,000t 645 632 2.1% 627 2.9% 521 23.8% 1,800 Caofeidian 10,000t 578 602 -4.0% 584 -1.0% 342 69.0% 2,040 Jingtang 10,000t 559 557 0.4% 523 6.9% 282 98.2% 1,600 Lianyungang 10,000t 311 293 6.1% 290 7.2% 265 17.4% 800 Tianjin 10,000t 370 350 5.7% 380 -2.6% 56 560.7% 1,200 Lanshan 10,000t 241 237 1.7% 205 17.6% 199 21.1% 650 Fangchenggang 10,000t 109 110 -0.9% 113 -3.5% 165 -33.9% 1,300 Zhenjiang 10,000t 256 241 6.2% 231 10.8% 180 42.2% 500 Dalian 10,000t 35 38 -7.9% 40 -12.5% 26 34.6% 550 Yantai 10,000t 30 30 0.0% 30 0.0% 55 -45.5% 350 Beilun 10,000t 97 100 -3.0% 100 -3.0% 80 21.3% 500 Bayuquan 10,000t 30 16 87.5% - #DIV/0! - #DIV/0! 400 Taicang 10,000t 60 65 -7.7% 60 0.0% 55 9.1% 300 Nantong 10,000t 19 10 90.0% 32 -40.6% 27 -29.6% 260 Rugao 10,000t 28 27 3.7% 25 12.0% 28 0.0% 350 Zhanjiang 10,000t 84 87 -3.4% 102 -17.6% 86 -2.3% 650 Luojing 10,000t 30 25 20.0% 45 -33.3% 20 50.0% 220 Nanjing 10,000t - - 0.0% - 0.0% - 0.0% 200 Jiangyin 10,000t 401 400 0.2% 395 1.5% 185 116.8% 200 Xiamen 10,000t - - 0.0% - 0.0% - 0.0% 150 Fuzhou 10,000t - - 0.0% - 0.0% - 0.0% 280 Zhangjiagang 10,000t 30 29 3.4% 34 -11.8% 15 100.0% 100 Qinhuangdao 10,000t - - 0.0% - 0.0% - 0.0% 400 Quanzhou 10,000t - - 0.0% - 0.0% - 0.0% 150 Qinzhou 10,000t 5 5 0.0% 5 2.0% 8 -36.3% 180 Changzhou 10,000t 13 10 30.0% 10 30.0% 13 0.0% 180 Dandong 10,000t - - 0.0% - 0.0% - 0.0% 300 Mawan 10,000t - - 0.0% - 0.0% - 0.0% 75 Longkou 10,000t 3 3 0.0% 3 0.0% 3 0.0% 400 Guangzhou 10,000t - - 0.0% - 0.0% - 0.0% 215 Original Standard 10,000t 4,444 4,397 1.1% 4,384 1.4% 2,896 53.5% - Gaolan 10,000t - - 0.0% - 0.0% - 0.0% 100 Shekou 10,000t - - 0.0% - 0.0% - 0.0% 50 Taizhou 10,000t 12 12 0.0% 7 71.4% 15 -20.0% 200 Majishan 10,000t 36 38 -5.3% 38 -5.3% - #DIV/0! 350 Jinzhou 10,000t - - 0.0% - 0.0% - 0.0% 100 Yangzhou 10,000t - - 0.0% - 0.0% - 0.0% 200 Huanghua 10,000t 140 109 28.4% 90 55.6% 16 775.0% 300 Zhoushanwu 10,000t 36 24 52.5% 32 12.5% 56 -35.7% 90 Weifang 10,000t - - 0.0% - 0.0% - 0.0% 40 Laizhou 10,000t - - 0.0% - 0.0% - 0.0% 40 41 Ports Total 10,000t 4,668 4,580 1.9% 4,551 2.6% 2,983 56.5% - Lanqiao 10,000t 228 246 -7.3% 230 -0.9% 103 121.4% 500 Meijin 10,000t - - 0.0% - 0.0% - 0.0% 100 Putian 10,000t - - 0.0% - 0.0% - 0.0% 50 Maweigang 10,000t - - 0.0% - 0.0% - 0.0% 30 45 Ports Total 10,000t 4,896 4,826 1.5% 4,781 2.4% 3,085 58.7% - Data Updated: 07/07/2017

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Stocks in Bonded Areas 18

Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao 10,000t 145 145 0.0% 170 -14.7% 75 93.3% 3,000 Rizhao 10,000t 20 20 0.0% 10 100.0% 20 0.0% 1,800 Caofeidian 10,000t - - 0.0% - 0.0% - 0.0% 2,040 Jingtang 10,000t 6 6 0.0% 6 1.7% - #DIV/0! 1,600 Lianyungang 10,000t 130 125 4.0% 105 23.8% 112 16.1% 800 Tianjin 10,000t 20 20 0.0% 20 0.0% 20 0.0% 1,200 Lanshan 10,000t - - 0.0% - 0.0% - 0.0% 650 Fangchenggang 10,000t - - 0.0% - 0.0% - 0.0% 1,300 Zhenjiang 10,000t - - 0.0% - 0.0% - 0.0% 500 Dalian 10,000t 190 190 0.0% 148 28.4% 39 387.2% 550 Yantai 10,000t 25 25 0.0% 25 0.0% 30 -16.7% 350 Beilun 10,000t - - 0.0% - 0.0% - 0.0% 500 Bayuquan 10,000t - - 0.0% - 0.0% - 0.0% 400 Taicang 10,000t - - 0.0% - 0.0% - 0.0% 300 Nantong 10,000t - - 0.0% - 0.0% - 0.0% 260 Rugao 10,000t - - 0.0% - 0.0% - 0.0% 350 Zhanjiang 10,000t - - 0.0% - 0.0% - 0.0% 650 Luojing 10,000t - - 0.0% - 0.0% - 0.0% 220 Nanjing 10,000t - - 0.0% - 0.0% - 0.0% 200 Jiangyin 10,000t - - 0.0% - 0.0% - 0.0% 200 Xiamen 10,000t - - 0.0% - 0.0% 2 0.0% 150 Fuzhou 10,000t - - 0.0% - 0.0% - 0.0% 280 Zhangjiagang 10,000t - - 0.0% - 0.0% - 0.0% 100 Qinhuangdao 10,000t - - 0.0% - 0.0% - 0.0% 400 Quanzhou 10,000t - - 0.0% - 0.0% - 0.0% 150 Qinzhou 10,000t - - 0.0% - 0.0% - 0.0% 180 Changzhou 10,000t 5 5 0.0% - #DIV/0! - #DIV/0! 180 Dandong 10,000t - - 0.0% - 0.0% - 0.0% 300 Mawan 10,000t - - 0.0% - 0.0% - 0.0% 75 Longkou 10,000t - - 0.0% - 0.0% - 0.0% 400 Guangzhou 10,000t - - 0.0% - 0.0% - 0.0% 215 Original Standard 10,000t 541 536 0.9% 484 11.8% 296 82.8% - Gaolan 10,000t - - 0.0% - 0.0% - 0.0% 100 Shekou 10,000t - - 0.0% - 0.0% - 0.0% 50 Taizhou 10,000t 5 5 0.0% - #DIV/0! - #DIV/0! 200 Majishan 10,000t - - 0.0% - 0.0% - 0.0% 350 Jinzhou 10,000t - - 0.0% - 0.0% - 0.0% 100 Yangzhou 10,000t - - 0.0% - 0.0% - 0.0% 200 Huanghua 10,000t - - 0.0% - 0.0% - 0.0% 300 Zhoushanwu 10,000t - - 0.0% - 0.0% - 0.0% 90 Weifang 10,000t - - 0.0% - 0.0% - 0.0% 40 Laizhou 10,000t - - 0.0% - 0.0% - 0.0% 40 41 Ports Total 10,000t 546 541 0.9% 484 12.8% 296 84.5% - Lanqiao 10,000t - - 0.0% - 0.0% - 0.0% 500 Meijin 10,000t - - 0.0% - 0.0% - 0.0% 100 Putian 10,000t - - 0.0% - 0.0% - 0.0% 50 Maweigang 10,000t - - 0.0% - 0.0% - 0.0% 30 45 Ports Total 10,000t 546 541 0.9% 484 12.8% 296 84.5% - Data Updated: 07/07/2017

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Daily Offtakes 19

Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao 10,000t 32 33 -1.5% 30 6.7% 31 1.9% 3,000 Rizhao 10,000t 21 22 -3.2% 22 -3.2% 23 -5.3% 1,800 Caofeidian 10,000t 36 34 5.3% 35 1.7% 33 6.9% 2,040 Jingtang 10,000t 34 29 16.9% 31 10.1% 31 10.1% 1,600 Lianyungang 10,000t 14 11 26.4% 10 39.0% 12 15.8% 800 Tianjin 10,000t 23 21 7.1% 23 -2.2% 26 -11.8% 1,200 Lanshan 10,000t 11 11 0.9% 9 31.4% 8 41.3% 650 Fangchenggang 10,000t 7 8 -11.4% 8 -16.7% 3 133.3% 1,300 Zhenjiang 10,000t 4 4 5.0% 4 8.3% 2 80.5% 500 Dalian 10,000t 6 4 27.9% 4 57.1% 4 57.1% 550 Yantai 10,000t 4 4 0.0% 4 0.0% 4 0.0% 350 Beilun 10,000t 9 9 0.0% 10 -10.0% 11 -15.9% 500 Bayuquan 10,000t 9 9 2.4% 8 16.0% 5 74.0% 400 Taicang 10,000t 6 7 -15.4% 6 -8.3% 4 57.1% 300 Nantong 10,000t 4 6 -31.0% 4 -2.4% 2 135.3% 260 Rugao 10,000t 2 1 7.1% 1 7.1% 1 150.0% 350 Zhanjiang 10,000t 5 6 -11.7% 5 17.8% 5 -1.9% 650 Luojing 10,000t 10 10 1.5% 10 -3.8% 4 132.6% 220 Nanjing 10,000t 0 1 -72.1% 0 310.0% 0 105.0% 200 Jiangyin 10,000t 9 9 -2.2% 9 -2.2% 4 120.0% 200 Xiamen 10,000t 2 2 0.0% 2 0.0% 58 -96.6% 150 Fuzhou 10,000t 4 6 -35.7% 4 -16.3% 4 -16.3% 280 Zhangjiagang 10,000t 2 2 0.0% 3 -20.0% 2 25.0% 100 Qinhuangdao 10,000t 1 1 33.3% 0 166.7% 1 60.0% 400 Quanzhou 10,000t 0 0 0.0% - #DIV/0! 0 0.0% 150 Qinzhou 10,000t - - 0.0% - 0.0% - 0.0% 180 Changzhou 10,000t 1 2 -60.0% 0 100.0% - #DIV/0! 180 Dandong 10,000t 2 2 0.0% 2 0.0% 3 -25.9% 300 Mawan 10,000t - - 0.0% - 0.0% - 0.0% 75 Longkou 10,000t - - 0.0% - 0.0% 0 0.0% 400 Guangzhou 10,000t 1 0 66.7% 1 -37.5% 1 -50.0% 215 Original Standard 10,000t 256 252 1.5% 244 4.9% 224 14.0% - Gaolan 10,000t - - 0.0% - 0.0% - 0.0% 100 Shekou 10,000t - - 0.0% - 0.0% - 0.0% 50 Taizhou 10,000t - - 0.0% - 0.0% 0 0.0% 200 Majishan 10,000t 7 4 82.1% 9 -18.4% 9 -22.0% 350 Jinzhou 10,000t 1 2 -42.1% 2 -45.0% 0 266.7% 100 Yangzhou 10,000t 1 0 150.0% - #DIV/0! - #DIV/0! 200 Huanghua 10,000t 14 14 0.0% 15 -6.7% 13 7.7% 300 Zhoushanwu 10,000t 5 5 8.9% 5 -2.0% 2 104.2% 90 Weifang 10,000t 1 2 -60.0% 1 -40.0% 1 -25.0% 40 Laizhou 10,000t - - 0.0% - 0.0% - 0.0% 40 41 Ports Total 10,000t 284 278 2.1% 275 3.1% 250 13.6% - Lanqiao 10,000t 6 4 43.2% 4 53.7% 5 34.0% 500 Meijin 10,000t 1 1 0.0% 1 0.0% 1 100.0% 100 Putian 10,000t - - 0.0% - 0.0% - 0.0% 50 Maweigang 10,000t - - 0.0% - 0.0% - 0.0% 30 45 Ports Total 10,000t 291.2 283 2.7% 280 3.9% 255 14.2% - Data Updated: 07/07/2017

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne Total Iron Ore Inventories 20

Mysteel Survey Units Latest Prev. Week W/W % Prev. Month M/M % Prev. Year Y/Y % Capacity

Qingdao 10,000t 1,775 1,795 -1.1% 1,795 -1.1% 1,200 47.9% 3,000 Rizhao 10,000t 1,483 1,464 1.3% 1,481 0.1% 1,009 47.0% 1,800 Caofeidian 10,000t 1,813 1,892 -4.2% 1,867 -2.9% 1,533 18.2% 2,040 Jingtang 10,000t 1,506 1,516 -0.7% 1,340 12.4% 1,120 34.5% 1,600 Lianyungang 10,000t 940 930 1.1% 920 2.2% 770 22.1% 800 Tianjin 10,000t 805 796 1.1% 970 -17.0% 775 3.9% 1,200 Lanshan 10,000t 590 619 -4.7% 605 -2.5% 428 37.9% 650 Fangchenggang 10,000t 440 470 -6.4% 515 -14.6% 347 26.8% 1,300 Zhenjiang 10,000t 399 404 -1.1% 385 3.6% 321 24.3% 500 Dalian 10,000t 452 454 -0.4% 422 7.1% 318 42.1% 550 Yantai 10,000t 142 132 7.6% 175 -18.9% 174 -18.4% 350 Beilun 10,000t 490 494 -0.8% 470 4.3% 410 19.5% 500 Bayuquan 10,000t 348 336 3.6% 335 3.9% 151 130.5% 400 Taicang 10,000t 268 265 1.1% 210 27.6% 205 30.7% 300 Nantong 10,000t 96 95 1.1% 121 -20.7% 132 -27.3% 260 Rugao 10,000t 48 48 0.0% 46 4.3% 68 -29.4% 350 Zhanjiang 10,000t 281 306 -8.2% 344 -18.4% 216 30.0% 650 Luojing 10,000t 181 173 4.6% 177 2.3% 65 178.5% 220 Nanjing 10,000t 18 21 -13.5% 43 -58.1% 22 -18.2% 200 Jiangyin 10,000t 501 510 -1.8% 518 -3.3% 233 115.0% 200 Xiamen 10,000t 68 58 16.6% 52 31.0% 62 9.8% 150 Fuzhou 10,000t 124 129 -3.9% 121 2.5% 112 10.7% 280 Zhangjiagang 10,000t 60 59 1.7% 86 -30.2% 46 30.4% 100 Qinhuangdao 10,000t 38 44 -12.8% 24 58.3% 32 18.8% 400 Quanzhou 10,000t 2 3 -23.3% 3 -23.3% 11 -79.1% 150 Qinzhou 10,000t 5 5 0.0% 5 2.0% 8 -36.3% 180 Changzhou 10,000t 44 43 2.3% 35 25.7% 28 57.1% 180 Dandong 10,000t 98 108 -9.3% 116 -15.5% 53 84.9% 300 Mawan 10,000t - - 0.0% - 0.0% - 0.0% 75 Longkou 10,000t 26 26 0.0% 30 -13.3% 23 13.0% 400 Guangzhou 10,000t 16 14 14.3% 17 -5.9% 14 14.3% 215 Original Standard 10,000t 13,057 13,208 -1.1% 13,228 -1.3% 9,881 32.1% - Gaolan 10,000t 8 8 0.0% 8 0.0% 8 0.0% 100 Shekou 10,000t - - 0.0% - 0.0% - 0.0% 50 Taizhou 10,000t 20 20 0.0% 11 81.8% 18 11.1% 200 Majishan 10,000t 262 264 -0.8% 274 -4.4% 232 12.9% 350 Jinzhou 10,000t 33 37 -10.8% 47 -29.8% 12 175.0% 100 Yangzhou 10,000t 2 3 -40.0% 5 -70.0% 7 -78.6% 200 Huanghua 10,000t 350 340 2.9% 370 -5.4% 145 141.4% 300 Zhoushanwu 10,000t 105 128 -18.0% 106 -0.9% 88 19.3% 90 Weifang 10,000t 16 19 -16.7% 8 100.0% 5 220.0% 40 Laizhou 10,000t 2 2 0.0% 2 -25.0% 4 -62.5% 40 41 Ports Total 10,000t 13,854 14,028 -1.2% 14,059 -1.5% 10,399 33.2% - Lanqiao 10,000t 315 323 -2.7% 291 8.1% 196 60.5% 500 Meijin 10,000t 41 41 0.0% 41 0.0% 42 -2.4% 100 Putian 10,000t 12 12 0.0% 12 0.0% 12 0.0% 50 Maweigang 10,000t 8 8 0.0% 8 0.0% 8 0.0% 30 45 Ports Total 10,000t 14,229 14,413 -1.3% 14,411 -1.3% 10,657 33.5% - Data Updated: 07/07/2017

Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne About Shanghai Ganglian 21

About Shanghai Ganglian Mysteel’s information includes, but is not limited Shanghai Ganglian is a professional bulk com- to, various categories, such as: modities service provider. Founded in 2000 in Shanghai, Shanghai Ganglian is the parent • HRC/CRC company of two listed subsidiaries. It has set • plate up over 30 branches around the world and • colour coated/galvanized has more than 3,000 employees. Following its • plated sheet growth over the past 17 years, Shanghai Gan- • rebar/wire rod glian is now China’s leading bulk commodities • sections information, consulting, and E-commerce ser- • pipes vice provider. Supported by its large database • strips of information, Shanghai Ganglian has built • silicon steel an integrated E-commerce ecosystem for bulk • stainless steel commodities, including: • special steel • iron ore • electronic/web-based data services • metallurgical coal • upstream & downstream industry research • thermal coal • consulting services • coke • E-commerce trading platform • ferro-alloys • smart warehousing system • scrap • informational logistics system • pig iron • supply chain financing • non-ferrous • freight Shanghai Ganglian’s services cover a wide range of commodities, including steel, iron ore, About Mysteel Iron Ore Derivatives Brokerage metallurgical coal, thermal coal & coke, non- Mysteel Singapore is the first office for Mysteel ferrous metals, energy, chemical, agricultural outside of mainland China. Mysteel Singapore produce, etc. focuses on the broking of physical and deriva- tive iron ore contracts. Leaning on the vast About Mysteel data and contacts of Mysteel, from steel mills to Mysteel, a professional E-commerce services Chinese funds, Mysteel Singapore aims to bring company, provides a real-time news portal for closer the link between mainland China and the the Chinese iron & steel market in both English rest of the world. and Mandarin. The company provides qualita- tive and quantitative information on all of the Futures & Options Brokerage Singapore markets it covers, including: Myles Clement (Futures) [email protected] • daily prices (domestic, import and export) • indices Alex Williams (Options) • production [email protected] • shipments • trade Futures & Options Brokerage Shanghai • inventories Wiliam Yang (Futures) • capacity utilization [email protected] • analysis and commentary • research Coco Wang (Options) • steelmaker directory [email protected]

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Friday 7th July 2017 Copyright © Mysteel.net, 2017. All Rights Reserved www.mysteel.ne