Daily Iron Ore Index Report

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1 2-Apr Apr-18 2-May May Jun-18 1-Jul Jul Aug-18 3-Aug Sep Oct Nov Nov Dec Jan-19 IRON ORE PORT STOCK INDEX (IOPI) FOT Qingdao (inc. 16% VAT), RMB/wet tonne CFR Qingdao Equivalent (exc. 16% VAT), USD/dry tonne ¹ Index Fe Content Price Change Change % MTD YTD Low ² High ² Price Change Change % MTD YTD Low ² High ² IOPI62 62% Fe Fines 577.% % IOPI58 58% Fe Fines % % IOPI65 65% Fe Fines % % IRON ORE SEABORNE INDEX (IOSI) CFR Qingdao, USD/dry tonne Index Fe Content Price Change Change % MTD YTD Low 3 High 3 IOSI62 62% Fe Fines % IOSI65 65% Fe Fines % MARKET COMMENTARY Physical iron ore port stock were relatively stable as the number of concluded trades remain low. Mills in Tangshan have completed their purchasing programs. The Tangshan billet price was announced today at 34yuan/mt until Feb.1th, 219. According to SMM s research, mills demands for medium-low grade products has grown, whilst the ratio of pellets in the blast furnace feed has increased. Mill profits have recovered from late November and coupled with Tangshan s strict sintering restriction, this has driven pellet demand. It is predicted that the mills current blend ratio in blast furnaces will remain at current levels following CNY. Week Ending January 18 FOT Qingdao (inc. 16% VAT), RMB/wet tonne IRON ORE PORT LUMP INDEX (IOPLI) CFR Qingdao Equivalent (exc. 16% VAT), USD/dry tonne ¹ Index Fe Content Price W-o-W Change % MTD YTD Low 3 High 3 Price W-oW Change % MTD YTD Low 3 High 3 IOPLI % Fe Lump % % IRON ORE DOMESTIC CONCENTRATE SPOT PRICE ASSESSMENTS AND COMPOSITE INDEX Week Ending January 18th, 218 RMB/tonne (excluding tax) 4 USD/tonne (excluding tax) 4 Province Region Product Basis This week Change % Low ² High ² This week Change % Low ² High ² Hebei Hanxing 66% Fe Concentrate Dry % % Hebei Qian'an 65% Fe Concentrate Dry 75.% % Liaoning Anshan 65% Fe Concentrate Wet 535.% % Shandong Zibo 65% Fe Concentrate Dry 74.% % Week Ending January 18th, 218 China Mines Concentrate Composite Index RMB/WT This week Change % Low 5 High % ¹ Exchange rate applied: RMB/USD = Since March ³ Since June ⁴ Weekly exchange rate applied: RMB/USD Last 12 months IRON ORE PORT INDEX, FOT QINGDAO (RMB/WT) IRON ORE SEABORNE INDEX, CFR QINGDAO (USD/DMT) IO PI62 IOPI58 IOPI65 IO SI62 IOSI65 IRON ORE PORT STOCK INDEX MONTHLY, QUARTERLY AND YEAR-TO-DATE AVERAGES FOT Qingdao (inc. 16% VAT), RMB/wet tonne CFR Qingdao Equivalent (exc. 16% VAT), USD/dry tonne ¹ Index Fe Content September October November December January QTD YTD September October November December January QTD YTD IOPI62 62% Fe Fines IOPI58 58% Fe Fines IOPI65 65% Fe Fines IRON ORE SEABORNE INDEX MONTHLY, QUARTERLY AND YEAR-TO-DATE AVERAGES FREIGHT RATES CFR Qingdao, USD/dry tonne January 22nd 219 FREIGHT RATES - DRY BULK US$/wet tonne Index Fe Content September October November December January QTD YTD IOSI62 62% Fe Fines IOSI65 65% Fe Fines Route Designation Change Change % Low 5 High 5 W. Australia - Qingdao C % Tubarao - Qingdao C % IRON ORE PORT LUMP INDEX MONTHLY, QUARTERLY AND YEAR-TO-DATE AVERAGES Week Ending January 18 FOT Qingdao (inc. 16% VAT), RMB/wet tonne CFR Qingdao Equivalent (exc. 16% VAT), USD/dry tonne ¹ Index Fe Content September October November December MTD QTD YTD September October November December MTD QTD YTD IOPLI % Fe Lump Page 1/5

2 8-Jun Jun Jun Jun-18 6-Jul Jul-18 2-Jul Jul-18 1-Aug Aug Aug Aug-18 7-Sep Sep Sep-18 5-Oct O ct O ct O ct-18 2-Nov-18 9-Nov Nov-18 3-Nov-18 7-Dec Dec Dec-18 4-Jan Jan Jan-19 USD/DMT RMB/WT IRON ORE INDEX COMPARISONS CHINA DOMESTIC COMPOSITE MINES INDEX (RMB/Wet Tonne, including VAT) IOSI62 IOPI62 (equivalent) IOSI65 IOPI65 (equivalent) China Domestic Composite Mines Index Price Change Diff to IOPI62 Roy Hill SIMEC Fines PB Fines Newman Fines MAC Fines Jimblebar Blended Fines Carajas Fines Brazilian SSF Brazilian Blend Fines RTX Fines Price Change Diff to IOPI58 SSF FMG Blended Fines Robe River Western Fines Atlas Fines Yandi % Fe 1% Alumina 1% Silica.1% Phosphorus Port Stock Index Product Differentials (RMB/wet tonne) High Fe Grade Si <4% High Fe Grade Si 4-6.5% Low Fe Grade Applicable range High Grade Fe 6-63% High Grade Fe 63-64% High Grade Fe 64-65% High Grade Fe % Low Grade Fe High Fe Grade Al <2.25% High Fe Grade Al % Low Fe Grade Al <2.25% Low Fe Grade Al % High Fe Grade.9%<P<.115% High Fe Grade.115%<P<.15% Low Fe Grade.9<P<.1% IRON ORE BRAND SPOT PRICE ASSESMENTS IRON ORE INDEX NORMALISATION DIFFERENTIALS Value Change Page 2/5 SEABORNE INDEX (USD/DMT) Price Change Diff to IOSI62 Roy Hill SIMEC Fines PB Fines Newman Fines MAC Fines Jimblebar Blended Fines Carajas Fines Brazilian SSF Brazilian Blend Fines RTX Fines % Fe 1% Alumina 1% Silica.1% Phosphorus Port Stock Differentials to Qingdao Port (RMB/wet tonne) Seaborne Index Product Differentials (UDS/dry tonne) Applicable range High Grade Fe 6-63% High Grade Fe 63-64% High Grade Fe 64-65% High Grade Fe % High Fe Grade Al <2.25% High Fe Grade Al % High Fe Grade Si <4% High Fe Grade Si 4-6.5% High Fe Grade.9%<P<.115% High Fe Grade.115%<P<.15% Value Change Port Value Change Port Value Change Port Value Change Port Value Change Bayuquan Fangcheng -5.. Lanshan.. Qingdao.. Beilun 5.. Jiangyin Lianyungang.. Rizhao.. Caofeidian -5.. Jingtang -5.. Majishan.. Shekou.. Dalian Lanqiao.. Nantong Tianjin

3 5-Apr-18 2-Apr-18 5-May-18 2-May Jun-18 4-Jul Jul Aug-18 2-Sep-18 2-Oct Oct-18 1-Nov-18 1-Dec Dec Jan-19 million mt RMB/tonne USD/tonne 8-Jun Jun Jun Jun-18 6-Jul Jul-18 2-Jul Jul-18 1-Aug Aug Aug Aug-18 7-Sep Sep Sep-18 5-Oct O ct O ct O ct-18 2-Nov-18 9-Nov Nov-18 3-Nov-18 7-Dec Dec Dec-18 4-Jan Jan Jan Jun Jun-18 2-Jul-18 9-Jul Jul-18 3-Jul-18 6-Aug Aug Aug-18 3-Sep-18 1-Sep Sep-18 1-Oct-18 8-Oct O ct O ct-18 5-Nov Nov Nov Nov-18 3-Dec-18 1-Dec Dec Dec-18 7-Jan Jan Jan-19 RMB/DMTU USD/DMT 2-Apr Apr-18 2-May May Jun-18 1-Jul Jul Aug-18 3-Aug Sep O ct Nov Nov Dec Jan Jun Jun-18 2-Jul-18 9-Jul Jul-18 3-Jul-18 6-Aug Aug Aug-18 3-Sep-18 1-Sep Sep-18 1-Oct-18 8-Oct O ct O ct-18 5-Nov Nov Nov Nov-18 3-Dec-18 1-Dec Dec Dec-18 7-Jan Jan Jan-19 % Spread to Benchmarks % Spread to Benchmarks IRON ORE INDEX PREMIUMS/DISCOUNTS SEABORNE INDEX (USD/DMT) Fe Content Spread to IOPI62 % Spread to IOPI62 Fe Content Spread to IOSI62 % Spread to IOSI62 58% Fe Fines % 65% Fe Fines % 65% Fe Fines % 6% 6% 5% 5% 4% 4% 3% 3% 2% 2% 1% 1% % % -1% -1% -2% -2% -3% -3% -4% -4% IOPI65 % Spread to IOPI62 IOPI58 % Spread to IOPI62 IOSI65 % Spread to IOSI62 WEEKLY IRON ORE PORT STOCK LUMP PREMIUM (62.5% FE LUMP 62% FE FINES) IRON ORE SEABORNE TO PORT STOCK SPREADS Lump 62.5% Fe Premium RMB/dmtu IOSI65 Spread to IOPI65 Equivalent IOSI62 Spread to IOPI62 Equivalent TOTAL IRON ORE INVENTORIES AT CHINA PORTS FUTURE TRADING FRONT MONTH CLOSING PRICE Dalian 3pm Close SGX Front Month 6pm (RHS) IRON ORE PORT INVENTORIES Week Ending January 18, 219 (million tonnes) Province This week Change % Low⁴ High⁴ Jingtang % Qingdao % Caofeidian % Tianjin % Rizhao % Total (35 Ports) % IRON ORE FUTURES CONTRACTS DCE SGX Closing Date 23 Jan 3pm close 23 Jan 6 pm Contract I195 Change Change % Feb'19 Change Change % Closing Price % % Vol traded (' lots) % % Open positions (' lots) % % Day Low % % Day High % % Page 3/5

4 USD/mt million mt DRY BULK FREIGHT RATES TOTAL CHINA IRON ORE IMPORT VOLUMES C5 - W. Australia - Qingdao C3 - Tubarao - Qingdao Steel Spot Market Prices - China Steel Spot Market RMB/tonne Product 18/1/219 Change Change % ReBar HRB4 ɸ18mm 3, % Wirerod Q3 ɸ6.5mm 3, % HRC Q235/SS4 5.5mm*15*C 3, % CRC SPCC/ST12 1.mm*125*25 4, % Medium & Heavy Plate Q235B 2mm 3, % GI ST2Z 1.mm**C 4, % Billet Q235 15*15mm 3, % China Export Prices USD/tonne CHINESE STEEL EXPORT PRICES Product Specification Export tax (+)/Vate rebate (-) Change 18/1/219 Rebar BS B 12-25mm, + chrome -13% 475 Wire Rod SAE mm +chrome -9% 495 Hot-rolled coil SS4/Q mm -9% Cold-rolled coil SPCC 1.mm -13% Medium & Heavy plate A-level Shipe plate 12-25mm % Galvanised ST2Z/SGCC 1.mm -13% Note: Calculation formula for converting export prices of rebar, cold-rolled steel and galvanizing into prices in China s spot market = FOB* exchange rate*1.16/( ); Calculation formula for converting export prices of wire rod and hot-rolled steel into prices in hina s spot market = FOB* exchange rate *1.16/( ); Calculation formula for converting export prices of mediumthick plate into prices in China s spot market = FOB* exchange rate CHINESE STEEL INVENTORIES Steel Inventories³ (unit: tonnes) Product 18/1/219 11/1/219 Change Change % Rebar 3,981 3, % Wirerod 1,336 1, % Hot-rolled Coil 1,944 1, % Medium & Thick Plate % Cold-rolled Coil 1,66 1,66.% Total 9,214 8, % ³ SM M statistics cover inventories of major steel products in China s major markets: hot-rolled steel inventories in 33 major cities; rebar and wire inventories in 35 major cities; cold-rolled steel and medium-thick plate inventories in 31 major cities. CHINESE STEEL MILL PROFITABILITY SMM Tracking of Steel Mill P&L - Rebar and Hot-rolled Coil (RMB/tonne) Category Price Change (WoW) Note MMi (Fe 62%), USD/mt exluding tax Mmi CFR Equivalent index for 12th October Coke 1,97 2nd grade met coke, Tangshan, incl. tax Steel Scrap 2,21 6 steel scrap (6mm) in Zhangjiagang, exl. tax Billet Cost 2,848 2 Q234, incl. tax Rebar cost - Blast furnace 3,12 3 calculated based on theoretical w eight, incl. tax Rebar profit - Blast furnace based on Shanghai prices, incl. tax Hot-rolled coil cost - Blast furnace 3,173 3 based on actual w eight, incl. tax Hot-rolled coil proft - Blast furnace based on Shanghai prices, incl. tax Note: 1. Costs in the table are caluclated based on todays market prices and facout our management, sales, financial and depreciations fees. 2. The cost refers to average cost in the industry based on SM M 's survey of small, medium and large mills in China Page 4/5

5 IRON ORE INDEX SPECIFICATIONS, COMPILATION RATIONALE AND DATA EXCLUSIONS 65% Fe Fines 62% Fe Fines 58% Fe Fines 62.5% Fe Lump Fe % Alumina % Silica% Phosphorus % Sulphur % Moisture % Sizing Pricing Point Timing (Seaborne) Payment Terms Iron Ore Index Specifications (Port and Seaborne) Granular size below 1mm for at least 9% of cargo; maximum of 4% below 15 micron Qingdao Port (FOT and CFR respectively) Loading within 4 weeks, Delivery within 8 weeks L/C at sight Size below 6.3mm max 15% Size above 31.15mm max 25% FOT Qingdao Port Delivery within 2 weeks L/C at sight or CAD IRON ORE DOMESTIC CONCENTRATE INDEX CALCULATION METHODOLOGY Iron Ore Index Compilation Rational and Data Exclusions MMi iron ore indices are compiled from data provided by companies that are part of the iron ore supply chain and involved in spot market transactions. The indices are calculated using detailed transaction-level data submitted to MMi by these companies. This data is normalised to the appropriate specifications and screened to remove outliers before volume-weighted average prices are calculated from the remaining core set of data. For more details on MMi's iron ore methodology please download the guide published on our website at: 62% 58% 65% Port Index Seaborne index 1 Lump Index 62.5 Data Exclusions* * Number of price submissions for iron ore indices that were excluded from index calculations today as they were anomalous and could not be verified The compilation method for price index generally refers to the compilation method of CPI price index and other price indices, breakdown the price data and calculate the average value according to a certain method, taking the vertical axis as the regional composite index (average of different grade index) and the horizontal axis as the grade composite index (average of different regional index), a total composite index for domestic ore can be output ultimately. The process system is also adopted in the calculation i.e. each sub-index can be obtained as well. FOT Qingdao (RMB/wet tonne) PORT STOCK BRANDS PORT STOCK INDICES AVERAGE IRON ORE SPECIFICATIONS APPLIED FOR BRAND PRICE ASSESSMENTS SPECIFICATIONS APPLIED FOR 62% BRAND ASSESSMENTS Roy Hill 6.76% 2.35% 4.31%.6% 8.58% SIMEC Fines 6.% 2.3% 6.3%.6% 6.% PB Fines 61.66% 2.4% 3.53%.% 9.29% Newman Fines 62.44% 2.25% 4.35%.9% 7.8% MAC Fines 61.8% 2.11% 4.67%.8% 7.81% Jimblebar Blended Fines 61.14% 2.96% 4.33%.12% 7.2% Carajas Fines 65.23% 1.29% 1.76%.8% 8.4% Brazilian SSF 62.% 1.% 6.5%.4% 6.% Brazilian Blend Fines 62.56% 1.79% 4.74%.7% 8.4% RTX Fines 61.% 3.1% 4.5%.135% 7.5% SPECIFICATIONS APPLIED FOR 58% BRAND ASSESSMENTS SSF 56.55% 3.1% 6.2%.5% 9.19% FMG Blended Fines 58.23% 2.68% 5.65%.6% 7.45% Robe River 56.63% 2.88% 1.85%.4% 9.9% Western Fines 57.81% 2.92% 7.37%.6% 7.46% Atlas Fines 56.59% 2.55% 7.14%.8% 8.46% Yandi 57.26% 1.4% 6.44%.4% 9.11% CFR Qingdao Equivalent (USD/dry tonne) IOPI62 IRCNQ1 IRCNQ4 IOPI58 IRCNQ2 IRCNQ5 IOPI65 IRCNQ3 IRCNQ6 BLOOMBERG TICKERS CONTACT US SEABORNE BRANDS SPECIFICATIONS APPLIED FOR 62% BRAND ASSESSMENTS Roy Hill 6.7% 2.3% 4.9%.55% 8.% SIMEC Fines 6.% 2.3% 6.3%.6% 6.% PB Fines 62% 62.% 2.6% 4.3%.9% 1.% Newman Fines 62.8% 2.2% 4.3%.8% 6.4% MAC Fines 61.% 2.7% 4.7%.11% 9.3% Jimblebar Blended Fines 61.79% 2.67% 4.8%.115% 7.16% Carajas Fines 65.1% 1.5% 1.7%.8% 8.5% Brazilian SSF 62.% 1.% 6.5%.4% 6.% Brazilian Blend Fines 62.5% 1.5% 5.%.7% 7.% RTX Fines 61.% 3.1% 4.5%.135% 7.5% MMI Singapore Office Details: Level 28, Manulife Tower, 8 Cross Street Singapore. Tel: E: jarek@mmiprices.com SMM Singapore Office Details: Level 28, Manulife Tower, 8 Cross Street Singapore. Tel: E: service.en@smm.cn SMM Shanghai Office Details: 9th FL, Building 9, Lujiazui Software Park, No.2, Lane 91, Pudong, Shanghai Tel: E: service.en@smm.cn Visit for full index price histories and archive of daily reports This information has been prepared by Metals Market Index ("MMi"). Use of the information presented here is at your sole risk, and any content, material and/or data presented or otherwise obtained through your use of the information in this document is at your own discretion and risk and you will be solely responsible for any damage to you personally or your company or organisation or business associates whatsoever which in anyway results from the use, reliance or application of such content material and/or information. Certain data has been obtained from various sources and any copyright existing in such data shall remain the property of the source. Except for the foregoing, MMi retains all copyright within this document. The copying or redistribution of any part of this document without the express written authority of MMi is forbidden. Page 5/5