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Vol.41, No. 9754

NEWS DIGEST

Tuesday, June 23, 2009

STEEL *Chinas Ansteel Ups Domestic Sales Prices For July Shipments -------------- 8 *JFE Steel To Execute Repairs On Kurashiki No3 Blast Furnace ---------------- 8 *Crude Steel Production By WSA Member Countries In May 2009 ----------------- 10 *Pig Iron Production By WSA Member Countries In May 2009 -------------------- 11 IRON ORE *ArcelorMittal Follows Preceding Markdown Rates ----------------------------*Vale Signs MOU With Dongkuk Steel On Slab Plant Construction --------------*Chinas Iron Ore Imports In Apr 09 By Discharge Port ---------------------*Bulk Shipping Market Bears Strong Tone ------------------------------------COAL 2008 COAL MANUAL IS NOW ON SALE *Xstrata Proposes Anglo American Merger On Equal Terms ---------------------*Part Of Chinese Coal Price With South Korean Utilities Lower Than LT Price -*Coal Sales In 2009 By Teck Of Canada To Be 20 Mil MT Or So ----------------*Foreign Materials Not Found Mixed With Coal Loaded At Muchka --------------*Spot Deal Of Australian Thermal Coal At US$68.65 --------------------------*Physical ARA (DES) Deal Of ACPRS Coal At US$63 ----------------------------*Coal Imports By 15 EU Countries 49.58 Mil MT During January-March ---------*Coal Coke Imports By 15 EU Countries During January-March -----------------*(Canada) Coal Exports In April Decreased To 2.08 Mil MT -------------------*(USA) Trade Statistics-Calcined Pet Coke Exports In April -----------------SCRAP & PIG IRON *Shredded US Scrap Prices Up To $264 C&F For Turkey ------------------------*Kanto No2 HMS Benchmark Up To Y24,500-25,000 Ex Steelworks ---------------*Tokyo Steels May Crude Steel Output Totals 148,000 Tons -----------------*Germanys CY2008 Scrap Exports Total 8.26M Tons --------------------------*C-COM: Ferrous Scrap Prices / Trading Volume On June 22 -------------------FERRO *How *Mt. *LME

5 6 6 7

2 2 3 3 8 8 12 13 13 14

1 1 1 9 9

ALLOYS 2009 FERRO ALLOY MANUAL IS NOW ON SALE Extent Does Merger Proposal From Xstrata To AAC Influence On Market ---- 4 Hope Moly Mine / USA Targets To Complete Its Project In 2012 ----------- 4 Nickel: Official Prices For June 18 - 19 ------------------------------- 12

ATTENTION *Compacted-Size Edition Of The Daily Tex Report For 2008 Is Now On Sale ---- 15 *EXCHANGE QUOTATIONS, TOKYO (Opening) --------------------------------------- 14

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Shredded US Scrap Prices Up To $264 C&F For Turkey Negotiated prices of shredded material have moved up by nearly US$4 from the earlier settlements to a level of US$264/MT C&F in ferrous crap exports out of the US East Coast to Turkey, according to information made available in Tokyo. The FOB values of the negotiated prices, though, indicate no marked change after ocean freight rates have advanced to US$40/MT or so on the US East Coast-Turkey route. In the USA, meanwhile, a gradual fall in the domestic ferrous scrap market has yet to stop. For an indicator, the composite price of No1 HMS stood at US$184.50/LT as of June 15, changing little from a week ago. But the domestic ferrous scrap market is forecast to trend upward in July because it shows a gradual rise in some areas and the ferrous scrap export market continues strong. Domestic prices of steel products in the USA are turning to a rebound phase, leading to the ensuing upswing in ferrous scrap demand. Domestic steel prices have rebounded since the beginning of June for the first time in about one year. As far as major steelmakers are concerned, companies such as AK Steel Corp, US Steel Corp and Nucor Corp have reacted with announced price increases of what they sell for July shipments. On its part, ArcelorMittal USA Steel is determined to price up sheet products for August shipments as in the case of July shipments, with a cumulative price increase of nearly US$70/ST for HR coils. Also, local demand for ferrous scrap is edging up in the USA where arisings of domestic ferrous scrap have yet to recover. Crude steel production from US steel mills totaled 1,139,000 short tons in the week of June 7-13, up 10,000 short tons from a week ago, when steel operations stood at 47.7% of capacity. As a result, US crude steel production increased for seven consecutive weeks after its low in the fourth week of April.

Kanto No2 HMS Benchmark Up To Y24,500-25,000 Ex Steelworks Japans domestic benchmark prices of locally available ferrous scrap rose further to Y24,500-25,000/ton ex steelworks for No2 HMS last week in the Kanto area, where what Tokyo Steel Mfg Co executed from June 19 brought follow-up moves by other electric steelmakers. Tokyo Steel raised what it pays for local ferrous scrap by Y500/ton at its Utsunomiya works in the north of the Kanto area. Electric steelmakers operating in the Kanto area are determined to maintain defensive purchases of local ferrous scrap since the distribution volume of material stands at a continued low level. In this connection, ferrous scrap dealers operating in northern Kanto area are quoted as saying that Tokyo Steels new purchase prices at the Utsunomiya works arent necessarily attractive except the delivered price of Y21,700/ton for the pressed grade C. Therefore, speculation lingers that Tokyo Steel may execute another price increase for local ferrous scrap at the Utsunomiya works. Among electric steelmakers operating in the Tokyo Bay area, there are moves to pay higher prices for local ferrous scrap than FAS prices for export sales. A case in point is Sanko Steel Co. The company has increased what it pays by Y3,000 to Y26,500/ton delivered Hiratsuka works for No2 HMS. By comparison, benchmark FAS prices of No2 HMS are Y24,000-25,000/ton so far. In the north of the Kanto area, meanwhile, Tokyo Tekko Co is slated to stop steel operations at its Oyama works for three weeks from July 7 for a transformer renovation there. It is likely that a shutdown of the Oyama steel operations will contribute to a balanced supply-demand status of local ferrous scrap in northern Kanto area.

Tokyo Steels May Crude Steel Output Totals 148,000 Tons Japans largest electric steelmaker Tokyo Steel Mfg Co put out a total of 148,000 tons of crude steel from the companys four works in May 2009, up 7,000 tons from a month ago, which indicates a production cutback beyond 50% as compared with peak production in August 2008. In the breakdown by works, Okayama accounted for 63,000 tons, Kyushu 59,000 tons, Takamatsu 12,000 tons, and Utsunomiya 15,000 tons. For the month under review, crude steel production volumes from the nations other major electric steelmakers were: Asahi Industries Co/32,000 tons (from the Saitama works); Osaka Steel Co/61,000 tons (8,000 tons from the Okajima works, 32,000 tons from the Sakai works, and 20,000 tons from the West Japan works); Kyoei Steel Ltd/123,000 tons (38,000 tons from the Nagoya works, 18,000 tons from the Osaka works, 20,000 tons from the Hirakata works, and 47,000 tons from the Yamaguchi works); Godo Steel Ltd/68,000 tons (37,000 tons from the Funabashi works, 26,000 tons from the Osaka works, and 4,000 tons from the Himeji works); JFE Bars & Shapes Corp/109,000 tons (27,000 tons from the Sendai works, 34,000 tons from the Kashima works, and 48,000 tons from the Himeji works); and Tokyo Tekko Co/ 36,000 tons (from the Oyama works). -1-

Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Xstrata Proposes Anglo American Merger On Equal Terms =If merger be realized oligopoly further prevails over coal export industry= It has turned out that Xstrata plc has been proposing a merger on equal terms to Anglo American plc, which fact both companies acknowledge. At the stage it remains unknown whether or not the merger of both companies would be realized or not, but upon realization of the merger, a giant mining company with total asset value of Pounds 41 billion will be born. The objective by Xstrata of merger with Anglo is to expand business scale by the merger and to win through competition with other major mining companies such as BHP Billiton plc, Companhia Vale do Rio Doce (Vale), Rio Tinto plc and so on by reduction of costs through joint ownership of infrastructure. The earliest and easiest way for expansion of business scale is to acquire competing enterprise and in this line in November 2007 BHP Billiton tried to acquire Rio Tinto and in January 2008 Vale as well to acquire Xstrata. Out of these the buying out by Vale of Xstrata was disrupted on March 25, 2008 resulting from discontinuation of negotiations with Glencore International AG, parent company of Xstrata. On the other hand, the trial for purchase of Rio Tinto by BHP Billiton underwent backward and forward moves in part due to intervene by Aluminium Corp of China (Chinalco) and eventually an integration of iron ore production businesses of both companies in the West Australia was decided upon. As a result both companies from now decided to establish a joint venture company on 50/50 investment basis to control in the West Australia iron ore production, infrastructure including railway and port and so on. Upon realization of the business integration, iron ore export industries in the world will practically be placed under control by two entities made of behemoth association of BHP Billiton/Rio Tinto and Vale. With these backgrounds in mind, Xstrata seems to have chosen Anglo as its object for the merger. Both companies are leading world coal and non-ferrous resources suppliers and upon merger of both companies oligopoly in coal and non-ferrous resources will inevitably further advance. Both Xstrata and Anglo deploy coal operations mainly in Australia and South Africa and concerning produced types of coal, production ratio of thermal coal is higher. Needless to say, Xstrata is the largest thermal coal supplier in the world operating a lot of excellent thermal coal mines in New South Wales, Australia, South Africa, Colombia and so on. At the same time in Queensland, Australia, it operates plural metallurgical coal mines. Its coal production in the calendar year 2008 amounted to 85,500,000 MT (in pro rata for equity portion, same for hereafter) composed of 6,900,000 MT of Australian hard coking coal, 5,300,000 MT of Australian semi-soft coking coal, 40,200,000 MT of Australian thermal coal, 22,700,000 MT of South African thermal coal and 10,400,000 MT of Colombian thermal coal. On the other hand, Anglo deploys coal businesses in South Africa, Australia, Colombia, Venezuela and Canada. Its coal production in the calendar year 2008 totaled 99,515,000 MT, composed of 59,417,000 MT of South African coal (out of that metallurgical coal was 972,000 MT), 13,145,000 MT of Australian metallurgical coal, 14,696,000 MT of Australian thermal coal, 10,410,000 MT of Colombian thermal coal and 1,074,000 MT of Venezuelan thermal coal and 772,000 MT of Canadian coal (out of that metallurgical coal was 632,000 MT). If under such circumstances, merger between Xstrata and Anglo be realized, the coal production scale exceeds 180 million MT. Since both companies are promoting new coal projects in Australia and South Africa, their coal production seems very likely to exceed 200 million MT in several years period. At this stage, a private sector coal company whose coal production surpasses 200 million MT is only Peabody Energy of the United States. Part Of Chinese Coal Price With South Korean Utilities Lower Than LT Price =Negotiations for FY 2009 settled on 16th= Some part of Chinese thermal coal contract prices for the fiscal year 2009 (April, 2009-March 2010) with South Korean Electric Power companies were decided to be fixed at lower level than that of LT thermal coal with Japan. The negotiations for the fiscal year 2009 with South Korea were carried out by two separate portions and on 16th June the first portion was agreed upon at US$78.50 FOB (5800 kcal/kg on NAR) with the remaining portion to be continued in negotiations, which is said to reach final agreement soon. The contract tonnage by two portions amounts to more than 3,000,000 MT in total. At the Chinese LT thermal coal negotiations with Japan, agreement was reached on 19th between Chinese side represented by China National Coal Group Corp. and the Japanese side represented by Japan Coal Development with the contract price of US$78.50 FOB (5800 kcal/kg on NAR) same level as that of South Korea. As a result the the matter took the style of following the case of South Korea, but resulted in lower contract price for some portion by South Korea. For reference the contract tonnage by Japan in the fiscal year 2009 remained below 1,300,000 MT, not reaching even half of that by South Korea. (To Be Continued On Next Page) -2-

Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

In South Korea, from the fiscal year 2009 a negotiation team composed of the five largest electric power companies (KOWEPO, KEWESPO, KOSPO, KOSEP and KOMIPO) with KOSEP as the head of the team undertakes Chinese coal negotiations. It is for the first time that South Korea precedes Japan in pricing of Chinese coal and both South Korean Electric power companies and Chinese suppliers show motivation for the start of the new formula. At the negotiations for the fiscal year 2008 through preceding settlement of LT negotiations by Japan, South Korea was obliged to settle at US$131.40 FOB (5800 kcal/kg on NAR), same level as Japan.

Coal Sales In 2009 By Teck Of Canada To Be 20 Mil MT Or So =2.4 million MT of FY 2008 contract tonnage carried over= Teck Resources Ltd, of Canada announced its coal sales in the calendar year 2009 would be 20 million MT or so. As of end April, Teck had rectified down its forecast on coal sales in the calendar year 2009 to 18 million MT to 20 million MT reflecting worldwide downfall of metallurgical coal demand. At that moment, coal sales in the calendar year 2009 had been expected to steeply fall down from 20 million MT. After the turn of April, however, metallurgical coal exports to China grew up more than previously expected and coal sales of 20 million MT or so, the maximum tonnage of expected sales, have become plausible. Teck pledges sales of 5 million MT in the second quarter (April-June) and 6 million MT in the third quarter (JulySeptember) are envisaged. For reference sales in the first quarter (January-March) reached 3,969,000 MT. At the same time Teck revealed that metallurgical coal negotiations with major consumers have more than 80 percent been completed with newly set price for its high quality hard coking coal at US$128 FOB and that the portion left undelivered of 2,300,000 MT out of the contract tonnage for 2008 has been carried over to the fiscal year 2009 with the previous contract price. As reported before, metallurgical coal suppliers of Australia and Canada have embarked on steep production cuts from the end 2008 resulting from worldwide slowdown of growth in demand for metallurgical coal caused by simultaneous world slump in economy. In these days, however, there has been emerging a tendency in review on sale plan of metallurgical coal in part thanks to metallurgical coal exports well under way to China. In effect, Grade Cache Coal Corp. of Canada has recently rectified up its coal sales target in the fiscal year 2009/ 10 (one year till March, 2010) to 1,200,000 MT to 1,400,000 MT from 1,000,000 MT to 1,300,000 MT. At the same time, Macarthur Coal Ltd. of Australia as well lifted its estimated coal sales in the fiscal year 2008/ 09 (one year till June 30, 2009) up to 4,500,000 MT to 4,800,000 MT from 3,900,000 MT.

Foreign Materials Not Found Mixed With Coal Loaded At Muchka =Result of shipment fro Tohoku Turns out favorable= In a coal cargo shipped out from the new large scale coal terminal at Muchka (Vanino Bulk Terminal/Muchka Bay) of Siberian Coal Energy Co. (SUEK), no problem of admixture of foreign material, a deficit particular to Russian coal, was found. Tohokou Electric Power imported 75,000 MT of Tugnui coal through the port by Panamax size carrier for the first time, but conspicuous problems such as admixture of foreign materials did not break out. Rather cargo handling found out to be easier just like the case of Australian coal and the problem of admixture of foreign materials could be said to have significantly been resolved. The coal was Tugnui concentrated coal directly delivered from the treatment plant with regular size distribution, lower ash content as compared with the previous shipments and slightly higher calorific value. Tugunui is thermal coal produced at Bruyart Autonomous region with calorific value of 5850 kcal/kg on NAR, of which concentrated coal reaches 6300 kcal/kg on NAR. Tugunui coal till now has been exported through Maly adjacent to Vostochny, but Japanese consumers have been inclined to shun this coal due to chronicle problem of admixture of foreign materials. Since the Russian side pledged coal shipped out through Muchka will be free from foreign materials, there were a lot of consumers willing to study on import if the result of the first cargo for Tohoku turns out favorably. In this respect there may emerge other electric power companies who will import on trial basis Tugunui coal. For reference Tohoku Electric Power has three years contract for 500,000 MT per year starting in the fiscal year 2008. From Muchka Urgalsky coal, thermal coal produced in Khabarovsk, is also shipped out and SUEK plans to export Urgalsky coal as its major export brand in future.

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

How Extent Does Merger Proposal From Xstrata To AAC Influence On Market = Synergy Will Be Thin On Chrome But Favorable To Nickel Xstrata plc ( Xstrata ) announced on the 21st of June ( local time ) that a written proposal sent to Anglo American plc (AAC ) to merge the two companies has confirmed. A scale of turnover between these two companies has differed but a scale of assets ( as of 2006 ) has been nearly on an equal footing. When these two world-class companies merge, a giant enterprise is born with its aggregate market value of Stg. Pounds 41.0 billion. Also, this new giant enterprise will become a leading natural resources company to produce coal, base metals, platinum and chrome on the worldwide scale. As of the 22nd of June, AAC started to talk with Xstrata on this merger and the situation seems to be at a very preliminary stage. AAC has taken a cautious attitude, saying that it is not known yet how does the negotiation develop hereafter and a further announcement will be made if and when appropriate. For a reference, Glencore international AG., having shared 35% of the shares in Xstrata, has taken an attitude to support the proposal on this merger. It has been viewed that, in relation to the provisions of Rule 8.3 of the City Code on Takeovers and Mergers, a distance to materialize this merger is severe. However, Xstrata has assumed that, when these two companies merge, the synergy is expected to come to US$750 million per annum by deducting the overlapped production of coal, copper and other nonferrous metals but, as far as chrome is concerned, a substantial synergy will be difficult to expect. However, as regards nickel business, in view of the facts that the capital enlarges and a power to raise funds strengthens, the nickel projects as investigated by these two companies will brighten. The two companies have held the powerful nickel projects in Brazil, New Caledonia, South Africa and Tanzania. Xstrata has been operating main bases to produce nickel and ferro-chrome and has shared large markets for these two materials but, on the other hand, AAC does not have a large base to produce ferro-chrome. AAC has held main bases in South Africa and South America for nickel production but withdrew in June of 2005 from chrome business ( AAC once acquired 40% of the shares in Samancor Chrome of South Africa but sold this chrome producer to Kermas ). AAC has been producing nickel in South Africa ( produced 15,500 tons in 2008 ) and in Venezuela ( produced 11,000 tons in 2008 ), having shared only 2% of the world production. As for manganese business, AAC has held Samancor Manganese ( acquired 40% of the shares ) in both of South Africa and Australia in cooperation with BHP Billiton. AAC decided on the end of 2008 to defer the time to complete the Barro Alto nickel project in Brazil ( to produce 36,000 tons / year ) to 2011. Also, AAC has held the project to increase nickel production in relation to an expansion of platinum production in South Africa but the plan to increase platinum production has been reviewed on the end of last year. On the other hand, Xstrata is the largest producer of ferro-chrome in the world and, as a matter of fact, produced 1,420,000 tons of ferro-chrome in South Africa for 2008, having shared 19.6% of the world production. Generally, chrome business is possible to launch with small capital and no advantage to invest large amount is seen . Xstrata has possessed main bases for nickel production in Canada, Dominica and Norway ( to produce only refined nickel ) but the production of ferro-nickel in Dominica has been suspended from October of 2008 by reason of maintenance to be continued for a long period. Xstrata produced 108,000 tons of nickel in 2008, having shared 7.8% of the world market. Xstrata has held the Koniambo nickel project in New Caledonia ( to produce 60,000 tons / year ) and this nickel project is scheduled to be materialized in 2012 - 2013. Xstrata seems to have no powerful rights and interests in manganese business. Mt. Hope Moly Mine / USA Targets To Complete Its Project In 2012 = General Moly, Inc., Project To Develop New Moly Mine Is Under Suspension While General Moly, Inc. of the USA has been currently suspending to develop the Mt. Hope primary molybdenum mine in Nevada State of the USA, this company said in last week the media concerned that this project has targeted to complete in 2012. This project is scheduled to produce 40 million lbs. per annum of Mo in molybdenum concentrate and the construction has already completed 60% of the plan in July of 2008 but, owing to a crisis of the monetary market arisen in autumn of 2008, this company announced in March of 2009 to suspend this project for the next 20 months and said that the Company intends to acquire a firm footing to raise funds during this period. However, crushing mills and facilities for roasting will take a long time to deliver and, therefore, the Company has already placed orders for these machines. Accordingly, these facilities are expected to arrive at the mine in the middle of 2010. The direct cost to produce molybdenum in concentrate at the Mt. Hope mine is estimated to be US$5.23 per lb. of Mo ( on the basis of oil price of US$80 per barrel ). The cost to produce molybdenum in concentrate at primary molybdenum mine is usually said to be higher than that of molybdenum produced as by-product from copper. However, General Moly said that the growth rate of molybdenum to be produced at copper mining companies of the USA in 2013 is forecasted to be on a low level of 0.4% on an annualized base in comparison with that in 2008 and, therefore, an expansion of molybdenum production in the USA has a possibility to be restricted. (To Be Continued On Next Page) -4-

Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

The market price of molybdenum oxide in spring of 2009 had once fallen to a level of US$7.70 per lb. of Mo but, reflecting the facts that a reduction in molybdenum production implemented by major producers has caused to improve the world situation of molybdenum supply and China has suddenly rushed to import molybdenum with substantial quantities, the current price of molybdenum oxide has recovered to a level of US$10.50 per lb. of Mo. An analyst has viewed that the market price of molybdenum oxide in 2011 to 2012 will be in the range of US$18 - 22 per lb. of Mo and is thought to move to the range of US$13 - 15 per lb. of Mo on a long run. Another analyst has forecasted that the market price of molybdenum oxide in the next 3 years will be <> 2010 : US$15 per lb. of Mo, <> 2011 : US$25 and <> 2012 - 2013 : US$12.50. General Moly has pointed out that a 40% of the world demand for molybdenum has been shared by the energy industry and this aspect has differed from that of nickel and chrome. ArcelorMittal Follows Preceding Markdown Rates = Benchmark pricing system being restored = The 2009 iron ore pricing negotiations in the Atlantic markets have seen the first settlement. Following the preceding markdown rates agreed in the Asian markets, ArcelorMittal reached agreement with Brazilian Vale on June 19, with the markdown rates of 44.47% for lump ore, 28.20% for fines ore and 48.30% for pellets, thereby rounding out new iron ore prices for the contract year 2009 in the Asian and European markets, except China. The agreement has been made between ArcelorMittals raw material procurement company ArcelorMittal Sourcing S.C.A. and Vale, with the markdown rates for the new prices of iron ore and pellets following the previous agreements reached between Vale and the steel companies of Japan and South Korea. The new iron ore prices were settled at US96.51/DMTU for Southern and Southeastern System fines (SSF), US100.95/DMTU for Carajs sinter feed (SFCJ), and US109.62/DMTU for Southern System lump. The new pellet prices were settled at US113.84/DMTU for blast furnace, and US125.23/DMTU for Direct Reduction. On May 26 Nippon Steel and Hamersley Iron settled new prices with the markdown rates of 32.95% for fines ore, and 44.47% for lump ore. On June 10, Nippon Steel and POSCO settled new prices with Vale agreeing the markdown rates of 28.20% for fines ore and 48.30% for blast furnace pellets. The settlement by ArcelorMittal following the precedents in Asia would signify that the once disrupted international benchmark pricing system is being thereby restored. The largest iron ore importer China in turn says it will draw conclusions before the end of June to put an end to the negotiations, of which the outcome is worth watching.
Results of Iron Ore Price Negotiations for Contract Year 2009

May 26-29

Nippon Steel JFE Steel, Sumitomo Hamersley Iron Metals, Kobe Steel, Nisshin Steel, POSCO, China Steel BHP Billiton JFE Steel

<Fines> <Lump>

US 97.00/ dmtu (-32.95%) US 112.00/ dmtu (-44.47%)

June 10 Vale

June 12 June 15-17

Samarco Samarco

June 19

Vale

<Fines> <Lump> <Lump> Southeastern System Southern System Nippon Steel, Sumitomo <Fines> Metals, Nisshin Steel, SSF POSCO SFCJ <Pellets> Blast furnace pellets Krakatau Steel DR Pellets Lion Group DR Pellets Nu Iron <Lump> Southern System <Fines> SSF ArcelorMittal Sourcing SFCJ <Pellets> BF Pellets DR Pellets

US 97.00/ dmtu (-32.95%) US 112.00/ dmtu (-44.47%) US 99.42/ dmtu (-44.47%) US 100.94/ dmtu (-44.47%) US US 85.43/ dmtu (-28.20%) 89.87/ dmtu (-28.20%)

US 110.43/ dmtu (-48.30%) US 125.23/ dmtu (-48.30%) US 125.23/ dmtu (-48.30%)

US 109.62/ dmtu (-44.47%) US 96.51/ dmtu (-28.20%) US 100.95/ dmtu (-28.20%) US 113.84/ dmtu (-48.30%) US 125.23/ dmtu (-48.30%)

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Vale Signs MOU With Dongkuk Steel On Slab Plant Construction = Initial production capacity 3.0-Mt/a, slabs produced to be destined for steel plate plant in Pohang = Vale of Brazil, one of the growth centers of BRICs announced June 19 that jointly with South Korean Dongkuk Steel Mill Co. and Companhia Siderrgica do Pecm (CSP) it has signed a Memorandum of Understanding (MOU) with the Brazilian State of Cear and the municipality of So Gonalo do Amarante, State of Cear, Brazil, regarding the construction of a steel slab plant with an initial production capacity of 3 million tons per annum (Mt/a). The estimated capex to be disbursed by CSP is US$4 billion. Vales investment has not been determined yet and it is subject to the approval of its Board of Directors. In the past Vale and Dongkuk Steel already signed MOUs several times on construction of a slab plant, but have not seen concrete progress to date. Slabs produced are destined for the steel plate plant of Dongkuk Steels Pohang Works anyway. In Brazil there are a large number of projects aiming to construct steelworks, including those underpinned by Vale. Among others, Vale is advancing with German steel company ThyssenKrupp the project to build a 5.0-Mt/a steelworks including blast furnace and slab facilities in the state of Rio de Janeiro with its completion targeted for December 2009. This project is being implemented through the joint venture company, ThyssenKrupp CSA Siderrgica do Atlntico. Vale is also conceiving a plan to materialize a 2.5-Mt/a slab manufacturing plant of its own in the northern state of Par.

Chinas Iron Ore Imports In Apr 09 By Discharge Port

1,000 tons

April 2009
NonAgglomerated Agglomerated

Jan-Apr 2009 Total 15,319 8,596 6,625 5,815 2,580 3,018 1,357 1,824 1,594 814 1,663 988 861 682 518 732 483 570 51 663 383 368 485 308 229 154 0 35 169 0 0 117 0 4 0 57,005
NonAgglomerated Agglomerated

Total 47,647 30,755 25,042 19,523 10,219 10,190 5,933 5,734 4,928 3,736 3,630 2,596 2,194 2,089 2,037 1,604 1,367 1,278 1,231 1,151 1,063 1,025 814 764 508 395 213 205 169 136 135 117 41 32 0 188,503

Jan-Apr'08 42,869 18,044 15,581 11,227 7,050 9,194 3,993 9,026 3,000 5,658 7,916 1,107 2,791 2,109 943 1,044 5,045 255 842 719 1,060 1,624 236 372 342 153 82 567 46 279 61 298 155,537

% change 11.1% 70.4% 60.7% 73.9% 44.9% 10.8% 48.6% -36.5% 64.3% -34.0% -54.1% 134.5% -21.4% -1.0% 116.0% 31.0% -74.7% 382.9% 36.7% 47.9% -3.3% -49.9% 223.5% 36.6% 15.5% 39.5% 149.7% -76.1% 194.5% -57.9% -32.3% -89.4% 21.2%

Qingdao Shijiazhuang Tianjin Nanjing Ningbo Dalian Zhanjiang Hangzhou Nanning Wuhan Shanghai Fuzhou Changsha Taiyuan Urumqi Beijing Xiamen Hefei Nanchang Hohhot Zhengzhou Shenzhen Guangzhou Chongqing Manzhouli Harbin Xi'an Kunming Chengdu Guiyang Shenyang Huangpu Jiangmen Changchun Others Total

15,083 8,458 6,304 5,095 2,498 2,956 1,276 1,545 1,514 787 1,435 926 861 613 233 732 483 570 51 663 383 279 485 308 175 154 0 35 169 0 0 117 0 4 0 54,192

236 137 321 720 82 62 80 279 80 28 229 62 0 69 285 0 0 0 0 0 0 89 0 0 54 0 0 0 0 0 0 0 0 0 0 2,813

46,908 30,057 24,159 17,831 9,948 9,904 5,731 5,175 4,677 3,708 3,164 2,299 2,194 1,875 847 1,604 1,298 1,278 1,231 1,151 1,063 936 814 764 432 395 158 205 169 136 135 117 41 26 0 180,432

739 698 883 1,692 271 286 201 559 251 28 466 297 0 214 1,190 0 69 0 0 0 0 89 0 0 76 0 55 0 0 0 0 0 0 6 0 8,070

Source: China's Customs Statistics

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Bulk Shipping Market Bears Strong Tone = $49.50 / ton set on 170,000-ton Brazilian ore carrier bound for China = [Capesize] <Brazil - China> - Vale voyage-chartered the MINERAL MONACO (2005-built) to ship 170,000 tons of iron ore at Tubaro, Brazil for transport to Qingdao, China. Freight rate: approx. $47.85/ton. (Fio loading to scale; unloading 30,000 t/d) Laycan schedule: end July. The vessel is relet from Pacific Bulk. - Baotrans voyage-chartered the OCEAN QUEEN (2004-built) to ship 160,000 tons of iron ore at Tubaro for transport to Majishan and Baoshan, China. Freight rate: approx. $49.50/ton. (Fio loading to scale; unloading 30,000 t/ d) Laycan schedule: June 20 - 30. [Over-Panamax] <W. Australia - China> - Rich Mark voyage-chartered two TBNs to ship 80,000 tons of iron ore each at Esperance, Western Australia for transport to Qingdao. Freight rate: $19.50/ton. (Fio loading to scale; unloading 15,000 t/d) Laycan schedule: July 1 - 15. <EC Australia - Japan> - Japans Chubu Electric Power time-chartered the UNITED JOURNEY (82,580 dwt, 2009-built) with delivery at Zhenjiang, China and redelivery in Japan via the east coast of Australia. Charter rate: $25,000/day. Laycan schedule: June 22 - 24. The cargo is coal. [Panamax] <Australia - EC India> - State Authority of India (SAIL) voyage-chartered the NAVIOS STAR (2002-built) to ship 75,000 tons of coal at Port Kembla, Australia for transport to the east coast of India. Freight rate: $25.00/ton. (Fio loading and unloading 20,000 t/d each) Laycan schedule: July 13 - 23. <USA - EC India> - SAIL voyage-chartered the GRAZIA BOTTIGLIERI (1999-built) to ship 75,000 tons of coal at Newport News, the USA for transport to the east coast of India. Freight rate: $44.00/ton. (Fio loading and unloading 20,000 t/ d each) Laycan schedule: July 10 - 20.
US$ per ton 120.00

Capesize Freight Market (Brazil - China)

100.00

80.00

60.00

40.00

20.00

0.00
Jan'06 Apr July Oct Jan'07 Apr July Oct Jan'08 April July Oct Jan'09 Apr June

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Chinas Ansteel Ups Domestic Sales Prices For July Shipments Chinas Anshan Iron & Steel Group Corp (Ansteel) applies price increases to several items in its notice to domestic customers on the price terms of various steel products for July shipments, it was learned in Tokyo Monday. The price increases by the ton are Yn150 (US$22) for HR coils, Yn350 (US$51) for CR coils, Yn300 (US$44) for hot-dip galvanized sheets, and Yn100 (US$15) for heavy/medium plates. By comparison, domestic price increases by Chinas Baosteel Co Ltd for July shipments represent major ones of Yn500 (US$74) for HR coils, Yn400 (US$59) for CR coils, and Yn500 (US$74) for HDG sheets. The corresponding price increases by the nations Wuhan Iron & Steel Group Corp (Wisco) are Yn200 for HR coils and Yn360 for CR coils. Therefore, Ansteels price increase of HR coils for July shipments is smaller than Wiscos, while the formers price increase of CR coils is on a par with the latters. In this connection, Ansteel may be taking a cautious view of how things go because upward mobility of steel demand in inland areas is lower than what exists in the Shanghai area, Japans integrated steelmakers believe. With the price increase of CR coils for July shipments, it follows that Ansteel has raised the asking price of CR coils by the equivalent of nearly US$100/ton in two months, according to market sources.

JFE Steel To Execute Repairs On Kurashiki No3 Blast Furnace JFE Steel Corp is contemplating executing repairs on the No3 blast furnace for a fourth time in the Kurashiki division of the companys West Japan works. The repairs are scheduled to start in October 2009 for completion in April 2010. The repairs are estimated to cost nearly Y30 billion. JFE Steel has stopped operations of the Kurashiki No3 blast furnace since January this year in the wake of plunged steel demand. After the repairs, the new Kurashiki No3 blast furnace will have an enlarged inside volume of 5,055 cubic meters, up from the present 4,359 cubic meters. JFE Steel intends to decide when to kindle the new Kurashiki No3 blast furnace after due consideration of how steel demand will come out in the future. Spot Deal Of Australian Thermal Coal At US$68.65 =For delivery in July 2009= On 22nd June, at the Australian thermal coal market by loading at Newcastle (Phys NEWC) of globalCOAL, a spot deal of 20,000 MT for delivery in July 2009 was realized at US$68.50 FOB. At the same market on 18th a spot deal of 15,000 MT for delivery in August 2009 was witnessed at US$68.50 FOB. On 22nd at the same market both selling and buying prices fell down to US$68.65 by US$0.10 and to US$68.65 by US$0.10 respectively from one day before. As a result the spot index price fell down to US$70.81 by US$0.68. Physical ARA (DES) Deal Of ACPRS Coal At US$63 =For delivery in August 2009= On 19th June, at the physical thermal coal market of globalCOAL, ARA (DES) deal (delivered at Amsterdam/ Rotterdam) for delivery in August 2009 by 50,000 MT of ACPRS (Australian, Colombian, Polish, Russian and South African) coal was realized at US$63.00 FOB. At DES ARA market on 16th two ARA (DES) deals (delivered at Amsterdam/Rotterdam) by 50,000 MT each of ACPRS coal were witnessed at US$66.50 FOB for delivery in August 2009 and US$67.00 FOB for delivery in September 2009. On 19th at DES ARA market, the selling price remained unchanged at US$63.00, while the buying price dropped down to US$63.00 by US$0.50 from one day before. As a result, the spot index price fell down to US$65.15 by US$0.39. The table below shows the details of the above del.
Realized Date 19-Jun
Total

Quantity (MT) 50,000

50,000

Phys ARA (DES) Contracted Price Delivery Date (US$/MT) Aug'09 63.00

Origin ACPRS

Delivery Point Ams/Rot

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Germanys CY2008 Scrap Exports Total 8.26M Tons Germanys ferrous scrap exports totaled 8,269,000 tons in calendar 2008, down 2.8% from a year ago, when they indicated a year-on-year fall for the first time in two years, according to German trade statistics made available in Tokyo. In the breakdown by main destinations, the Netherlands ranked first at 1,456,000 tons or 17.6% of the total, up 3.6% from a year ago; Italy second at 1,452,000 tons or 17.6%, up 6.7%; Luxembourg third at 1,297,000 tons or 15.7%, down 29.3%; France fourth at 1,264,000 tons or 15.3%, down 10.5%; and Belgium fifth at 766,000 tons or 9.3%, down 13.3%. Germany's Ferrous Scrap Exports In 2008 (In MT)
Netherlands Italy Luxembourg France Belgium Turkey Austria Switzerland Spain India Taiwan Slovenia Finland China Sweden Egypt Hungary Denmark Czech Rep. Thailand Pakistan Poland UK Norway Indonesia Portugal Bangladesh S.Korea Slovakia Hong Kong USA Bulgaria Others Total Source: Eurostat Jan-Dec,2006 Share(%) 1,381,757 16.59 1,347,454 16.18 1,737,424 20.86 1,368,472 16.43 924,731 11.10 233,329 2.80 284,536 3.42 308,084 3.70 191,248 2.30 31,860 0.38 223 0.00 92,935 1.12 45,845 0.55 46,554 0.56 68,378 0.82 6 0.00 4,950 0.06 6,124 0.07 8,399 0.10 894 0.01 14,568 0.17 14,121 0.17 94,632 1.14 490 0.01 21,088 0.25 11,203 0.13 3,516 0.04 924 0.01 58,023 0.70 131 0.00 26,532 0.32 8,328,431 100.00 Jan-Dec,2007 Share(%) 1,405,118 16.52 1,361,227 16.01 1,834,227 21.57 1,411,474 16.60 883,380 10.39 223,779 2.63 384,316 4.52 286,954 3.37 192,628 2.27 60,064 0.71 46,225 0.54 63,750 0.75 56,144 0.66 53,793 0.63 52,962 0.62 45 0.00 16,722 0.20 17,061 0.20 9,766 0.11 7,329 0.09 6,990 0.08 16,701 0.20 18,075 0.21 33,387 0.39 1,525 0.02 27,385 0.32 900 0.01 21,740 0.26 671 0.01 1,090 0.01 342 0.00 4,159 0.05 3,993 0.05 8,503,922 100.00 Jan-Dec,2008 Share(%) 1,456,074 17.61 1,452,007 17.56 1,297,423 15.69 1,263,693 15.28 766,197 9.27 346,737 4.19 329,700 3.99 293,182 3.55 282,969 3.42 196,259 2.37 100,174 1.21 70,490 0.85 49,991 0.60 43,518 0.53 43,368 0.52 40,194 0.49 36,509 0.44 35,989 0.44 16,841 0.20 16,824 0.20 15,193 0.18 12,515 0.15 11,663 0.14 8,780 0.11 7,059 0.09 6,325 0.08 4,136 0.05 3,799 0.05 1,598 0.02 1,474 0.02 1,174 0.01 319 0.00 56,489 0.68 8,268,663 100.00 % Change (2008/2007) 3.6 6.7 -29.3 -10.5 -13.3 54.9 -14.2 2.2 46.9 226.7 116.7 10.6 -11.0 -19.1 -18.1 89220.0 118.3 110.9 72.4 129.6 117.4 -25.1 -35.5 -73.7 362.9 -76.9 359.6 -82.5 138.2 35.2 243.3 -92.3 1314.7 -2.8

C-COM: Ferrous Scrap Prices / Trading Volume On June 22

Jul-09 Previous Closing Price Morning Session 1st Morning Session 2nd Afternoon Session 1st Afternoon Session 2nd Change form Prev. day Volume 11,570 11,570 11,570 11,570 11,570 0 0 0 0 0 0 0 Aug-09 11,570 11,570 11,570 11,570 11,570 0 0 0 0 0 0 0 Sep-09 11,600 11,600 11,600 11,600 11,600 0 0 0 0 0 0 0 Oct-09 11,810 11,810 11,810 11,810 11,810 0 0 0 0 0 0 0 Nov-09 11,850 11,850 11,850 11,850 11,850 0 0 0 0 0 0 0 Dec-09 11,910 11,920 11,920 11,920 11,920 10 0 0 0 0 0 0 Volume 0 0 0 0 0 0

C-COM: Central Japan Commodity Exchange The number in the right space of each contract month shows the volume. The price is only indicative and not firm, wherever the volume of the contract month shows zero(0).

^=Limit up, v=Limit down, A=Ask, B=Bid, C=Choice

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Crude Steel Production By WSA Member Countries In May 2009

(Unit: 1000MT) May April May % change *Crude Steel production 2009 2009 2008 May.-09/08 2009 Austria 438 375 676 -35.2 1,939 Belgium 440 e 424 r 1,072 -59.0 2,105 Bulgaria 65 e 60 e 142 -54.1 296 Czech Republic 330 295 620 -46.8 1,659 Finland 251 165 410 -38.9 992 France 992 821 1,689 -41.3 4,747 Germany 2,168 1,874 r 4,154 -47.8 11,318 Greece 120 e 112 261 -54.0 766 Hungary 117 98 193 -39.4 491 Italy 1,688 1,492 2,892 -41.6 8,113 Luxembourg 190 e 183 268 -29.2 868 Netherlands 323 323 r 667 -51.5 1,595 Poland 500 e 479 970 -48.4 2,426 Romania 180 e 175 e 500 -64.0 885 Slovakia 347 291 453 -23.4 1,407 Slovenia 15 22 62 -76.3 150 Spain 1,161 1,168 r 1,980 -41.3 5,388 Sweden 214 199 492 -56.6 1,137 United Kingdom 773 673 r 1,328 -41.8 3,548 Other E.U. (27) (e) 186 e 197 e 186 e 0.0 875 European Union (27) 10,498 9,427 19,015 -44.8 50,705 Bosnia-Herzegovina 51 43 59 -13.8 188 Croatia 2 e 3 9 -78.9 15 Macedonia 30 e 30 e 0 131 Norway 51 46 56 -8.9 241 Serbia 0 11 173 -100.0 204 Switzerland 93 33 118 -21.3 379 Turkey 2,126 1,977 2,535 -16.1 9,577 Other Europe 2,353 2,142 2,950 -20.3 10,734 Byelorussia 218 236 232 -6.0 1,099 Kazakhstan 331 361 415 -20.2 1,563 Moldova 5 e 4 84 -94.0 85 Russia 4,678 4,374 6,804 -31.2 21,914 Ukraine 2,351 2,140 3,917 -40.0 11,311 Uzbekistan 65 68 59 10.2 310 C.I.S.(6) 7,648 7,183 11,511 -33.6 36,282 Canada 750 e 700 e 1,469 -49.0 3,799 Cuba 20 e 20 e 24 -18.0 84 El Salvador 2 e 2 e 7 -70.6 10 Guatemala 0 e 0 e 31 0.0 0 Mexico 1,100 e 1,062 1,595 -31.0 5,265 Trinidad and Tobago 35 e 35 e 59 -40.3 152 United States 4,310 3,799 8,733 -50.6 20,093 North America 6,217 5,618 11,918 -47.8 29,404 Argentina 269 279 499 -46.2 1,348 Brazil 1,894 1,729 2,973 -36.3 8,624 Chile 95 e 90 e 152 -37.3 431 Colombia 95 e 90 e 99 -4.0 447 Ecuador 20 e 20 e 8 159.7 94 Paraguay 5 e 5 e 7 -26.5 20 Peru 45 e 45 e 99 -54.6 220 Uruguay 5 e 5 e 8 -39.0 23 Venezuela 370 e 360 e 356 4.0 1,822 South America 2,798 2,623 4,200 -33.4 13,029 Algeria 28 70 71 -60.1 233 Egypt 453 468 526 -13.9 2,228 Libya 95 e 87 116 -17.8 480 Morocco 40 37 57 -28.8 189 South Africa 600 e 580 e 770 -22.1 2,802 Zimbabwe 0 e 0 e 0 0.0 0 Africa 1,217 1,242 1,540 -21.0 5,931 Iran 925 949 829 11.6 4,737 Qatar 81 93 143 -43.2 428 Saudi Arabia 405 433 448 -9.6 1,777 Middle East 1,412 1,476 1,421 -0.6 6,942 China 46,460 43,413 46,195 0.6 217,191 India 4,730 e 4,580 e 4,329 9.3 22,975 Japan 6,488 5,734 10,547 -38.5 29,818 South Korea 4,240 4,094 4,808 -11.8 18,854 Taiwan, China 1,150 e 1,115 e 1,901 -39.5 5,470 Asia 63,068 58,936 67,779 -7.0 294,308 Australia 318 288 650 -51.1 1,558 New Zealand 63 59 78 -19.5 319 Oceania 380 347 727 -47.7 1,877 Total 66 countries 95,590 88,992 121,062 -21.0 449,212 The 66 countries included in this table accounted for more than 98% of total world crude steel production in 2008. e - estimated * - not included in totals to avoid double-counting r - revised 5 months 2008 3,310 5,057 641 3,034 2,011 8,220 20,230 1,139 948 14,151 1,344 3,253 4,516 2,432 2,214 296 8,781 2,491 6,192 875 91,133 252 37 93 292 837 612 11,715 13,839 1,060 1,946 409 32,114 18,601 278 54,408 7,072 117 34 46 7,931 214 42,575 57,988 2,368 14,514 731 455 38 38 470 32 1,672 20,317 372 2,816 533 232 3,734 0 7,688 4,207 611 2,147 6,965 216,223 22,866 51,525 22,946 9,243 322,803 3,340 347 3,687 578,828 % change -41.4 -58.4 -53.8 -45.3 -50.7 -42.2 -44.1 -32.7 -48.2 -42.7 -35.4 -51.0 -46.3 -63.6 -36.5 -49.3 -38.6 -54.3 -42.7 0.0 -44.4 -25.6 -60.7 40.4 -17.5 -75.7 -38.1 -18.3 -22.4 3.7 -19.7 -79.2 -31.8 -39.2 11.5 -33.3 -46.3 -27.9 -69.4 0.0 -33.6 -28.8 -52.8 -49.3 -43.1 -40.6 -41.0 -1.7 149.9 -47.4 -53.1 -27.8 8.9 -35.9 -37.5 -20.9 -10.0 -18.8 -25.0 0.0 -22.8 12.6 -29.9 -17.2 -0.3 0.4 0.5 -42.1 -17.8 -40.8 -8.8 -53.4 -8.1 -49.1 -22.4

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Pig Iron Production By WSA Member Countries In May 2009

(Unit: 1000MT) Blast Furnace Iron: Austria Belgium Bulgaria Czech Republic Finland France Germany Hungary Italy Netherlands Poland Romania Slovakia Spain Sweden United Kingdom European Union (27) Bosnia-Herzegovina Serbia Turkey Other Europe Kazakhstan Russia Ukraine C.I.S. Canada Mexico United States North America Argentina Brazil Chile Colombia Paraguay Peru South America Algeria South Africa Zimbabwe Africa Iran China India Japan South Korea Taiwan, China Asia Australia New Zealand (a) Oceania Total 42 countries (b) May 2009 603 230 0 256 170 553 1,184 84 403 280 170 125 285 164 146 607 5,260 43 0 546 590 91 3,552 2,115 5,758 420 320 1,360 2,100 152 1,692 55 30 5 0 1,934 34 340 0 374 208 April 2009 492 224 0 220 90 413 1,056 75 432 280 166 120 239 199 156 523 4,684 37 8 519 564 95 3,308 1,933 5,336 380 309 1,234 1,923 142 1,554 55 30 5 0 1,786 72 330 0 402 209 May 2008 522 674 51 454 264 1,048 2,617 118 845 581 519 302 363 385 331 958 10,031 0 162 621 783 250 4,579 3,102 7,931 851 384 3,207 4,442 231 2,989 104 32 9 37 3,401 73 444 0 517 154 42,838 2,245 7,495 2,690 906 56,175 521 61 582 84,016 % change May.-09/08 15.7 -65.9 -100.0 -43.6 -35.6 -47.2 -54.8 -28.8 -52.3 -51.8 -67.2 -58.6 -21.4 -57.5 -56.0 -36.7 -47.6 -100.0 -12.0 -24.7 -63.6 -22.4 -31.8 -27.4 -50.6 -16.7 -57.6 -52.7 -34.2 -43.4 -47.3 -5.7 -41.2 -100.0 -43.1 -53.4 -23.4 0.0 -27.7 35.1 6.0 9.6 -35.0 -17.2 -31.6 -1.0 -54.5 -16.9 -50.6 -14.2 2009 1,934 1,147 0 1,245 603 2,710 6,714 382 2,344 1,353 933 556 1,137 1,072 821 2,744 25,694 170 197 2,772 3,139 498 15,910 9,960 26,368 2,203 1,430 6,528 10,162 731 8,128 274 148 25 0 9,306 268 1,614 0 1,882 1,053 209,875 11,996 23,750 10,081 2,994 258,695 1,335 259 1,594 337,892 5 months 2008 2,519 3,145 256 2,210 1,278 5,003 12,668 593 4,677 2,824 2,376 1,504 1,750 1,803 1,623 4,577 48,806 0 791 2,794 3,585 1,312 22,599 15,467 39,378 4,168 2,007 14,669 20,844 1,155 14,956 494 110 44 165 16,923 395 2,166 1 2,563 885 201,510 11,924 36,851 12,815 4,224 267,324 2,653 270 2,924 403,231 % change -23.2 -63.5 -100.0 -43.6 -52.8 -45.8 -47.0 -35.6 -49.9 -52.1 -60.7 -63.0 -35.0 -40.5 -49.4 -40.1 -47.4 -75.1 -0.8 -12.4 -62.0 -29.6 -35.6 -33.0 -47.1 -28.7 -55.5 -51.2 -36.7 -45.7 -44.6 35.4 -44.1 -100.0 -45.0 -32.2 -25.5 -100.0 -26.6 18.9 4.2 0.6 -35.6 -21.3 -29.1 -3.2 -49.7 -4.1 -45.5 -16.2

e e

e e e

e r r

e e e

e e e e

r e e e e

e e

e e

45,426 2,460 e 4,875 2,228 620 e 55,609 237 51 287 72,121

41,631 2,380 e 4,384 2,068 600 e 51,063 237 45 281 66,248

Direct Reduced Iron: Canada 0 18 84 -100.0 141 Mexico 285 e 275 599 -52.4 1,452 Trinidad and Tobago 50 e 50 e 177 -71.8 268 Argentina 50 79 149 -66.7 273 Brazil 0 0 22 -100.0 11 Peru 10 e 10 e 8 28.2 45 Venezuela 540 e 520 e 590 -8.5 2,592 Egypt 275 268 224 22.8 1,257 Libya 90 e 85 141 -36.3 377 South Africa 110 e 100 e 129 -14.7 475 Iran 719 748 653 10.2 3,659 Qatar 184 122 87 111.7 705 Saudi Arabia 433 383 377 14.7 1,618 India 1,800 e 1,740 e 1,650 9.1 8,940 Total D.R.I.(c) 4,546 4,399 4,891 -7.1 21,812 (a) - electric pig iron. r - revised e - estimated n/a - not available (b) - the 42 countries included in this table accounted for approximately 99% of total world blast furnace iron production in 2008. (c) - the 14 countries included in this table accounted for approximately 88% of total world direct reduced iron production in 2008.

279 2,735 732 832 125 34 2,881 1,143 828 505 3,014 724 1,950 8,100 23,880

-49.5 -46.9 -63.4 -67.2 -91.2 34.3 -10.0 10.0 -54.4 -5.9 21.4 -2.6 -17.0 10.4 -8.7

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Coal Imports By 15 EU Countries 49.58 Mil MT During January-March According to the statistics of Eurostat, coal imports by 15 European Union (EU) countries during January-March 2009 reached 49,582,000 MT, up 1,923,000 MT (4.0%) from the same period one year ago. Out of that metallurgical coal imports remained 7,692,000 MT, down 2,353,000 MT (23.4%) from the same period one year ago. The table below shows the details.
EU/Coal Imports Russia South Africa Colombia U.S.A. Australia Indonesia Poland Non EU Suppression Canada Czech Latvia Norway Venezuela Ecuador Ukraine Cyprus St.Helena Kazakhstan Bulgaria Mexico Algeria China Egypt Vietnam Cote d'Ivoire Brazil Others Total EU/Coking Coal Imports Australia U.S.A. Canada Russia South Africa Indonesia Colombia Cyprus Norway Poland Lithuania Venezuela Vietnam Brazil Others Total Source: Eurostat Jan-Mar 2009 12,192,832 11,056,122 7,082,660 6,086,323 4,923,109 3,721,043 1,011,069 844,806 712,592 432,574 419,719 253,008 242,086 163,119 98,398 63,123 43,461 18,888 12,997 12,131 8,938 7,934 289 0 0 0 174,308 49,581,529 Jan-Mar 2009 2,979,753 2,761,894 712,476 648,667 232,428 148,439 89,930 63,123 54,973 570 95 0 0 0 0 7,692,345 Jan-Mar 2008 11,454,263 9,099,637 5,819,939 5,863,404 5,370,677 4,268,411 1,948,821 0 1,262,143 490,736 161,068 221,009 687,038 0 163,372 146,995 0 6,848 0 0 0 133,508 66,021 105,615 60,106 16,465 312,246 47,658,322 Jan-Mar 2008 3,482,773 3,396,829 1,509,245 551,326 356,809 109,117 262,708 0 0 2,859 301,823 55,000 16,465 257 10,045,211 2009-2008 738,569 1,956,485 1,262,721 222,919 -447,568 -547,368 -937,752 844,806 -549,551 -58,162 258,651 31,999 -444,952 163,119 -64,974 -83,872 43,461 12,040 12,997 12,131 8,938 -125,574 -65,732 -105,615 -60,106 -16,465 -137,938 1,923,207 2009-2008 -503,020 -634,935 -796,769 97,341 -124,381 39,322 -172,778 63,123 54,973 -2,289 95 -301,823 -55,000 -16,465 -257 -2,352,866 (in MT) 09/08 (%) 6.4 21.5 21.7 3.8 -8.3 -12.8 -48.1 -43.5 -11.9 160.6 14.5 -64.8 -39.8 -57.1 175.8 -94.1 -99.6 -44.2 4.0 09/08 (%) -14.4 -18.7 -52.8 17.7 -34.9 36.0 -65.8 -80.1 -23.4

LME Nickel: Official Prices For June 18 - 19

Turnover Morning (Seller) * $6.695 * $14,760 * $6.895 * $15,200 Cash Afternoon (Seller) $6.763 $14,910 $6.831 $15,060 3-Month Morning Afternoon (Seller) (Seller) $6.747 $6.804 $14,875 $6.908 $15,230 $15,000 $6.872 $15,150 15-Month Morning (Seller) $6.815 $15,025 $6.974 $15,375

Jun.18 Jun.19

Cathode per lb Cathode per ton Cathode per lb

Cathode per ton * Cash Settlement

- 12 -

Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

Coal Coke Imports By 15 EU Countries During January-March According to the statistics of Eurostat, coal coke imports by 15 European Union (EU) countries during JanuaryMarch 2009 remained 847,000 MT, down 845,000 MT (49.9%) from the same period one year ago. Out of that imports from China decreased to 68,000 MT by 305,000 MT (81.8%) from the same period one year ago. The table below shows the details.
(in MT) EU/Coal Coke Imports Poland Russia China Czech Japan Colombia Non EU Suppression Ukraine Hungary U.S.A. Bosnia-Herzegonina Croatia Turkey Australia Others Total Source: Eurostat Jan-Mar 2009 508,503 95,108 67,925 59,025 44,000 27,466 13,490 11,557 8,803 7,896 3,148 74 0 0 0 846,993 Jan-Mar 2008 664,413 225,327 373,030 175,539 43,383 5,742 12,264 21,885 28,914 8,894 0 0 64,449 55,677 12,337 1,691,854 2009-2008 -155,910 -130,219 -305,105 -116,514 617 21,724 1,226 -10,328 -20,111 -998 3,148 74 -64,449 -55,677 -12,337 -844,861 09/08 (%) -23.5 -57.8 -81.8 -66.4 1.4 378.3 10.0 -47.2 -69.6 -11.2 -49.9

(Canada) Coal Exports In April Decreased To 2.08 Mil MT According to the trade statistics of Canada, coal exports of this country in April 2009 remained 2,081,000 MT, down 521,000 MT (20.0%) from the same month last year. Out of that exports to China increased to 201,000 MT by 129,000 MT (179.9%) from the same month last year. The table below shows the details.
( in MT) Canada Exports S.Korea Japan China Taiwan Germany Finland U.S.A. India Tunisia Italy U.K. Turkey Brazil Netherlands Slovakia Others Total Apr 2009 855,962 804,518 200,681 74,378 58,141 49,064 38,577 41 22 15 0 0 0 0 0 0 2,081,399 Apr 2008 358,838 697,456 71,702 200,118 163,003 78,326 135,779 104 0 118,497 202,825 165,008 144,015 92,429 59,387 114,576 2,602,063 2009-2008 497,124 107,062 128,979 -125,740 -104,862 -29,262 -97,202 -63 22 -118,482 -202,825 -165,008 -144,015 -92,429 -59,387 -114,576 -520,664 09/08 (%) 138.5 15.4 179.9 -62.8 -64.3 -37.4 -71.6 -60.6 -20.0

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

(USA) Trade Statistics-Calcined Pet Coke Exports In April According to the trade statistics of the United States, calcined petroleum coke exports of this country in April 2009 turned out as seen at the table hereunder.
2713.12.0000: PETROLEUM COKE, CALCINED Exports Apr 2009 Pet Coke, calcined Australia Belgium Brazil Canada Chile China Croatia Ecuador Egypt El Salvador France Iceland India Italy Japan Korea, South Kuwait Malaysia Mexico Mozambique Netherlands New Zealand Nigeria Norway Oman Peru Russia Saudi Arabia Singapore South Africa Spain Thailand United Arab Emirates United Kingdom Urguay Vietnam Total Apr 2008 09-08 09/08(%) Quantity (MT) 58,541 17 31,440 72,166 0 79 9000 0 0 0 0 3840 0 0 137 356 0 0 9564 10000 36 0 55 12,553 35 5 0 124 12 35,999 8,400 0 4 0 3 0 252,366 255,521 -3,155 -1.23 FAS Value (US$) 17,833,356 8,350 13,018,000 24,067,947 0 45,236 3,330,000 0 0 0 0 1,149,158 0 0 67,728 135,522 0 0 1,633,540 3,350,000 40,775 0 48,962 8,796,402 21,206 4,747 0 35,343 3,108 13,910,000 2,940,000 0 2,984 0 2,940 0 90,445,304 84,757,142 5,688,162 6.71 Average Price (US$) 304.63 491.18 414.06 333.51 572.61 274.89 274.89 299.26 494.36 380.68 170.80 335.00 1,132.64 890.22 700.74 605.89 949.40 285.02 259.00 386.40 350.00 746.00 980.00 358.39 331.70 26.69 8.05 Quantity (MT) 230,139 17 109,366 211,551 16 2,298 9000 30 238 77 35 14076 31518 18309 611 1,054 8 20 17921 30000 42548 17,013 132 61,444 53 5 3,580 18,226 29 83,679 8,400 14 60 1 3 17 911,488 1,327,489 -416,001 -31.34 Jan-Apr 2009 FAS Value (US$) 73,148,987 8,350 46,596,928 67,526,010 18,270 4,301,286 3,330,000 15,074 78,464 54,510 29,922 4,467,595 3,485,502 6,411,196 322,226 443,127 2,918 9,742 4,300,817 10,050,000 33,824,309 5,534,896 106,436 28,186,318 31,734 4,747 6,190,239 6,379,692 11,574 30,916,415 2,940,000 9,144 27,031 2,720 2,940 16,170 338,785,289 418,051,348 -79,266,059 -18.96 Average Price (US$) 317.85 491.18 426.06 319.19 1,141.88 1,871.75 502.47 502.47 329.68 707.92 854.91 317.39 110.59 350.17 527.37 420.42 364.75 487.10 239.99 335.00 794.97 325.33 806.33 458.73 598.75 949.40 1,729.12 350.03 399.10 369.46 350.00 653.14 450.52 2,720.00 980.00 951.18 371.68 314.92 56.76 18.03 (Unit : MT)

EXCHANGE QUOTATIONS, Tokyo (Opening)

2009/6/22 TTS USD GBP EUR CAD CHF SEK DKK NOK AUD yen 97.19 162.41 135.35 86.14 89.72 12.53 18.28 15.30 79.47 TTB yen 95.19 154.41 132.35 82.94 87.92 11.73 17.68 14.70 74.47 MIDDLE yen 96.19 158.41 133.85 84.54 88.82 12.13 17.98 15.00 76.97 NZD ZAR BHD IDR(100) KRW(100) CNY HKD INR MYR TTS yen 64.11 14.35 263.55 12.84 2.38 TTB yen 59.01 9.35 247.55 11.98 1.64 MIDDLE yen 61.56 11.85 255.55 12.41 2.01 PHP SGD THB KWD SAR AED MXN PGK TTS yen 2.11 66.81 2.90 342.92 26.46 26.89 10.91 TTB yen 1.87 65.15 2.74 326.92 24.86 25.53 3.51 MIDDLE yen 1.99 65.98 2.82 334.92 25.66 26.21 7.21

Mizuho Bank, Ltd.

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Vol.41, No. 9754

THE TEX REPORT

Tuesday, June 23, 2009

The Tex Report Launches To Sell Compacted-Size Editions = All Articles published in Each Report for One Year are recorded completely in One Piece of CD In response to the request from our subscribers, which wants to preserve the back-numbers of our daily reports for a long period, The Tex Report Ltd. launches to sell Compacted-Size Editions , recording all articles published in each report for one year in one piece of CD. The Compacted-Size Editions are applied to 10 reports of (1) The Daily Tex Report - English Version for 2008 ; (2) The Daily Tex Report - English Version for 2007; (3) The Daily Tex Report - English Version for 2006 and etc. (4) The Daily Energy Report - English Version for 2008; (5) The Daily Energy Report - English Version for 2007; (6) The Daily Energy Report - English Version for 2006 and etc. These Compacted-Size Editions record all articles and various statistics published in each report for one year. These Compacted-size Editions record completely all articles published in each report for one year in one piece of CD and, accordingly, our subscribers are able to preserve all articles and data published in the past years with saving a space. Also, an anxiety for breakage or discoloration of papers and blurry letters which will arise when articles or data have been preserved in form of papers, does not come up and, therefore, the Compacted-Size Editions are believed to be the best way to preserve the back-numbers for a long period. Our prices per piece of CD for sales of these Compacted-Size Editions , including air-mail charge classified by each area, are as follows ; (1) Asia : ................................................................................................................ US$303.00 (2) Oceania, Near and Middle East, North America,Central America : ......................... US$304.00 (3) Europe, Africa and South America : ..........................................................................US$305.00 Our subscribers, who wish to purchase these Compacted-Size Editions, are kindly requested to full in the Application Form for Order attached hereto, mentioning names of publications, and to send it by Fax to our company. ATTENTION: (1) The file included in CD-ROM is PDF file, and so requires the Adobe Reader. (2) The contents of the CD can be read only through logging in by the account qualified as the Administrator. Application Form For Order Name of Compacted-Size Edition: Number of Piece: Name of Company: ___________________________________________ Postal Address: Name of Person in charge: TEL No.: ___________________________________________ ___________________________________________ ___________________________________________ ___________________________________________

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