Iron Ore Coal & Coke Billet Scrap Ferroalloy Freight Latest News Analysis Data MYSTEEL RAW

oy Freight Latest News Analysis Data MYSTEEL RAW MATERIALS DEPARTMENT

Mysteel Raw Materials Daily

Bringing you the latest updates on China raw materials markets www.mysteel.net Friday, February 10, 2017

Currency Exchange 1 USD = 6.8635 CNY 1 USD =1.3113 AUD 1 USD=3.11917BRL ISSUE 476

Today's Highlight
USD/DMT
Mysteel IO Index (62% Fe Australia)
90
80
70
60 Chinese steel exports drop 23.2% y-o-y to 7.42 mln t in Jan
50
40 Chinas finished steel exports in January came in at 7.42 million tonnes,
30
20
shrinking 380,000 tonnes from a month earlier or declining 23% year-on-
10 year, according to data released by the General Administration of Customs.
0

MIIT repeals 35 steel companies' legal identity

China initiated its steel industrial regulation work from 2012 and from then to
USD/ton Mysteel IO INDEX VS Mysteel Shanghai Rebar Index USD/dmt
the end of 2015, Chinas central administrative organ Ministry of Industry &
600 90
80
Information Technology (MIIT) had acknowledged 304 steel companies legal
500
70 identity in three batches.
400 60
50
300
40
200 30
20
100
10
0 0 [Feb 10] Mysteel Market Price Summarization
Iron Ore
Mysteel Shanghai Rebar Index Mysteel IO Index (62% Fe Australia)
Price Chg
Mysteel Australian fines 62% Fe Index, CFR, US$/dmt 86.85 +3
Mysteel Australian fines 62% Port Price Index Price, FOT, Yuan/wmt 660 +10
Yuan/ton Rebar Closing Price VS Rebar Index Yuan/ton
Tangshan Domestic concentrates 66% Fe, Yuan/dmt, tax incl. 740 -
4000 500 DCE Iron Ore Futures Main Contract Closing Price, Yuan/mt 688 +7.00%
3500 400
3000 300 Coal & Coke
2500 200
2000 100
Tangshan prime coking coal, Yuan/ton 1,480 -
1500 0 Shanxi PCI coal, Yuan/ton (Handan, Q6000A11V9S0.5) 920 -
1000 -100 Shanxi 1st grade Metallurgical Coke, Yuan/ton, ex-works 1,725 -50
500 -200
0 -300 Billet
Tangshan square billet, 150x150 mm Yuan/t, 150x150 mm, ex- works 2,920 +60
Scrap
Price Spread Rebar Closing Price Rebar Index Jiangsu scrap price, 6-8mm, Yuan/ton 1,600 -
Ferroalloy
Ferrosilicon, 75-A, Northwest China, Yuan/ton 5,200 -
MYSTEEL RAW MATERIALS DAILY
Silicon Manganese, Mn65Si17, Yuan/ton 6,800 -
Vice President: Rebar
Zhang Yong (Evan) (+86-21-26093209) Mysteel Shanghai Rebar Price Index, HRB 400, Yuan/ton 3,372 +0.78%
SHFE Rebar Futures Main Contract Closing price, Yuan/ton 3,328 +2.75%
Mysteel Raw Materials Daily Editors:

Valeria Cheng (+86-21-26095538 chengq@mysteel.com)

Quinta Wang (+86 -21-26093621 quinta@mysteel.com)
Kimmy Hu(+86-21-66894661 huqm@mysteel.com)
Victoria Zou(+86-21-26093240 zyongjia@mysteel.com)

01 Copyright Mysteel.net, 2016. All Rights Reserved

 MYSTEEL RAW MATERIAL DAILY FRIDAY, FEBRUARY 10, 2017

Iron Ore Market Report Mysteel Iron Ore Index

Mysteel Iron Ore Index (USD/dmt)
Product Grade Index Change
[Jan 10] The imported iron ore market kept its upward tendency. Price 86.85 +3
Australian fines 62%
index of 62% Australian fines stood at CFR$86.85/dmt, up $3 (MTD
Australian fines 58% 76.5 +2.75
average at $83.22/dmt). Index of 58% Australian fines was $76.5/dmt, up
$2.75. And Index of 65% Brazilian fines index was at $100.45/dmt, hitting Brazilian fines 65% 100.45 +3

record highs. Mysteel Iron Ore Port Price Index (Yuan/wmt)

Product Grade Index Change
In the morning, offers rose by 5-10yuan/ton compared with that
Australian fines 62% 660 +10
on Thursday. The approaching of the weekend together with the
replenishment over the earlier week resulted in few bids from mills. The Australian fines 58% 559 +11
most-traded contract on DCE hit the limit-up stimulated several mills Brazilian fines 65% 772 +10
purchase demand. With the increase of mills margins, high grade ores Mysteel Lump & Pellet Premium (USD/dmtu)
were still attractive by the market. Grade Product Index Change
62.5% Lump 0.033 -
The sharp rise in futures drove the spot price and construction steel
63% Pellet 16 -
price. Tangshan billet went up 30 yuan to 2920 yuan(ex-works/incl:tax);
There were two transactions today. A cargo of 100kt PB fines traded at 65% Pellet 20 -
PB fines March index+$2.3; 70kt PB lumps traded at PB lumps March NOR [Feb 10] Mysteel Per 1% Differentials, Unit: US$/dmt
index, laycan during March 1-10 on Corex. 90kt JMBL traded at March With Min-Max $/dmt change
index+$0.3, laycan during March 6-15 on gO. Per 1% Fe 60-63.5%Fe 1.6 +0.1

Domestic iron ore market maintained stable in main producing area.

Now, the concentrates price in Tangshan area was 735-745 yuan/ton (dry Mysteel Iron Ore Survey
basis, incl. tax); the price in Qianan is at 745-755 yuan/ton (dry basis,
[Feb 10] Imported Iron Ore Port Stock, Mt
incl. tax); the price in Qianxi is at 715-725 yuan/ton (dry basis, incl. tax),
45 Sample Ports in China
and at 720-730 yuan/ton in Zunhua (dry basis, incl. tax).
Port Stock Feb 10 Jan 20 Change
-Edited by Valeria Cheng Total 128.2 119.51 7.27%
Australian Ore 68.83 64.11 7.36%
Brazilian Ore 28.05 25.31 10.83%
Ore for trading 40.2 36.52 10.08%
Pellet 2.37 2.19 8.22%
Concentrate 6.17 5.64 9.40%
Lump 18.03 16.25 10.95%

[Feb 10] Latest Transaction Report of Imported Iron Ore

[Feb 9] Steel Mill Iron Ore Stock, Mt
Product Grade Price Delivery Place
64 Sample China based steel mills
Newman Lumps 62.30% RMB702/wmt Caofeidian Port
Day Change
SSF 56.38% RMB448/450/dmt Caofeidian Port
FBF 58. 60% RMB550/dmt Caofeidian Port Imported Ore 26 -9
PB Fines 62.05% RMB657/wmt Rizhao Port Port
Jimblebar Fines 61.98% RMB668/wmt TianjinPort [Feb 9] Blast Furnace Feed Ingredients Share
Port
64 Sample China based steel mills
RobeValleyFines 57.31% RMB567/wmt Rizhao Port Port
Share Change
Pellet 12.57% -0.34%
Lump 11.39% -0.22&
Sintered Ore 76.03% 0.55%

[Feb 4] Domestic Iron Mines Operation Rate

70 Sample China domestic iron ore producers
Total Feb 4 Change
Concentrate output, 10k ton per 7.1 -1.3
day
Capacity utilization rate 39.10% -7.4
Stock in beneficiation plant,mt 610,000 80,000

02 Copyright Mysteel.net, 2016. All Rights Reserved

 MYSTEEL RAW MATERIALS DAILY FRIDAY, FEBRUARY 10, 2017

Figure 1 Domestic IO & Seaborne IO Spread in Major Provinces

Figure 2 Steel Price in Major Cities
6000
3.617Shandong
4780 4850 4930
5000 4640
2.146 Shanxi
3950 3820 3820
4000 3710 3610
2.416 Hebei 3430 3280 3290
3000
2.698 Anhui

2000
2.180 Liaoning

1000
2.231 Hubei

0
-1.736 Sichun
ShanghaiDaily GuangzhouDaily BeijingDaily ShenyangDaily
Rebar HRC CRC
SourceMysteel Dababase UnitYuan/ton/degree SourceMysteel Database UnitYuan/ton

Figure 3 Ferrous Tendency Figure 4 Mysteel Portside Spread

Tianjin Port
1.58% Coke1709 30

1.34% Coke1705 25
20
5.68% IO1709
15
7.00% IO1705 Lianyungan Caofeidian
10
g Port Port
5 62%
0.87% Coking
0 58%
0.04% Coking
65%
2.89% Rebar1709 Benchmark in
Qingdao
2.75% Rebar1705 62%

Jingtang
Rizhao Port
Port
SourceMysteel Database SourceMysteel Database UnitYuan/ton

Figure 5 Lump Premium of Futures and Port Spot Figure 6 Tangshan Billet Margin
0.6

500
0.5

300
0.4

100
0.3

0.2
-100

0.1 -300

0 -500

Futures Spot Lump Premium Port Spot Lump Premium PBF Spot Price (Caofeidian Port) Tangshan Billet Cost (ex-works)
SourceMysteel Database SourceMysteel Database UnitYuan/ton

Figure 7 Mill Rebar Margin over Billet Figure 8 IO Port & Futures Spread
700 Rebar Margins on SHFE Futures
700 50
600
650 30
500
600 10
400 550 -10

300 500 -30

200 450 -50

400 -70
100
350 -90
0
300 -110
-100
250 -130
-200

SourceMysteel Database UnitYuan/ton Source:Mysteel

Spread DCE IO Main Contract Spot Price Index

03 Copyright Mysteel.net, 2016. All Rights Reserved

 MYSTEEL RAW MATERIALS DAILY FRIDAY, FEBRUARY 10, 2017

Industry Dynamics [Feb 10] Mysteel Iron Ore Index, Unit: US$/dmt
Product Grade FOB CFR Index Change Activity MTD average
Chinese steel exports drop 23.2% Australia fines 62% 81.85 86.35-87.35 86.85 3 High 83.22
y-o-y to 7.42 mln t in Jan
Australia fines 58% 71.5 76-77 76.5 2.75 Medium 73.64
Brazilian fines 65% 88.45 99.95- 100.45 3 Medium 96.64
Chinas finished steel exports in January 100.95
came in at 7.42 million tonnes, shrinking Indian fines 63.50% 79.55 87.05-88.05 87.55(*) 3 Low 83.92
380,000 tonnes from a month earlier or Indian fines 58% 53.85 60.35-61.35 60.85 2 Low 59.02
declining 23% year-on-year, according Indian fines 56% 49.3 55.8-56.8 56.3 2 Low 54.47
to data released by the General Indian fines 52% 25.35 31.85-32.85 32.35(*) 2 Low 30.63
Administration of Customs.
Product Grade FOB CFR Index Change Activity
Newman fines 62.50% 83.05 87.55-88.55 88.05 3 High
Finished steel imports into China sit at PB fines 61.00% 80.6 85.1-86.1 85.6 3 High
1.09 million tonnes in January, which Mac fines 60.80% 78.85 83.35-84.35 83.85 3 Medium
reduced 100, 000 tonnes month-on- JMBF 61.30% 77.5 82-83 82.5 3 Medium
month while climbed up 17.7% from a PB lumps 62.50% 84.3 88.8-89.8 89.3 3 Low
Newman lumps 63.20% 85.05 89.55-90.55 90.05 3 Low
year ago. Mac lumps 62.50% 83.55 88.05-89.05 88.55 3 Low
Yandi fines 57.30% 71.1 75.6-76.6 76.1 2.75 Medium
Chinas imports of crude iron ore and Robe Valley fines 57.00% 65.2 69.7-70.7 70.2 3 Medium
concentrates were recorded at 92 million SSF 56.70% 55.85 60.35-61.35 60.85 1 Medium
FB Fines 58.30% 64.15 68.65-69.65 69.15 3 Medium
tonnes, rising 3.05 million tonnes on a
SSFG 62.50% 72.35 83.85-84.85 84.35 3 Medium
month-on-month basis or 12% year- SSFT 62.50% 72.75 84.25-85.25 84.75 3 Medium
over-year. BRBF 63.10% 84.8 86.8-87.8 87.3 3 Medium
IOCJ 64.50% 87.7 99.2-100.2 99.7 3 Medium
Coke exports in January settled at Indian fines 63/62% 77.85 85.35-86.35 85.85(*) 3 Low
Indian fines 62/61% 73.85 81.35-82.35 81.85(*) 3 Low
790,000 tonnes, down 110,000 tonnes Indian fines 61/60% 69.5 77-78 77.5(*) 3 Low
from last December while moving up Indian fines 60/59% 64.7 71.2-72.2 71.7(*) 3 Low
7.6% year-over-year. Indian fines 55/54% 40.4 46.9-47.9 47.4(*) 2 Low
Indian fines 50/50% 19.5 26-27 26.5(*) 1.5 Low
Lump Premium 62.5% 0.033$/dmtu
-Edited by Mysteel.net
Pellet Premium 63% 16/dmtu
Pellet Premium 65% 20$/dmtu

MIIT repeals 35 steel companies' [Feb 10] Mysteel Per 1% Differentials, Unit: US$/dmt
legal identity
Within Min-Max $/dmt Change
China initiated its steel industrial Per 1% Fe 60-63.5%Fe 1.6 +0.1
regulation work from 2012 and from
then to the end of 2015, Chinas central [Feb 10] Mysteel Iron Ore Port Spot Price Index (yuan/wmt)
administrative organ Ministry of Industry Product Fe Origin Loading Port Index Chg Activity Mtd avg
& Information Technology (MIIT) had Australia fines 62% Australia Qingdao 660 10 High 641.714
acknowledged 304 steel companies Australia fines 58% Australia Qingdao 559 11 High 541.857
legal identity in three batches. Brazil fines 65% Brazil Qingdao 772 10 Medium 756.29

However, based on the new version [Feb 10] Port Price Discount and Premium (Yuan/wmt)
of steel industrial regulations revised Tianjin Caofeidian Jingtang Lianyungang Zhenjiang Fangcheng
Product Rizhao Port
in 2015, and the official document Port Port Port Port Port Port
to carry out dynamic inspections on 62% Australia fines 29 5 5 5 5 15 4
steel companies released in 2016, the 58% Australia fines 4 8 8 - - 13 9
administrative organ reexamined 65% Brazilian fines 10 8 8 - - 8 10
Note:
these steel companies operations and 1. Mysteel defines FOT-based price of 62% Fe Australian fines, 58% Fe Australian fines and 65% Fe Brazilian fine on Qingdao Port as Mysteel Iron
determined to repeal legal identity of Ore Port Price Index
2. The Index aims to reflect the tradable prices of iron ore on main ports of China
35 steel companies on the list, as either 3. Mysteel Iron Ore Port Price is a free on truck price with tax included
4. Unit: Yuan/wmt
there were illegal behaviors found 5. Payment: Cash settlement
among them, or production suspension 6. Minimum Pirce change: 1 Yuan/ton
7. Data Collection Period: From 8:30 to 17:30
found lasting for over 1 year or some of 8. Index Publish Time: 17:45 each workday

them were listed on capacity-cut sheet

in 2016. [Feb 10] Market Price of Imported Iron Ore on Port (Yuan/mt)
Change
The 35 steel companies are published as 61.5% PB fines on Caofeidian Port, Yuan/wmt 665-675 -+10
below, and any dissents on the decision Spread of 61.5% PB fines on Caofeidian Port and 61.5% PB fines forward price +1 -
were open to be submitted to the related 62.5% PB lumps on Tianjin Port, Yuan/wmt 690-700 +10
administration during February 9, 2017 62.5% PB lumps on Rizhao Port, Yuan/wmt 675-685 +5

04 Copyright Mysteel.net, 2016. All Rights Reserved

 MYSTEEL RAW MATERIALS DAILY FRIDAY, FEBRUARY 10, 2017

and February 22, 2017. [Feb 10] Market Price of China Domestic Concentrates
Price Change
-Edited by Mysteel.net
66% domestic concentrate, Tangshan, wet basis, ex-work, Yuan/ton, tax-exl. 545-555 -

Coal profits might be Spread of 61.5% PB fines and 66% Tangshan concentrates 10 +5
unsustainable
[Feb 10] Forwards Price of Non-mainstream Ore ($/dmt)
China's listed coal companies turned Product Grade Origin CFR Chg
major profits last year, reversing Pellet feed 65% Ukraine/Russia 101.5-102.5 3
previous deep losses. Pellets 63% Ukraine/Russia 103.5-104.5 3
Pellets 65% Ukraine/Russia 110.25-111.25 3
Rising coal prices are responsible, Pellet feed 66% Iran 98.25-99.25 3
according to the latest estimates, but Pellet feed (HS) 66% Iran 96.25-97.25 3
one leading industry expert has warned Sinter feed conc. 66% Iran 96.25-97.25 3
of unsustainably high prices. Sinter feed conc. (HS) 66% Iran 94.25-95.25 3
Magnetic fines 62/61% Iran 60-61 3
According to an estimate by the National Magnetic fines 61/60% Iran 59-60 3
Development and Reform Commission, Magnetic fines 60/59% Iran 58-59 3
total profits for the country's designated Hematite fines 62/61% Iran 58-59 3
large coal companies with annual Hematite fines 61/60% Iran 57-58 3
Hematite fines 60/59% Iran 56-57 3
turnovers of at least 20 million yuan ($2.9
million; 2.7 million euros; 2.3 million)
were 95 billion yuan in 2016.
[Feb 9] SGX IO Swaps Settlement Price ($/dmt)
Contract DSP Change (%)
17-Feb 81.78 0.00%
One major producer - China National Q2 17 77.04 0.00%
Coal Group Corp - has estimated its net Q3 17 72.22 0.10%
profits at 1.8-2.2 billion yuan in 2016, Q4 17 68.12 0.10%
compared with losses of 2.5 billion yuan Q1 18 64.57 0.10%
the previous year. Cal 18 60.32 0.10%

Contract Volume (lots) Volume (mt) Open Interest(lots)

State Development & Investment Corp,
Swaps 150 75,000 22,337
the State-owned investment holding
TSI Futures 32,443 3,244,300 538,165
with major investments in coal mining TSI Options-Swaps 360 180,000 17,710
and power generation, projected 245 TSI Options-Futures 10,550 1,055,000 674,030
million yuan in net profits last year,
compared with losses of 2.5 billion yuan [Feb 10] Mysteel Iron Ore Swaps Curve ($/dmt)
in 2015. Mysteel Indicative Curve of SGX TSI 62% Iron Ore Swap
Outright Spread
The biggest expected profit growth so Feb 84.60/84.90 Feb/Mar 0.30/0.60
far for 2016 in the sector is expected for Mar 84.10/84.40 Feb/Q2 3.50/3.70
Inner Mongolia Yitai Coal Co Ltd, a rise of Apr 82.60/82.90 Mar/Apr 1.40/1.60
2,110 percent to 2 billion yuan. May 80.95/81.25 Apr/May 1.60/1.75
Jun 79.35/79.65 May/Jun 1.55/1.70
According to a report on the coal Q2 81.00/81.30 Jun/Jul 1.55/1.70
industry in 2016 by the China National Q3 75.85/76.15 Q2/Q3 5.00/5.20
Cal18 63.15/63.55 Q3/Q4 4.30/4.50
Coal Association, coal companies above
Cal19 53.80/54.20 Cal18/Cal19 9.00/9.50
the designated scale realized revenue of
2.06 trillion yuan in the first 11 months Feb $82.80,$83.50,$84.70; Mar $81.20,$81.70,$81.80; Feb/Mar $1.00,$0.50;Q2/Q3 $5.00,$5.05,$5.10;
of last year. Net profits stood at 85 Mysteel brokerage business contact
billion yuan, up 157 percent year-on- Tel: +65 6653 8220 (Singapore); +86-021-26093315 (Shanghai)
myles.clement@mysteel.com (Myles); yangjd@mysteel.com (William).
year.

Coal prices last year were stable in the
first half before shooting up in July.
Power coal prices reached 700 yuan per
metric ton at one point in the fourth
quarter, compared with slightly more
than 200 yuan per metric ton at the
beginning of the year. Coking coal prices
soared to 1,800 yuan per metric ton.
[Feb 10] Iron Ore Transaction/Bid/Offer
Tender:
N/A
Transitions:
100kt PB fines traded at PB fines March index+$2.3; 70kt PB lumps traded at PB
lumps March NOR index, laycan during March 1-10 on Corex.

05 Copyright Mysteel.net, 2016. All Rights Reserved

 MYSTEEL RAW MATERIALS DAILY FRIDAY, FEBRUARY 10, 2017

Iron Ore Stock Survey The increase was dampened by the signing
of mid and long-term contracts between
[Feb 10] Mysteel Iron Ore Port Stocks (0,000 ton)
Congestion Australian Brazilian Indian OresFor Stockin Daily Total Stocks Yard
coal suppliers and consumers, mainly power
Port
(Capesize, Day) Ore Ore Ore Trading BondedAreas Offtakes Stocks lastweek Capacity and steel companies, as requested by the
Qingdao 0 619 491 20 430 110 33 1450 1303 3000
government.
Rizhao 1 656 273 118 617 50 19 1381 1254 1800
Caofeidian 2 966 462 40 495 0 32.7 1669 1553 2040
Jingtang 1 908 76 62 491 0 32.1 1298 1161 1600 Jiang Zhimin, president of the CNCA, warns
Lianyungang 0 396 151 11 225 50 14.6 820 850 800 that most coal companies are still in the
Tianjin 0 656 35 8 180 20 26 930 855 1200 red. Many of them are still defaulting on
Lanshan 0 346 42 8 158 - 12.8 423 368 650
employees' salaries and pensions.
Fangchenggang 0 118 128 0 110 0 5.6 411 430 1300
Zhenjiang 0 135 26 0 210 0 1.2 316 308 500
Dalian 0 71 227 9 0 100 2.1 345 318 550 "On one hand, turning a profit has shown
Yantai 0 27 95 0 30 25 4 128 134 350 that capacity reduction has achieved
Beilun 1 293 55 0 105 0 6 440 435 500 noticeable results," he says.
Bayuquan 0 195 28 0 0 0 8.5 263 198 400
Taicang 0 171 15 0 60 - 5.5 225 190 300
Nantong 0 85 41 0 28 0 2.5 155 149 260 "On the other hand, the fast-rising prices
Rugao 0 42 18 0 28 - 1.5 78 92 350 were the unexpected result of multiple
Zhanjiang 0 57 232 0 105 - 7.3 378 388 650 factors. After all, demand has not increased.
Luojing 2 110 25 5 35 0 10.1 149 166 220
Nanjing 0 16 4 0 0 0 0.5 34 15 200
Therefore, such high prices are not
Jiangyin 2 154 121 0 265 0 6 333 303 200 sustainable."
Xiamen 0 39 2 0 0 - 2 44 37 150
Fuzhou 0 51 20 0 0 0 4.9 94 54 280 Hu Bin, an analyst at Founder CIFCO Futures,
Zhangjiagang 0 38 36 0 15 - 1.5 82 96 100
says that coal prices in 2017 may stay low
Qinhuangdao 0 28 0 0 0 0 0.5 28 25 400
Quanzhou 0 0 0 0 5 - 0 5 8 150 in the beginning and then rise to no more
Qinzhou 0 0 0 0 7 - 0 7 7 180 than 640 yuan per ton.
Changzhou 0 26 7 0 0 0 0.6 32 39 180
Dandong 0 32 25 0 0 0 2.2 61 38 300
According to a report by mysteel.com, coal
Mawan 0 0 0 0 0 - 0 0 0 75
Longkou 0 11 14 0 3 0 0.5 36 35 400
supplies this year are unlikely to increase by
Guangzhou 0 28 0 0 0 - 1.8 28 40 215 a large margin compared with last year.
31 Ports Total - 6275 2648 281 3602 355 245 11643 10848 -
Gaolan 0 6 2 0 0 0 0 8 8 100 The report says the government will increase
Shekou 0 0 0 0 0 - 0 0 0 50
its macro management of the market.
Taizhou 0 1 0 0 8 0 0 8 8 200
Majishan 0 115 63 0 10 - 9.5 257 302 350 Consequently, it added, prices are not going
Jinzhou 0 24 0 0 0 0 1 24 23 100 to fluctuate severely this year.
Yangzhou 0 5 0 0 0 0 0 5 5 200
Huanghua 0 130 30 70 75 - 12 326 310 300
-Source: China Daily
Zhoushanwu 0 80 30 0 55 - 4 118 117 90
Weifang 0 20 0 0 0 0 3 20 22 40
Laizhou 0 0 0 0 0 0 0 2 2 40 Import/Export Express of Steel
41 Ports Total - 6656 2773 351 3750 355 274.5 12410 11644 - Product and Billet/Slab in Jan, 2017
Lanqiao 0 177 30 0 270 - 2.6 349 246 500
Meijin 0 41 0 0 0 0 1 41 41 100 Chinas exports of finished steel products
Putian 0 10 2 0 0 0 0 12 12 50
edged down to 7.42 million tonnes in Jan
Maweigang 0 0 0 0 0 0 0 8 8 30
2017, off by 4.88% or 0.38 million tonnes
45 Ports Total - 6883 2805 351 4020 355 278.1 12820 11951 -
from 7.8 million tonnes in Dec 2016, the
[Feb 9]Steel Mill Iron Ore Stock Survey General Administration of Customs said in a
Imported Iron Ore Stock website-posted statement on Feb 10, 2017.
9-Feb 19-Jan Change
Imported Sinter Feed Avg Days (Unit: 10,000 tonnes) 26 35 -9
The nation's imports of iron ore swelled to
Domestic Iron Ore Stock 92 million tonnes in Jan 2017, advancing by
Domestic Sinter Feed Conc Stock (Unit: 10,000 tonnes) 83.5 90.4 -6.9 3.43% or 3.05 million tonnes from 88.95
Domestic Sinter Feed Conc Total Consumption (Unit: 10,000 tonnes) 10.04 8.14 1.9
million tonnes in Dec 2016.
Blast Furnaces Feed
Molten Iron Cost (Uni: yuan/tonne, tax-excluded) 2,039 2,032 7
Pellet Burden Ratio 12.57% 12.91% -0.34%
-Edited by Mysteel.net
Sintered Ore Burden Ratio 76.03% 75.48% 0.55%
Lump Burden Ratio 11.39% 11.61% -0.22%

Mysteel steel mills iron ore stock survey for imported iron ore covers 64 China based steel producers, distributed over regions
of Tangshan, Handan, Xingtai, Shandong, Shanxi, S. China and Regions along the Yangtze River. Survey samples are mainly
small/medium sized steel mills with crude steel output from 1 Mt to 10 Mt. The total pig iron output of samples accounts for
30.38% of the whole China pig iron output (According to the 2014 pig iron output, there are 15 steel mills with annual pig iron
output of 1-2 Mt, 21 mills with output of 2-3 Mt, 8 mills with output of 3-4 Mt and 20 mills with output of above 4 Mt; samples
are not changed).

06 Copyright Mysteel.net, 2016. All Rights Reserved

 MYSTEEL RAW MATERIALS DAILY FRIDAY, FEBRUARY 10, 2017

Steel Mill Blast Furnace Maintenance Survey

Nationwide 163 sample mills blast furnace survey Tangshan Blast Furnace Maintenance
10-Feb 3-Feb Chg There are 35 blast furnaces undergoing
BF Utilization Rate (%) 74.86% 74.72% 0.14% maintenance (including production halts)
BF Maintenance Volume (m) 128,371 128,741 -370 or being idled among the total 164 blast
Molten Iron Output Reduced due to BF Maintenance
furnaces in Tangshan region this week.
36.3 36.44 -0.14
(10,000 t, per day)
A total blast furnace volume of 20,100 m3 is
Molten Iron Output Reduced due to BF Maintenance and
47 48.72 -1.72 unproductive, weekly down 1,880 m3, with
Production Limit(10,000 t, per day)
the capacity utilization rate at 80.89%, up
Number of Mills Running BF Maintenance 88 89 -1
1.86% from last survey.
Profitable Steel Mills Percentage (%) 76.69% 74.85% 1.84%

Hebei Region 72 sample mills blast furnace survey

10-Feb 3-Feb Chg Idled Blast furnace
Regions
BF Operating Rate (%) 80.00% 80.32% -0.32% Numbers volume (m3)
BF Maintenance Volume (m) 37,548 36,918 630 4504
Molten Iron Output Reduced due to BF Maintenance 5801
11.5 11.29 0.21 Fengnan 8
(10,000 t, per day) 6002
Molten Iron Output Reduced due to BF Maintenance and 680x1
Production Limit(10,000 t, per day) 15.45 16.12 -0.67
450x1
Fengrun 2
Number of Mills Running BF Maintenance 40 39 1 500x1
Profitable Steel Mills Percentage (%) 72.60% 65.75% 6.85% 4501
Yutian 2
Note: 5201
1. The sample enterprises comprise of 163 steel mills. Among all the samples, 53 mills are with an output lower than 2 Mtpa (mln Kaiping 2 450x2
tonnes per annum), 69 mills between 2-6 Mtpa and 41 mills higher than 6 Mtpa in 2012. For Hebei Regions 72 sample mills, 27 lower
than 2 Mtpa, 30 between 2-6 Mtpa and 15 higher than 6 Mtpa in 2012, 450x9
2. BF Utilization Rate = number of BFs in operation / number of BFs surveyed;
Capacity Utilization Rate = volume of BFs in operation / total volume of BFs surveyed, 480x3
Qianan 16
3. Maintenance Volume refers to the total cubage of the BFs running overhaul, 580x2
4. Molten Iron Output Reduced due to B`F Maintenance and Production Limit refers to the reduced output caused by overhaul as well 1080x2
as some other means to curb molten iron output.
5. Profitable Steel Mills Percentage: the data, which is collected via a telephone survey, is a rough result rather than the audited
450x3
Luanxian 4
financial data. 1080x1
6. In order to better reflect the growing quantity of blast furnaces at the 163 sample steelmakers, Mysteel has adjusted the statistical
caliber for blast furnaces. Starting from April 25, 2014, the quantity of blast furnaces covered by this survey has been expanded to 724 Leting 1 1780x1
from the original 395. Accordingly, the blast furnace utilization rates have been recalculated against the new statistical caliber, and
are not comparable to previous rates published on Apr 18 and earlier.
TOTAL 35 20,100

Steel Products Stock Survey (Unit: 10,000 mt)

Product 10 Feb Weekly Chg Monthly Chg
Rebar 820.96 123.64 309.64
Wire Rod 247 46.73 117.48
HRC 267.51 40.36 84.54
Medium Plate 126.68 14.32 33.39
CRC 115.17 5.24 12.15

Iron ore futures climb as Chinas imports rise, steel mills buy

Chinese iron ore futures jumped more than 2 percent on Friday, nearly matching multi-year peaks, lifted by news that January
imports surged in a sign of a sharp uptick in demand from steel mills as the worlds second-biggest economy picked up steam.

The upbeat sentiment was stoked by a year-on-year 12 percent rise in Chinas iron ore imports last month to 92 million tonnes, the
second highest on record for any month, despite an early Lunar New Year holiday.

Steel mills moved quickly in early January to import more ore before the New Year holiday and that pushed the number up for the
month, said Daniel Meng, an analyst at CLSA Materials & Transportation Research. While the holiday meant less imports near the
end of the month, net-net the impact was positive.

Meng cautioned that the high import figure released by the General Administration of Customs also reflected a build-up of
inventories at Chinese ports, which could slow future shipments into China. Larger steel mills in China prefer to maintain stockpiles
at around six weeks consumption, while smaller mills keep inventories at three- to four-week levels, Meng said.

Chinas iron ore stocks at ports stood at a record high last week.

The customs data was positive news that the market was half-expecting, but it still had an effect, a commodities trader in Perth,
Australia said.

07 Copyright Mysteel.net, 2016. All Rights Reserved

 MYSTEEL RAW MATERIALS DAILY FRIDAY, FEBRUARY 10, 2017

Coal and Coke

Met Coke
Change
[Feb 10] Tangshan 2nd grade met coke price (Yuan/mt) 1,775 -
[Feb 10]Tianjin port quasi-first grade met coke price (Yuan/mt) 1,890 -
[Feb 10] DCE coke futures main contract close price 1,586.5 1.34%
[Feb 10] Stock in Tianjin Port (Mt) 1.56 0.01
[Feb 10] Independent coking plant (N.China) capacity utilizaiton rate 79.20% 0.90%
[Feb 10] Independent coking plant (N.China) average coke stocks (mt) 13,400 -1500
[Feb 10] Independent coking plant (E.China)capacity utilization rate 80.48% 0.16%
[Feb 10] Independent coking plant (E.China) average coke stocks (mt) 6,000 -300
Coking Coal
[Feb 10] Lvliang coking coal price, A9.5S0.6V20G>90 (Yuan/mt) 1,600 -
[Feb 10] Tangshan prime coking coal price,A11S1V27G85Y18 (Yuan/mt) 1,480 -
[Feb 10] Imported Australian coking coal, A9V25S0.5G85Y17 (US$/mt) 163 -4
[Feb 10] DCE coking coal futures main contract close price 1,158 0.04%
[Feb 10] Imported coking coal stock in China ports (Mt) 2.6663 +10%
[Feb 10] Coking coal total stock in 50 sample steel mills (Mt) 6.096 -2.53%
[Feb 10] Coking coal total stock in 100 sample independent coking plants (Mt) 7.0955 -6.55%
[Feb 10] Average coking coal stock (Mt) 0.071 -6.46%
[Feb 10] Average coking coal days of consumption (Days) 14.54 -6.25%
PCI
[Feb 10] Shanxi Yangquan PCI coal price,Q6500S<1A10-11V11HGI>65 (Yuan/mt) 995 -
[Feb 10] Russian PCI, A10,V10,Q7400,HGI65 (CIF, USD) 112 -2
[Feb 10] PCI stock in 50 sample steel mills (Mt) 2.48 down
Steam Coal
[Feb 10] Qinhuangdao steam coal FOB price, Q5500 (Yuan/mt) 600 -
[Feb 10] Australian steam coal price Q5500, A<22,V>25,S<1, MT10 (CIF, USD) 73 -
[Feb 10] ZCE steam coal future main contract close price 536.0 1.02%
[Feb 10] Steam coal stock at Qinhuangdao port (Mt) 502.5 -16.32%
[Feb 10] Steam coal stock at Caofeidian port (Mt) 247 -1.98%
[Feb 10] Steam coal stock at Guangzhou port (Mt) 125.2 26.72 Mysteels FREE Trading Screen is now LIVE!!
[Feb 10] Steam coal stock at SDIC Jingtang port (Mt) 163.5 10.02% To request a FREE Mysteel screen, please
[Feb 10] Steam coal stock at Bohai-rim four ports (Mt) 1319.4 -7.68% email mshk_info@mysteel.com

Billet
Yuan/t Chg
[Feb 10] Tangshan square billet, Yuan/t, 150x150 mm, ex-works 2,920 60

Investors in the iron ore market expect Chinese economic data in the coming weeks to show the economy got off to a good start in
2017, traders said. Investors were taking heart that steady growth was giving the central bank room to slowly tighten monetary policy
and contain debt risk, they said.

Iron ore on the Dalian Commodity Exchange stood at 656 yuan ($95) a tonne after peaking earlier in the session at 661 yuan, just shy
of Januarys three-year high of 666 yuan.

Major Australian iron ore exporter Rio Tinto this week said it sees continued strong demand from China, but warned another 40
million tonnes of additional global supply could come on stream in 2017.

Three years ago, China was producing about 400 million tonnes of ore but has since cut that annual figure to around 275 million,
according to analysts estimates.

The most active rebar on the Shanghai Futures Exchange stood at 3,255 yuan a tonne, recoiling after climbing as high as 3,273 yuan
earlier in the day.

Imports of steel products fell 8.4 percent to 1.09 million tonnes while exports fell 4.9 percent to 7.42 million tonnes, the trade data
showed.

-Source: Reuters

08 Copyright Mysteel.net, 2016. All Rights

 MYSTEEL RAW MATERIALS DAILY FRIDAY, FEBRUARY 10, 2017

Scrap China Economy News Flash

[Feb 10] Domestic Scrap Market
Price Chg
1. Recently, the uncertainties in international
market, especially in the financial markets,
Jiangsu, Zhangjiagang Scrap, 6-8mm, Shagang 1270 (Yuan/mt) 1,600 -
Shanghai Scrap, 6-8mm (Yuan/mt) 1,490 -
have increased with volatility growing, and
Guangzhou Scrap,6-8mm (Yuan/mt) 1,650 -
the uncertainties in economic policies in
some countries also have mounted. In 2017,
[Feb 10] Imported Scrap Market
the recovery of world economic is weak,
H2, Japan, FOB (JPY/ton) 25,000 -1000
China's foreign direct investment is expected
HMS 1&2, 80:20, US (CFR US$/ton) 263 -10
to slow down amid steadiness, , said the
[Feb 10] Pig Iron Ministry of Commerce.
Steelmaking pig iron,Shanxi L8-L10, ex-work, tax incl. (Yuan/mt) 2,700 -
Casting Pig Iron, Z18 (Yuan/mt) 3,150 - 2. In 2016, the inflow of foreign direct
investment into the Chinese financial
[Feb 10] Ferroalloy institutions stood at 50.778 billion yuan, the
Price Chg outflow of 68.449 billion yuan and a net
Ferrosilicon, 75-A (Yuan/mt) 5,200 - outflow of 17.671 billion yuan; the outflow
Silicon Manganese, Mn65Si17 (Yuan/mt) 6,800 - of overseas direct investment of China's
Australian Mn Ore, Mn44 (USD/mt) 49 - domestic financial institutions reached
High Chrome FeCr, Cr55 (50 base price) ( Yuan/mt) 10,200 - 124.169 billion yuan, the inflow of 60.778
Trace Carbon FeCr, FeCr55C6 ( Yuan/mt) 18,800 - billion yuan and a net outflow of 63.391
Imported Cr Ore*, Cr50% (USD/mt ) 42 - billion yuan.
Freight Market 3. China will improve its logistics network to
[Feb 9] International Freight
reduce costs for wholesalers and retailers.
Loading Port Discharge Port Vessel Type Freight Chg
The government will reduce the ratio of the
W.Australia Qingdao Capesize 4.463 +0.04
retail and wholesale sectors' overall logistics
Brazil Tubarao Qingdao Capesize 10.725 +0.642 costs on total GDP to 7 percent by 2020,
Indian Paradip N.China Supramax 7-8 - according to a plan released by the Ministry
Indian Haldia+Paradip N.China Supramax 7.5-8.5 - of Commerce and other ministries. High
Indian Goa-Anchorage N.China Supramax 7.5-8.5 - logistics costs hold back enterprises' growth.
Indian Goa-Mechanical N.China Panamax 5.5-6.5 - The ratio of China's total logistics spending
Iran Abbas/BIK N.China Handymax 11.5-12.5 - on total GDP stood at 14.5 percent in the first
S.Africa Richards/Saldanha China Capesize 7-8 - three quarters of 2016, much higher than the
average 8-to-9 percent level in developed
S.Africa Richards/Saldanha China Panamax 8.5-9.5 -
economies.
Indonesia Kalimantan China Panamax 4-5 -
Indonesia Kalimantan China Supramax 4.5-5.5 - 4. The growth in Chinas foreign investment
[Feb 9] Singapore Fuel Price ($/mt) is expected to slow down but would keep
IFO380 IFO180 MDO steady in 2017. Last year, Chinas direct
Price Chg Price Chg Price Chg investment recorded 14.53 billion yuan into
325 +3 354 -2 492 +2 53 countries along One Belt One Road,
[Feb 9] China Coastal Iron Ore Freight (Yuan/mt) accounting for 8.5% of total amount in
Route Shipsize(mt) Rate Chg the corresponding period, according to the
Ministry of Commerce.

-Edited by Quinta Wang

[Feb 9] Freight Index
Index Chg
BDI 707 +5
BCI 728 +3
BSI 668 +3
[Feb 9] Voyage Charter Transaction Report ($/mt)
Discharging
Vessel Vol(mt) Route Delivery Time Rate Rate Charterer
(mt/hour)
Ocean Duke 170000 W. Australia-Qingdao Feb 16-28 $4.50 30000sc Cargill
Aquavision 170000 Tubarao-Qingdao Mar 9-13 $10.90 30000sc K-Line
Tiger Shandong 170000 Tubarao-Qingdao In Feb $10.75 30000sc Cargill
Seamate 170000 Tubarao-Qingdao In Feb $10.75 30000sc Oldendorff
TBN 170000 Pepel-Qingdao Mar 5-10 $10.20 30000sc Tonkolili
TBN 160000 Esperance-Qingdao Feb 25 - Mar 1 $5.50 30000sc Cliffs Resources

09 Copyright Mysteel.net, 2016. All Rights Reserved

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
COMMODITIES A Bloomberg Professional Service Offering

MYST <GO>
PHYSICAL IRON ORE DATA ON BLOOMBERG
Mysteel provides physical pricing and fundamental data for steel, iron ore, coal, coking coal and freight. Supporting both China
seaborne and port side (domestic) datasets, it is well placed to provide market intelligence. With Bloombergs recent data collaboration
with Mysteel, users can now receive iron ore port side pricing data directly through the Terminal. Snapshots throughout the day provide
the market with instant access to port side pricing, which is incorporated into Bloombergs suite of analytic tools.

The Mysteel menu page provides the following three data-

The Mysteel Iron ore port side is represented in six major sets; iron ore 62% swaps (block futures), iron ore port side
ports in mainland China; Rizhao, Caofeidian, Tianjin, Li- (physical) and iron ore volatility.
anyungang, Nantong and Fangcheng. These ports are based Click on iron ore port side (permission required) this will
in four provinces: Hebei, Shandong, Jiangsu and Guangxi. load the pricing page.

Each port offers eight major brands of physical iron ore;
PBF (PB Fines), NMF (Newman Fines), Yandi (Fines), PBL (PB
Lumps), SSF (Super Special Fines), FBF (Fortescue Blended
Fines), BRBF (Brazil Blended Fines) and IOCJ (Carajas Fines).
To access the Mysteel data via the Bloomberg Terminal, type
the command MYST into the terminal window and then select
CTRB MySteel Singapore Pte Ltd
The pricing page for the Iron iron ore port side is displayed
by port/region and by brand. Bch represents the Benchmark
or Index price, which is determined by Mysteel each morn-
ing at 08:30 SGT. Bid/Ask represents received prices, and Chg
is a differential between Ask and Bch. Trd and Vol represent
trades and associated volume.

Bloomberg
10 Copyright Mysteel.net, 2016. All Rights Reserved
Click on the PBF brand under Rizhao this will load the China Type DES to show a full description of the product.
Rizhao Port Iron Ore PB Fines 61.5% Fe Spot ticker.
Now, type the command GP to access charts.

Access Mysteel volatility directly from the OVDV function.

Compare PBF (PB Fines) from multiple regions.

Access pricing data via the Bloomberg mobile app.

Access pricing data via the Bloomberg mobile app.

LEARN MORE
Please contact Myles Clement at myles.clement@mysteel.com, +65-66538220 or IB him directly for access.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

BEIJING FRANKFURT LONDON NEW YORK SO PAULO SYDNEY

+86 10 6649 7500 +49 69 9204 1210 +44 20 7330 7500 +1 212 318 2000 +55 11 2395 9000 +61 2 9777 8600
DUBAI HONG KONG MUMBAI SAN FRANCISCO SINGAPORE TOKYO
+971 4 364 1000 +852 2977 6000 +91 22 6120 3600 +1 415 912 2960 +65 6212 1000 +81 3 3201 8900

11 Copyright Mysteel.net, 2016. All Rights Reserved

Iron Ore Coal & Coke Billet Scrap Ferroalloy Freight Latest News Analysis Data MYSTEEL RAW MATERIAL DEPARTMENT

To Order

Mysteel Raw Materials Daily

USD 3,000 for one year subscription

Method of Payment Family Name:

First/Given Name:
Bank Transfer Email:
Company Name:
Please transfer the subscription fees to the bank account below with Mysteel Raw
Materials Daily Subscription Fees indicated on the remittance slip, and email a Job Title:
scanned copy of the remittance slip to ironoreglobal@mysteel.com. Address:

Bank Account Details

Post/Zip Code:
Beneficiary: Shanghai Ganglian E-Commerce Co., Ltd Country:
Compay Add: 68 Yuanfeng Road, Baoshan District, Shanghai, 200444, P. R. China Tel:
Issuing Bank: BANK OF CHINA SHANGHAI BRANCH Mob:
Bank Add: B-2/F Baishu Bldg. , 1230 N. Zhong Shan No.1 Rd. , Shanghai, P. R. China Fax:
Account No: 4572 5924 0473
Swift Code: BKCHCNBJ300 Your Interest:

Benefits of a Subscription to Mysteel Raw Materials Daily: Mysteel Iron Ore Index
To provide price assessments of all the representative raw material products Mysteel Iron Ore Report
Market Price of Imported Iron Ore at Ports
covering iron ore, coal, coke, billet, scrap, pig iron, ferro-alloys, etc.
China Domestic Iron Ore Market
To analyze the China steel raw materials market and market transaction suita- China Steel Mills` Inventory of Imported Iron Ore
tion. China Steel Mills` Inventory of Domestic Iron Ore
Market commentary of seaborne iron ore and metallurgical coke, and high- Iron Ore Stockpiles at Chinas Major Ports
lights of China`s rebar market. China Domestic Miners` Operating Rate
Coal and Coke Price
Steel industry-related news around the globe and dynamics of China-based Coal and Coke Stockpile
steel mills. Billet Price
To display various views of major iron ore and raw materials market players Scrap Price
every week. China Rebar Market
Metallurgical Coke Market
To provide the statistical data of the iron ore and coal stock at plants and
Freight Market
main seaports of China every week. Singapore Fuel Price
Industry Dynamics
Copyright
Prices, indexes and other price information published herein are based on material collected from actual market participants. Mysteel makes no
waranties, express or implied, as to the accuracy, adequacy or completeness of the data and other information set forth in this report ('data') or
as to the merchantability or fitness for a particular use of the data. Mysteel assumes no liability in connection with any party's use of the data.
Corporate policy prohibits editorial personnel from holding any financial interest in companies they cover and from disclosing information prior to the
publication date of an issue.

Copyright and General Information regarding Reports:

Copyright 2015 Mysteel. This research report is prepared for the use of Mysteel clients and may not be redistributed, retransmitted or disclosed, in
whole or in part, or in any form or manner, without the express written consent of Mysteel. Mysteel Raw Material Daily is distributed simultaneously
to internal and other portals by Mysteel and are not publicly-available materials. Any unauthorized use or disclosure is prohibited. Receipt and review
of this report constitutes your agreement not to redistribute, retransmit, or disclose to others the contents, opinions, conclusion, or information
contained in this report without first obtaining expressed permission from an authorized officer of Mysteel.

Materials prepared by Mysteel are based on public information. Facts and views presented in this material have not been reviewed by, and may not
reflect information known to, professionals in other business areas of Mysteel. Mysteel hase stablished information barriers between Mysteel and
certain business groups. As a result, Mysteel does not disclose certain client relationships with, or compensation received from, such companies in
research reports. To the extent this report discusses any legal proceeding or issues, it has not been prepared as nor is it intended to express any legal
conclusion, opinion or advice. Investors should consult their own legal
advisers as to issues of law relating to the subject matter of this report.

Mysteels knowledge of legal proceedings in which any Mysteel entity and/or its directors, officers and employees may be plaintiffs, defendants, co-
defendants or co-plaintiffs with or involving companies mentioned in this report is based on public information. Facts and views presented in this
material that relate to any such proceedings have not been reviewed by, discussed with, and may not reflect information known to, professionals in
other business areas of Mysteel in connection with the legal proceedings or matters relevant to such proceedings.

12 Copyright Mysteel.net, 2016. All Rights Reserved