Katsuhito (Kazu) Miyajima General Manager, Nickel Department New Metals Division, Mitsui & Co., Ltd.

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1 September 2 th, 211 INSG, Statistics Committee Lisbon, Portugal The Japanese Stainless Steel Industry Katsuhito (Kazu) Miyajima General Manager, Nickel Department New Metals Division, Mitsui & Co., Ltd. Mitsui owns approximately 44, hectares of forest area in 73 locations across Japan. We are committed to the preservation of this invaluable natural resource through the ownership of forests. Mitsui & Co., Ltd. in Nickel Business Involved in nickel business for long time Handles nickel trading volume of approx., Ni MT in JFY211 (through Domestic in Japan, Export from Japan, Import to Japan) for Nickel Ore, FeNi, Nickel Metal (Cathode, Briquette, Pellet), Nickel Oxide Sinter, Nickel Powder, Nickel Chemical Products ; Sumitomo Metal Mining (SMM), Vale, Eramet, BHPB, Impala, Jinchuan, Xstrata, Votorantim, Antam, Empress Investments with equity share; - Hyuga, Japan (FeNi) : 15% since 161 (SMM 6% NSSC 25%) - Coral Bay, Philippine (MS) : 1% (SMM 54% Sojitz 1% Rio Tuba 1%) - Taganito, Philippine (MS) : 15% (SMM 62.5% NAC 22.5%) - Goro, New Caledonia (NOS) : 1% (Vale 74% SMM 11% NC Govt. 5%) - Vale : 5%, through Valepar 1

2 Current Situation (1) 3 Series Ratio with Stainless Production and LME Nickel Price (3 series ratio,%) 2 Series Prouction (Right) 3 Series Production (Right) (Production,kM T ) 75.% 4 Series Production (Right) 3 Series Ratio (Left) 5, 7.% 65.% 6.% 55.% 5.% LME Ni Price Ave 3,357 3,47 3,44 6.4% 6.5% 6.% 67.6% 3,6 3,16 3,727 3, 3, % 62.% $/lb 2.7 $/lb 3.7 $/lb 4.37 $/lb 6.27 $/lb 6.6 $/lb 11. $/lb 16. $/lb.5 $/lb 6.67 $/lb. $/lb,642 $/MT 5,52 $/MT 6,76 $/MT,634 $/MT 13,23 $/MT 14,74 $/MT 24,251 $/MT 37,236 $/MT 21,12 $/MT 14,75 $/MT 21,4 $/MT 63.1% 52.6% 3, % 2,62 5.7% 3, % 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 Ni Series Production by Shape (Strip, kmt) (Others, kmt) 1,6 25 Strip 1,4 1,2 2 Sheets and Plates 1, 15 Wire Rods Rounds for 6 1 Tubes Flat Bar Shapes Cr Series Production by Shape (Strip, kmt) (Others, kmt) 1,6 25 Strip 1,4 1,2 2 Sheets and Plates 1, 15 Wire Rods Rounds for 6 1 Tubes 4 Flat 5 2 Bar Shapes Current Situation (2) Japanese Stainless Export and Import Balance by Shape (Estimated) Strip Bar and Shapes Flat Bars Plates and Sheets Wire Rod Tubes Rounds Total Production (2) 1 1,74, 12, 2, 17,7 1,5 22, 2,62, Export (2) 2 7, 35,1, 6, 74,5 15,7 1,64, Import (2) 3 Apparent Consumption Export Ratio 2 1,1 7,5 1, 12,5 26,4 5,4 141,7 1,262,1 1,4 13, 14,4 132,4 65,7 1,67, 37% 27% 42% 4% 41% 73% 41% Export to Vietnam Hong Kong Italy Malaysia USA Norway UK Import from Spain Sweden Source : Trade Statistics of Japan, Mitsui s Estimate 3

3 Strategy of Stainless Mills Strategy of Major Japanese Stainless Mills 1,2KMT 34 strip Ni free strip called FW 2 (16Cr.3Sn Low C N) Duplex(23Cr, 5Ni, 3Mo,.15N) / High Nickel contained Plate or Wire Rods. (Stainless division spun off from NSC and SMI into NSSC in 23) NIPPON METAL INDUSTRY 4kMT 34 strip D series stainless (Ni %, Cr17.5%, Mn6%, Cu2.5%) 1,kMT Focused on Cr series stainless instead of Ni series. Cr series stainless is mainly for Automobile industry. 35kMT Increasing high nickel alloy sales. 4 SMI 5% DAIDO 5% 7kMT Invested in Acerinox (Spain) by 15%. Bahru Stainless (J/V with Acerinox) in Malaysia plans to expand its rolling capacity up to 4kMT in 213, aiming to have 1 mil MT melting facility in the future. Production Share(21) AICHII 2% Sanyo 2% Others 1% NSSC 2% NMI % 3,422kM T (C apa:4,11km T) NYK 1% Nisshin JFE 1% 1% Current Current among Japanese Stainless Mills 1,2KMT NSSC NSC(%) SMI(2%) Share(.17%) 1,1kMT (7k+4k) Nisshin Steel Share(5.4%) To optimize mother coil in tight situation. NSSC Nisshin Cr Series Stainless Nisshin NSSC Ni Series Stainless. NIPPON METAL INDUSTRY Share(1.3%) Nisshin can order NMI to roll Hot Rolled Coil to optimize production line. JFE Steel 1,35kMT (1,k+35k) Nippon Yakin Kogyo JFE(NYK) only produce Cr(Ni) series Stainelss, so when Ni(Cr) order comes, they order NYK(JFE) each other. 5

4 Nickel Demand in Japan Nickel Demand in Japan (kmt, Ni basis) (kmt, Ni basis) 25 Nickel Powder Nickel Oxide Sinter/Tonimet Nickel Metal FeNi Source :Trade Statistics of Japan, Mitsui s Estimate 6 Scrap Price Trend (vs. LME Nickel Price) Scrap Price Trend (vs. LME Nickel Price) Japanese Stainless Scrap has price competitiveness, in stable manner 12% Japanese Yearly Average Chinese Stainless Scrap 12% 11% Japanese Stainless Scrap NPI price 11% 1% % % 7% 3% 4% 5% 1% % % % % % 7% 7% 6% 6% 5% Jan- 5 Apr- 5 Jul %

5 Thank you for your attention! For contact: Nickels Department, Metals Division, Mitsui & Co., Ltd.