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Tuesday, J une 23, 2009Vol.41, No. 9754

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 ----------------------------- 5

*Vale Signs MOU With Dongkuk Steel On Slab Plant Construction --------------- 6

*Chinas Iron Ore Imports In Apr 09 By Discharge Port ---------------------- 6

*Bulk Shipping Market Bears Strong Tone ------------------------------------- 7

COAL 2008 COAL MANUAL IS NOW ON SALE

*Xstrata Proposes Anglo American Merger On Equal Terms ---------------------- 2

*Part Of Chinese Coal Price With South Korean Utilities Lower Than LT Price -- 2

*Coal Sales In 2009 By Teck Of Canada To Be 20 Mil MT Or So ----------------- 3

*Foreign Materials Not Found Mixed With Coal Loaded At Muchka --------------- 3

*Spot Deal Of Australian Thermal Coal At US$68.65 --------------------------- 8*Physical ARA (DES) Deal Of ACPRS Coal At US$63 ----------------------------- 8

*Coal Imports By 15 EU Countries 49.58 Mil MT During January-March ---------- 12

*Coal Coke Imports By 15 EU Countries During January-March ------------------ 13

*(Canada) Coal Exports In April Decreased To 2.08 Mil MT -------------------- 13

*(USA) Trade Statistics-Calcined Pet Coke Exports In April ------------------ 14

SCRAP & PIG IRON

*Shredded US Scrap Prices Up To $264 C&F For Turkey ------------------------- 1

*Kanto No2 HMS Benchmark Up To Y24,500-25,000 Ex Steelworks ---------------- 1

*Tokyo Steels May Crude Steel Output Totals 148,000 Tons ------------------ 1

*Germanys CY2008 Scrap Exports Total 8.26M Tons --------------------------- 9

*C-COM: Ferrous Scrap Prices / Trading Volume On June 22 -------------------- 9

FERRO ALLOYS 2009 FERRO ALLOY MANUAL IS NOW ON SALE

*How Extent Does Merger Proposal From Xstrata To AAC Influence On Market ---- 4

*Mt. Hope Moly Mine / USA Targets To Complete Its Project In 2012 ----------- 4

*LME Nickel: Official Prices For June 18 - 19 ------------------------------- 12

ATTENTION

*Compacted-Size Edition Of The Daily Tex Report For2008Is Now On Sale ---- 15

*EXCHANGE QUOTATIONS, TOKYO (Opening) --------------------------------------- 14

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Vol.41, No. 9754 THE TEX REPORT Tuesday, June 23, 2009

- 1 -

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 ofUS$264/MT C&F in ferrous crap exports out of the US East Coast to Turkey, according to information made available inTokyo.

The FOB values of the negotiated prices, though, indicate no marked change after ocean freight rates haveadvanced 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, thecomposite price of No1 HMS stood at US$184.50/LT as of June 15, changing little from a week ago. But the domesticferrous scrap market is forecast to trend upward in July because it shows a gradual rise in some areas and the ferrousscrap export market continues strong.

Domestic prices of steel products in the USA are turning to a rebound phase, leading to the ensuing upswing inferrous scrap demand. Domestic steel prices have rebounded since the beginning of June for the first time in about oneyear. As far as major steelmakers are concerned, companies such as AK Steel Corp, US Steel Corp and Nucor Corphave reacted with announced price increases of what they sell for July shipments. On its part, ArcelorMittal USA Steelis determined to price up sheet products for August shipments as in the case of July shipments, with a cumulative priceincrease 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 yetto recover. Crude steel production from US steel mills totaled 1,139,000 short tons in the week of June 7-13, up 10,000short tons from a week ago, when steel operations stood at 47.7% of capacity. As a result, US crude steel productionincreased for seven consecutive weeks after its low in the fourth week of April.

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 thecompanys 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 steelmakerswere: Asahi Industries Co/32,000 tons (from the Saitama works); Osaka Steel Co/61,000 tons (8,000 tons from theOkajima works, 32,000 tons from the Sakai works, and 20,000 tons from the West Japan works); Kyoei Steel Ltd/123,000tons (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 tonsfrom the Osaka works, and 4,000 tons from the Himeji works); JFE Bars & Shapes Corp/109,000 tons (27,000 tons fromthe 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).

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 exsteelworks for No2 HMS last week in the Kanto area, where what Tokyo Steel Mfg Co executed from June 19 broughtfollow-up moves by other electric steelmakers. Tokyo Steel raised what it pays for local ferrous scrap by Y500/ton at itsUtsunomiya works in the north of the Kanto area.

Electric steelmakers operating in the Kanto area are determined to maintain defensive purchases of local ferrousscrap since the distribution volume of material stands at a continued low level. In this connection, ferrous scrap dealersoperating in northern Kanto area are quoted as saying that Tokyo Steels new purchase prices at the Utsunomiya worksarent necessarily attractive except the delivered price of Y21,700/ton for the pressed grade C. Therefore, speculationlingers 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 localferrous scrap than FAS prices for export sales. A case in point is Sanko Steel Co. The company has increased what itpays by Y3,000 to Y26,500/ton delivered Hiratsuka works for No2 HMS. By comparison, benchmark FAS prices of No2HMS 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 worksfor three weeks from July 7 for a transformer renovation there. It is likely that a shutdown of the Oyama steel operationswill contribute to a balanced supply-demand status of local ferrous scrap in northern Kanto area.

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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 factboth 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 willbe born.

The objective by Xstrata of merger with Anglo is to expand business scale by the merger and to win throughcompetition with other major mining companies such as BHP Billiton plc, Companhia Vale do Rio Doce (Vale), Rio Tintoplc 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 inNovember 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 ofnegotiations 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 movesin part due to intervene by Aluminium Corp of China (Chinalco) and eventually an integration of iron ore productionbusinesses 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, infra-structure 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 compa-

nies are leading world coal and non-ferrous resources suppliers and upon merger of both companies oligopoly in coal andnon-ferrous resources will inevitably further advance.

Both Xstrata and Anglo deploy coal operations mainly in Australia and South Africa and concerning producedtypes 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 coalmines in New South Wales, Australia, South Africa, Colombia and so on. At the same time in Queensland, Australia, itoperates plural metallurgical coal mines. Its coal production in the calendar year 2008 amounted to 85,500,000 MT (in prorata 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 coaland 10,400,000 MT of Colombian thermal coal.

On the other hand, Anglo deploys coal businesses in South Africa, Australia, Colombia, Venezuela and Canada. Itscoal production in the calendar year 2008 totaled 99,515,000 MT, composed of 59,417,000 MT of South African coal (outof that metallurgical coal was 972,000 MT), 13,145,000 MT of Australian metallurgical coal, 14,696,000 MT of Australianthermal coal, 10,410,000 MT of Colombian thermal coal and 1,074,000 MT of Venezuelan thermal coal and 772,000 MTof 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 exceeds180 million MT. Since both companies are promoting new coal projects in Australia and South Africa, their coal productionseems very likely to exceed 200 million MT in several years period. At this stage, a private sector coal company whosecoal 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 SouthKorean Electric Power companies were decided to be fixed at lower level than that of LT thermal coal with Japan. Thenegotiations for the fiscal year 2009 with South Korea were carried out by two separate portions and on 16th June thefirst portion was agreed upon at US$78.50 FOB (5800 kcal/kg on NAR) with the remaining portion to be continued innegotiations, which is said to reach final agreement soon. The contract tonnage by two portions amounts to more than3,000,000 MT in total.

At the Chinese LT thermal coal negotiations with Japan, agreement was reached on 19th between Chinese siderepresented by China National Coal Group Corp. and the Japanese side represented by Japan Coal Development with thecontract price of US$78.50 FOB (5800 kcal/kg on NAR) same level as that of South Korea. As a result the the mattertook 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 halfof that by South Korea.

(To Be Continued On Next Page)

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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 millionMT reflecting worldwide downfall of metallurgical coal demand. At that moment, coal sales in the calendar year 2009 hadbeen expected to steeply fall down from 20 million MT. After the turn of April, however, metallurgical coal exports toChina 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 (July-September) 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 80percent been completed with newly set price for its high quality hard coking coal at US$128 FOB and that the portion leftundelivered of 2,300,000 MT out of the contract tonnage for 2008 has been carried over to the fiscal year 2009 with theprevious contract price.

As reported before, metallurgical coal suppliers of Australia and Canada have embarked on steep production cutsfrom the end 2008 resulting from worldwide slowdown of growth in demand for metallurgical coal caused by simulta-neous world slump in economy. In these days, however, there has been emerging a tendency in review on sale plan ofmetallurgical 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/MuchkaBay) of Siberian Coal Energy Co. (SUEK), no problem of admixture of foreign material, a deficit particular to Russiancoal, was found. Tohokou Electric Power imported 75,000 MT of Tugnui coal through the port by Panamax size carrierfor 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 couldbe 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 coalproduced at Bruyart Autonomous region with calorific value of 5850 kcal/kg on NAR, of which concentrated coalreaches 6300 kcal/kg on NAR.

Tugunui coal till now has been exported through Maly adjacent to Vostochny, but Japanese consumers have beeninclined to shun this coal due to chronicle problem of admixture of foreign materials. Since the Russian side pledged coalshipped out through Muchka will be free from foreign materials, there were a lot of consumers willing to study on importif the result of the first cargo for Tohoku turns out favorably. In this respect there may emerge other electric powercompanies 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 year2008.

From Muchka Urgalsky coal, thermal coal produced in Khabarovsk, is also shipped out and SUEK plans to exportUrgalsky coal as its major export brand in future.

In South Korea, from the fiscal year 2009 a negotiation team composed of the five largest electric power compa-nies (KOWEPO, KEWESPO, KOSPO, KOSEP and KOMIPO) with KOSEP as the head of the team undertakesChinese coal negotiations. It is for the first time that South Korea precedes Japan in pricing of Chinese coal and bothSouth 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.

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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 molybde-num mine in Nevada State of the USA, this company said in last week the media concerned that this project has targetedto complete in 2012.

This project is scheduled to produce 40 million lbs. per annum of Mo in molybdenum concentrate and the con-struction has already completed 60% of the plan in July of 2008 but, owing to a crisis of the monetary market arisen inautumn of 2008, this company announced in March of 2009 to suspend this project for the next 20 months and said that theCompany intends to acquire a firm footing to raise funds during this period. However, crushing mills and facilities forroasting 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.

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 Americanplc (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, basemetals, platinum and chrome on the worldwide scale. As of the 22nd of June, AAC started to talk with Xstrata on thismerger and the situation seems to be at a very preliminary stage. AAC has taken a cautious attitude, saying that it is notknown 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 supportthe 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, adistance to materialize this merger is severe. However, Xstrata has assumed that, when these two companies merge, thesynergy is expected to come to US$750 million per annum by deducting the overlapped production of coal, copper andother 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 nickelprojects as investigated by these two companies will brighten. The two companies have held the powerful nickel projectsin Brazil, New Caledonia, South Africa and Tanzania.

Xstrata has been operating main bases to produce nickel and ferro-chrome and has shared large markets forthese 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 2005from chrome business ( AAC once acquired 40% of the shares in Samancor Chrome of South Africa but sold this chromeproducer 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 hasheld Samancor Manganese ( acquired 40% of the shares ) in both of South Africa and Australia in cooperation with BHPBilliton.

AAC decided on the end of 2008 to defer the time to complete the Barro Alto nickel project in Brazil ( to produce36,000 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, chromebusiness is possible to launch with small capital and no advantage to invest large amount is seen . Xstrata has possessedmain bases for nickel production in Canada, Dominica and Norway ( to produce only refined nickel ) but the productionof ferro-nickel in Dominica has been suspended from October of 2008 by reason of maintenance to be continued for along 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 nickelproject is scheduled to be materialized in 2012 - 2013. Xstrata seems to have no powerful rights and interests in manga-nese business.

(To Be Continued On Next Page)

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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 improvethe world situation of molybdenum supply and China has suddenly rushed to import molybdenum with substantial quanti-ties, the current price of molybdenum oxide has recovered to a level of US$10.50 per lb. of Mo. An analyst has viewedthat 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 ofmolybdenum 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 energyindustry and this aspect has differed from that of nickel and chrome.

Resul ts o f Iron Ore Price Negot ia t ions for Contract Year 2009

Ni pp on St ee l

JFE Steel, Sumitomo

Metals, Kobe Steel,

Ni ss hin St ee l, PO SC O,

China Steel

BHP Billiton JF E S te el

US 97.00/ dmtu (-32.95%)

US 112.00/ dmtu (-44.47%)

Vale

Nippon Steel, Sumitomo

Metals, Nisshin Steel,P O S C O

Southeastern System

Southern System

SSF

S F C J

Blast furnace pellets

US 99.42/ dmtu (-44.47%)

US 100.94/ dmtu (-44.47%)

US 85.43/ dmtu (-28.20%)

US 89.87/ dmtu (-28.20%)

US 110.43/ dmtu (-48.30%)

June 12 Samarco Krakatau Steel DR Pellets US 125.23/ dmtu -48.30%

June 15-17 SamarcoLion Group

Nu Ir onDR Pellets US 125.23/ dmtu (-48.30%)

June 19 Vale ArcelorMittal Sourcing

Southern System

SSF

S F C J

BF Pellets

DR Pellets

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%)

June 10

US 97.00/ dmtu (-32.95%)

US 112.00/ dmtu (-44.47%)May 26-29 Hamersley Iron

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 thepreceding 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 SourcingS.C.A. and Vale, with the markdown rates for the new prices of iron ore and pellets following the previous agreementsreached 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 pelletprices 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 finesore, and 44.47% for lump ore. On June 10, Nippon Steel and POSCO settled new prices with Vale agreeing the mark-down rates of 28.20% for fines ore and 48.30% for blast furnace pellets. The settlement by ArcelorMittal following theprecedents 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 thenegotiations, of which the outcome is worth watching.

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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 DongkukSteel 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 theconstruction 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 andit 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 havenot seen concrete progress to date. Slabs produced are destined for the steel plate plant of Dongkuk Steels PohangWorks 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 steelworksincluding 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. Valeis also conceiving a plan to materialize a 2.5-Mt/a slab manufacturing plant of its own in the northern state of Par.

1,000 tons

N o n - Agglomerated Total N o n - Agglomerated TotalAgglomerated Agglomerated

Qingdao 15,083 236 15,319 46,908 739 47,647 42,869 11.1%

Shijiazhuang 8,458 137 8,596 30,057 698 30,755 18,044 70.4%

Tianjin 6,304 321 6,625 24,159 883 25,042 15,581 60.7%

Na nj in g 5,095 720 5, 81 5 17,831 1,692 19 ,52 3 11, 227 73 .9 %

Ni ng bo 2,498 82 2, 58 0 9,948 271 10 ,21 9 7,050 44 .9 %

Dalian 2,956 62 3,018 9,904 286 10,190 9,194 10.8%

Zhanjiang 1,276 80 1,357 5,731 201 5,933 3,993 48.6%Hangzhou 1,545 279 1,824 5,175 559 5,734 9,026 -36.5%

Nann in g 1,514 80 1, 59 4 4,677 251 4, 92 8 3,000 64 .3 %

W u h a n 787 28 814 3,708 28 3,736 5,658 -34.0%

Shanghai 1,435 229 1,663 3,164 466 3,630 7,916 -54.1%

Fuzhou 926 62 988 2,299 297 2,596 1,107 134.5%

Changsha 861 0 861 2,194 0 2,194 2,791 -21.4%

Taiyuan 613 69 682 1,875 214 2,089 2,109 -1.0%

Urumqi 233 285 518 847 1,190 2,037 943 116.0%

Beijing 732 0 732 1,604 0 1,604 - -

Xiamen 483 0 483 1,298 69 1,367 1,044 31.0%

He f e i 570 0 570 1,278 0 1,278 5,045 -74.7%

Nanchang 51 0 51 1,231 0 1, 23 1 255 38 2. 9%

Hohhot 663 0 663 1,151 0 1,151 842 36.7%Zhengzhou 383 0 383 1,063 0 1,063 719 47.9%

Shenzhen 279 89 368 936 89 1,025 1,060 -3.3%

Guangzhou 485 0 485 814 0 814 1,624 -49.9%

Chongqing 308 0 308 764 0 764 236 223.5%

Manzhouli 175 54 229 432 76 508 372 36.6%

Harbin 154 0 154 395 0 395 342 15.5%

Xi'an 0 0 0 158 55 213 153 39.5%

Kunming 35 0 35 205 0 205 82 149.7%

Chengdu 169 0 169 169 0 169 - -

Guiyang 0 0 0 136 0 136 567 -76.1%

Shenyang 0 0 0 135 0 135 46 194.5%

Huangpu 117 0 117 117 0 117 279 -57.9%

Jiangmen 0 0 0 41 0 41 61 -32.3%Changchun 4 0 4 26 6 32 298 -89.4%

Others 0 0 0 0 0 0 - -

Tota l 54,192 2,813 57,005 180,432 8,070 188,503 155,537 21.2%Source: China's Customs Stat ist ics

A ril 2009 Jan-A r 2009

Jan-Apr '08%

change

Chinas Iron Ore Imports In Apr 09 By Discharge Port

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- 7 -

Capesize Freight Market (Brazil - China)

0.00

20.00

40.00

60.00

80.00

100.00

120.00

Jan'06 Apr July Oct Jan'07 Apr July Oct Jan'08 April July Oct Jan'09 Apr une

US$ per ton

Bulk Shipping Market Bears Strong Tone= $49.50 / ton set on 170,000-ton Brazilian ore carrier bound for China =

[Capesize]

- 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 fortransport 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]- 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: July1 - 15.

- Japans Chubu Electric Power time-chartered the UNITED JOURNEY (82,580 dwt, 2009-built) with deliveryat Zhenjiang, China and redelivery in Japan via the east coast of Australia. Charter rate: $25,000/day. Laycanschedule: June 22 - 24. The cargo is coal.

[Panamax]- 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 unloading20,000 t/d each) Laycan schedule: July 13 - 23.

- 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.

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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 todomestic 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 correspondingprice 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 priceincrease of CR coils is on a par with the latters. In this connection, Ansteel may be taking a cautious view of how thingsgo because upward mobility of steel demand in inland areas is lower than what exists in the Shanghai area, Japansintegrated steelmakers believe.

With the price increase of CR coils for July shipments, it follows that Ansteel has raised the asking price of CRcoils 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 Kurashikidivision of the companys West Japan works. The repairs are scheduled to start in October 2009 for completion in April2010. 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 ofplunged 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 howsteel 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, aspot 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$68.50FOB.

On 22nd at the same market both selling and buying prices fell down to US$68.65 by US$0.10 and to US$68.65by 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 SouthAfrican) 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 ofACPRS coal were witnessed at US$66.50 FOB for delivery in August 2009 and US$67.00 FOB for delivery in Septem-ber 2009.

On 19th at DES ARA market, the selling price remained unchanged at US$63.00, while the buying price droppeddown 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.

19-Jun 50,000 Aug'09 63.00 ACPRS Ams/Rot

Total 50,000

Phys ARA (DES)

Realized DateQuantity

(MT)Delivery Date

Delivery

PointOrigin

Contracted Price

(US$/MT)

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Germany's Ferrous Scrap Exports In 2008 (In MT)

% Change

Share(%) Share(%) Share(%) (2008/2007)Netherlands 1,381,757 16.59 1,405,118 16.52 1,456,074 17.61 3.6

Italy 1,347,454 16.18 1,361,227 16.01 1,452,007 17.56 6.7

Luxembourg 1,737,424 20.86 1,834,227 21.57 1,297,423 15.69 -29.3

France 1,368,472 16.43 1,411,474 16.60 1,263,693 15.28 -10.5

Belgium 924,731 11.10 883,380 10.39 766,197 9.27 -13.3

Turkey 233,329 2.80 223,779 2.63 346,737 4.19 54.9

Austria 284,536 3.42 384,316 4.52 329,700 3.99 -14.2

Switzerland 308,084 3.70 286,954 3.37 293,182 3.55 2.2

Spain 191,248 2.30 192,628 2.27 282,969 3.42 46.9

India 31,860 0.38 60,064 0.71 196,259 2.37 226.7

Taiwan 223 0.00 46,225 0.54 100,174 1.21 116.7

Slovenia 92,935 1.12 63,750 0.75 70,490 0.85 10.6

Finland 45,845 0.55 56,144 0.66 49,991 0.60 -11.0

China 46,554 0.56 53,793 0.63 43,518 0.53 -19.1

Sweden 68,378 0.82 52,962 0.62 43,368 0.52 -18.1

Egypt 6 0.00 45 0.00 40,194 0.49 89220.0

Hungary 4,950 0.06 16,722 0.20 36,509 0.44 118.3

Denmark 6,124 0.07 17,061 0.20 35,989 0.44 110.9

Czech Rep. 8,399 0.10 9,766 0.11 16,841 0.20 72.4

Thailand - - 7,329 0.09 16,824 0.20 129.6

Pakistan 894 0.01 6,990 0.08 15,193 0.18 117.4

Poland 14,568 0.17 16,701 0.20 12,515 0.15 -25.1UK 14,121 0.17 18,075 0.21 11,663 0.14 -35.5

Norway 94,632 1.14 33,387 0.39 8,780 0.11 -73.7

Indonesia 490 0.01 1,525 0.02 7,059 0.09 362.9

Portugal 21,088 0.25 27,385 0.32 6,325 0.08 -76.9

Bangladesh - - 900 0.01 4,136 0.05 359.6

S.Korea 11,203 0.13 21,740 0.26 3,799 0.05 -82.5

Slovakia 3,516 0.04 671 0.01 1,598 0.02 138.2

Hong Kong 924 0.01 1,090 0.01 1,474 0.02 35.2

USA 58,023 0.70 342 0.00 1,174 0.01 243.3

Bulgaria 131 0.00 4,159 0.05 319 0.00 -92.3

Others 26,532 0.32 3,993 0.05 56,489 0.68 1314.7

Total 8,328,431 100.00 8,503,922 100.00 8,268,663 100.00 -2.8

Source: Eurostat

Jan-Dec,2007Jan-Dec,2006 Jan-Dec,2008

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 theyindicated 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%, down13.3%.

Volume

Previous Closing Price 11,570 0 11,570 0 11,600 0 11,810 0 11,850 0 11,910 0 0

Mornin Session 1st 11,570 0 11,570 0 11,600 0 11,810 0 11,850 0 11,920 0 0

Mornin Session 2nd 11,570 0 11,570 0 11,600 0 11,810 0 11,850 0 11,920 0 0

Afternoon Session 1st 11,570 0 11,570 0 11,600 0 11,810 0 11,850 0 11,920 0 0

Afternoon Session 2nd 11,570 0 11,570 0 11,600 0 11,810 0 11,850 0 11,920 0 0

Chan e form Prev. da -

Volume 0

C-COM: Central Japan Commodity Exchange ^=Limi t up , v=Limi t down, A=Ask, B=Bid , C=Choice

The number in the r igh t space o f each con t rac t month shows the vo lume .

The price is only indicat ive and not f i rm, wherever the volume of the contract month shows zero(0) .

0 10

No v- 09 Dec-09Jul-09 Au -09 Se -09 Oct-09

0 0

0 0 0

0 0 0 0

0

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

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- 10 -

(Unit: 1000MT)

M a y April May % change

*Crude Steel production 2009 2009 2 0 08 May.-09/08 2009 2008 % change

Austria 438 375 6 76 -35.2 1,939 3,310 -41.4

Belgium 440 e 424 r 1,072 -59.0 2,105 5,057 -58.4

Bul aria 65 e 60 e 1 42 -54.1 296 641 -53.8

Czech Republic 330 295 6 20 -46.8 1,659 3,034 -45.3

Finland 251 165 4 10 -38.9 992 2,011 -50.7

France 992 821 1,689 -41.3 4,747 8,220 -42.2

Germany 2,168 1,874 r 4,154 -47.8 11,318 20,230 -44.1

Greece 120 e 112 2 61 -54.0 766 1,139 -32.7

Hungary 117 98 1 93 -39.4 491 948 -48.2

Italy 1,688 1,492 2,892 -41.6 8,113 14,151 -42.7

Luxembourg 190 e 183 2 68 -29.2 868 1,344 -35.4

Nethe rl ands 32 3 32 3 r 6 67 -51.5 1, 59 5 3, 25 3 -51. 0

Poland 500 e 479 9 70 -48.4 2,426 4,516 -46.3

Romania 180 e 175 e 5 00 -64.0 885 2,432 -63.6

Slovakia 347 291 4 53 -23.4 1,407 2,214 -36.5

Slovenia 15 22 6 2 -76.3 150 296 -49.3

Spain 1,161 1,168 r 1,980 -41.3 5,388 8,781 -38.6

Sweden 214 199 4 92 -56.6 1,137 2,491 -54.3

United Kingdom 773 673 r 1,328 -41.8 3,548 6,192 -42.7

Other E.U. (27) (e) 186 e 197 e 1 86 e 0.0 875 875 0.0

European Union (27) 10,498 9,427 19,015 -44.8 50,705 91,133 -44.4Bosnia-Herzegovina 51 43 5 9 -13.8 188 252 -25.6

Croatia 2 e 3 9 -78.9 15 3 7 -60.7

Macedonia 30 e 30 e 0 131 9 3 40.4

Norw ay 51 46 5 6 -8.9 24 1 292 -17. 5

Serbia 0 11 1 73 -100.0 204 837 -75.7

Switzerland 93 33 1 18 -21.3 379 612 -38.1

Turkey 2,126 1,977 2,535 -16.1 9,577 11,715 -18.3

Other Europe 2,353 2,142 2,950 -20.3 10,734 13,839 -22.4

Byelorussia 218 236 2 32 -6.0 1,099 1,060 3.7

Kazakhstan 331 361 4 15 -20.2 1,563 1,946 -19.7

Moldova 5 e 4 8 4 -94.0 85 409 -79.2

Russia 4,678 4,374 6,804 -31.2 21,914 32,114 -31.8

Ukraine 2,351 2,140 3,917 -40.0 11,311 18,601 -39.2

Uzbekistan 65 68 5 9 10.2 310 278 11.5

C.I.S.(6) 7,648 7,183 11,511 -33.6 36,282 54,408 -33.3

Canada 750 e 700 e 1,469 -49.0 3,799 7,072 -46.3

Cuba 20 e 20 e 2 4 -18.0 84 117 -27.9

El Salvador 2 e 2 e 7 -70.6 10 3 4 -69.4

Guatemala 0 e 0 e 3 1 0.0 0 4 6 0.0

Mexico 1,100 e 1,062 1,595 -31.0 5,265 7,931 -33.6

Trinidad and Tobago 35 e 35 e 5 9 -40.3 152 214 -28.8

United States 4,310 3,799 8,733 -50.6 20,093 42,575 -52.8

North America 6,217 5,618 11,918 -47.8 29,404 57,988 -49.3

Argentina 269 279 4 99 -46.2 1,348 2,368 -43.1

Brazil 1,894 1,729 2,973 -36.3 8,624 14,514 -40.6

Chile 95 e 90 e 1 52 -37.3 431 731 -41.0

Colombia 95 e 90 e 9 9 -4.0 447 455 -1.7

Ecuador 20 e 20 e 8 159.7 94 3 8 149.9

Paraguay 5 e 5 e 7 -26.5 20 3 8 -47.4

Peru 45 e 45 e 9 9 -54.6 220 470 -53.1

Uruguay 5 e 5 e 8 -39.0 23 3 2 -27.8

Venezuela 370 e 360 e 3 56 4.0 1,822 1,672 8.9

South America 2,798 2,623 4,200 -33.4 13,029 20,317 -35.9

Algeria 28 70 7 1 -60.1 233 372 -37.5

Egypt 453 468 5 26 -13.9 2,228 2,816 -20.9Libya 95 e 87 1 16 -17.8 480 533 -10.0

Morocco 40 37 5 7 -28.8 189 232 -18.8

South Africa 600 e 580 e 7 70 -22.1 2,802 3,734 -25.0

Zimbabwe 0 e 0 e 0 0.0 0 0 0.0

Africa 1,217 1,242 1,540 -21.0 5,931 7,688 -22.8

Iran 925 949 8 29 11.6 4,737 4,207 12.6

Qatar 81 93 1 43 -43.2 428 611 -29.9

Saudi Arabia 405 433 4 48 -9.6 1,777 2,147 -17.2

Middle East 1,412 1,476 1,421 -0.6 6,942 6,965 -0.3

China 46,460 43,413 46,195 0.6 217,191 216,223 0.4

India 4,730 e 4,580 e 4,329 9.3 22,975 22,866 0.5

Japan 6,488 5,734 10,547 -38.5 29,818 51,525 -42.1

South Korea 4,240 4,094 4,808 -11.8 18,854 22,946 -17.8

Taiwan, China 1,150 e 1,115 e 1,901 -39.5 5,470 9,243 -40.8

Asia 63,068 58,936 67,779 -7.0 294,308 322,803 -8.8

Australia 318 288 6 50 -51.1 1,558 3,340 -53.4

New Zeala nd 63 59 7 8 -19.5 31 9 347 -8.1

Oceania 380 347 7 27 -47.7 1,877 3,687 -49.1

Total 66 countries 95,590 88,992 121,062 -21.0 449,212 578,828 -22.4

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

Crude Steel Production By WSA Member Countries In May 2009

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- 11 -

(Unit: 1000MT)

May April May % change

Blast Furnace Iron: 2009 2009 2008 May.-09/08 2009 2008 % change

Austria 603 492 522 15.7 1,934 2,519 -23.2

Belgium 230 e 224 674 -65.9 1,147 3,145 -63.5

Bulgaria 0 e 0 e 51 -100.0 0 256 -100.0Czech Republic 256 220 454 -43.6 1,245 2,210 -43.6

Finland 170 90 264 -35.6 603 1,278 -52.8

France 553 413 1,048 -47.2 2,710 5,003 -45.8

Germany 1,184 1,056 2,617 -54.8 6,714 12,668 -47.0

Hungary 84 75 118 -28.8 382 593 -35.6

Italy 403 432 845 -52.3 2,344 4,677 -49.9

Nether lands 280 e 280 58 1 -51.8 1,353 2,824 -52.1

Poland 170 e 166 519 -67.2 933 2,376 -60.7

Romania 125 e 120 e 302 -58.6 556 1,504 -63.0

Slovakia 285 239 363 -21.4 1,137 1,750 -35.0

Spain 164 199 r 385 -57.5 1,072 1,803 -40.5

Sweden 146 156 331 -56.0 821 1,623 -49.4

United Kingdom 607 523 r 958 -36.7 2,744 4,577 -40.1

European Union (27) 5,260 4,684 10,031 -47.6 25,694 48,806 -47.4

Bosnia-Herzegovina 43 37 0 170 0

Serbia 0 8 162 -100.0 197 791 -75.1

Turkey 546 519 621 -12.0 2,772 2,794 -0.8

Other Europe 590 564 783 -24.7 3,139 3,585 -12.4

Kazakhstan 91 95 250 -63.6 498 1,312 -62.0

Russia 3,552 3,308 4,579 -22.4 15,910 22,599 -29.6

Ukraine 2,115 1,933 3,102 -31.8 9,960 15,467 -35.6

C.I.S. 5,758 5,336 7,931 -27.4 26,368 39,378 -33.0

Canada 420 e 380 e 851 -50.6 2,203 4,168 -47.1

Mexico 320 e 309 384 -16.7 1,430 2,007 -28.7

United States 1,360 e 1,234 3,207 -57.6 6,528 14,669 -55.5

North America 2,100 1,923 4,442 -52.7 10,162 20,844 -51.2

Argentina 152 142 231 -34.2 731 1,155 -36.7

Brazil 1,692 1,554 r 2,989 -43.4 8,128 14,956 -45.7

Chile 55 e 55 e 104 -47.3 274 494 -44.6

Colombia 30 e 30 e 32 -5.7 148 110 35.4

Paraguay 5 e 5 e 9 -41.2 25 44 -44.1

Peru 0 e 0 e 37 -100.0 0 165 -100.0

South America 1,934 1,786 3,401 -43.1 9,306 16,923 -45.0

Algeria 34 72 73 -53.4 268 395 -32.2

South Africa 340 e 330 e 444 -23.4 1,614 2,166 -25.5

Zimbabwe 0 e 0 e 0 0.0 0 1 -100.0

Africa 374 402 517 -27.7 1,882 2,563 -26.6

Iran 208 209 154 35.1 1,053 885 18.9

China 45,426 41,631 42,838 6.0 209,875 201,510 4.2

India 2,460 e 2,380 e 2,245 9.6 11,996 11,924 0.6

Japan 4,875 4,384 7,495 -35.0 23,750 36,851 -35.6

South Korea 2,228 2,068 2,690 -17.2 10,081 12,815 -21.3

Taiwan, China 620 e 600 e 906 -31.6 2,994 4,224 -29.1

Asia 55,609 51,063 56,175 -1.0 258,695 267,324 -3.2

Australia 237 237 521 -54.5 1,335 2,653 -49.7

New Zealand (a) 51 45 61 -16.9 259 270 -4.1

Oceania 287 281 582 -50.6 1,594 2,924 -45.5

Total 42 countries (b) 72,121 66,248 84,016 -14.2 337,892 403,231 -16.2

Direct Reduced Iron:

Canada 0 18 84 -100.0 141 279 -49.5

Mexico 285 e 275 599 -52.4 1,452 2,735 -46.9

Trinidad and Tobago 50 e 50 e 177 -71.8 268 732 -63.4

Argentina 50 79 149 -66.7 273 832 -67.2

Brazil 0 0 22 -100.0 11 125 -91.2

Peru 10 e 10 e 8 28.2 45 34 34.3

Venezuela 540 e 520 e 590 -8.5 2,592 2,881 -10.0

Egypt 275 268 224 22.8 1,257 1,143 10.0

Libya 90 e 85 141 -36.3 377 828 -54.4

South Africa 110 e 100 e 129 -14.7 475 505 -5.9

Iran 719 748 653 10.2 3,659 3,014 21.4

Qatar 184 122 87 111.7 705 724 -2.6

Saudi Arabia 433 383 377 14.7 1,618 1,950 -17.0

India 1,800 e 1,740 e 1,650 9.1 8,940 8,100 10.4Total D.R.I.(c) 4,546 4,399 4,891 -7.1 21,812 23,880 -8.7

(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 tab le accounted for approximately 88% of total world direct reduced iron production in 2008.

5 months

Pig Iron Production By WSA Member Countries In May 2009

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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-March2009 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.

(in MT)

EU/Coal Imports Jan-Mar 2009 Jan-Mar 2008 2009-2008 09/08 (%)

Russia 12,192,832 11,454,263 738,569 6.4

South Africa 11,056,122 9,099,637 1,956,485 21.5

Colombia 7,082,660 5,819,939 1,262,721 21.7

U.S.A. 6,086,323 5,863,404 222,919 3.8

Australia 4,923,109 5,370,677 -447,568 -8.3

Indonesia 3,721,043 4,268,411 -547,368 -12.8

Poland 1,011,069 1,948,821 -937,752 -48.1

Non EU Suppress ion 844,806 0 844,806 -

Canada 712,592 1,262,143 -549,551 -43.5

Czech 432,574 490,736 -58,162 -11.9

Latvia419,719

161,068 258,651 160.6

Norway 253,008 221,009 31,999 14.5

Venezuela 242,086 687,038 -444,952 -64.8

Ecuador 163,119 0 163,119 -

Ukraine 98,398 163,372 -64,974 -39.8

Cyprus 63,123 146,995 -83,872 -57.1

St.Helena 43,461 0 43,461 -

Kazakhstan 18,888 6,848 12,040 175.8

Bulgaria 12,997 0 12,997 -

Mexico 12,131 0 12,131 -

Algeria 8,938 0 8,938 -

China 7,934 133,508 -125,574 -94.1

Egypt 289 66,021 -65,732 -99.6

Vietnam 0 105,615 -105,615 -

Cote d'Ivoire 0 60,106 -60,106 -

Brazil 0 16,465 -16,465 -Others 174,308 312,246 -137,938 -44.2

Total 49,581,529 47,658,322 1,923,207 4.0

EU/Coking Coal Imports Jan-Mar 2009 Jan-Mar 2008 2009-2008 09/08 (%)

Australia 2,979,753 3,482,773 -503,020 -14.4

U.S.A. 2,761,894 3,396,829 -634,935 -18.7

Canada 712,476 1,509,245 -796,769 -52.8

Russia 648,667 551,326 97,341 17.7

South Africa 232,428 356,809 -124,381 -34.9

Indonesia 148,439 109,117 39,322 36.0

Colombia 89,930 262,708 -172,778 -65.8

Cyprus 63,123 0 63,123 -

Norway 54,973 0 54,973 -

Poland 570 2,859 -2,289 -80.1

Lithuania 95 95 -

Venezuela 0 301,823 -301,823 -

Vietnam 0 55,000 -55,000 -

Brazil 0 16,465 -16,465 -

Others 0 257 -257 -

Total 7,692,345 10,045,211 -2,352,866 -23.4

Source: Eurostat

T u r n o v e r 1 5 - M o n t h

M o r n i n A f t e r n o o n M o r n i n A f t e r n o o n M o r n i n

Sel le r Se l l e r Se l l e r Se l le r Se l le r

Cathode per lb * $ 6 . 69 5 $ 6 . 7 6 3 $ 6 . 7 4 7 $ 6 . 8 0 4 $ 6 . 8 1 5

C a th o de p e r to n * $ 1 4 , 7 6 0 $ 1 4 , 9 1 0 $ 1 4 , 8 7 5 $ 1 5 , 0 0 0 $ 1 5 , 0 2 5

Cathode per lb * $ 6 . 89 5 $ 6 . 8 3 1 $ 6 . 9 0 8 $ 6 . 8 7 2 $ 6 . 9 7 4

Ca t h o d e p e r t o n * $ 1 5 , 2 0 0 $ 1 5 , 0 6 0 $ 1 5 , 2 3 0 $ 1 5 , 1 5 0 $ 1 5 , 3 7 5* Ca s h Se t t l e me n t

J u n . 1 8

J u n . 1 9

3 - M o n t hC a s h

LME Nickel: Official Prices For June 18 - 19

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- 13 -

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 January-March 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 Jan-Mar 2009 Jan-Mar 2008 2009-2008 09/08 (%)

Poland 508,503 664,413 -155,910 -23.5

Russia 95,108 225,327 -130,219 -57.8

China 67,925 373,030 -305,105 -81.8

Czech 59,025 175,539 -116,514 -66.4

Japan 44,000 43,383 617 1.4

Colombia 27,466 5,742 21,724 378.3

Non EU Suppression 13,490 12,264 1,226 10.0

Ukraine 11,557 21,885 -10,328 -47.2Hungary 8,803 28,914 -20,111 -69.6

U.S.A. 7,896 8,894 -998 -11.2

Bosnia-Herzegonina 3,148 0 3,148 -

Croatia 74 0 74 -

Turkey 0 64,449 -64,449 -

Australia 0 55,677 -55,677 -

Others 0 12,337 -12,337 -

Total 846,993 1,691,854 -844,861 -49.9

Source: Eurostat

(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 by129,000 MT (179.9%) from the same month last year.

The table below shows the details.( in MT)

Canada Exports Apr 2009 Apr 2008 2009-2008 09/08 (%)

S.Korea 855,962 358,838 497,124 138.5

Japan 804,518 697,456 107,062 15.4

China 200,681 71,702 128,979 179.9

Taiwan 74,378 200,118 -125,740 -62.8

Germany 58,141 163,003 -104,862 -64.3

Finland 49,064 78,326 -29,262 -37.4

U.S.A. 38,577 135,779 -97,202 -71.6

India 41 104 -63 -60.6

Tunisia 22 0 22 -

Italy 15 118,497 -118,482 -

U.K. 0 202,825 -202,825 -

Turkey 0 165,008 -165,008 -

Brazil 0 144,015 -144,015 -

Netherlands 0 92,429 -92,429 -

Slovakia 0 59,387 -59,387 -

Others 0 114,576 -114,576 -

Total 2,081,399 2,602,063 -520,664 -20.0

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- 14 -

EXCHANGE QUOTATIONS, Tokyo (Opening)2009/6/22

TTS TTB MIDDLE TTS TTB MIDDLE TTS TTB MIDDLE

yen yen yen yen yen yen yen yen yen

USD 97.19 95.19 96.19 NZD 64.11 59.01 61.56 PHP 2.11 1.87 1.99

GBP 162.41 154.41 158.41 ZAR 14.35 9.35 11.85 SGD 66.81 65.15 65.98

EUR 135.35 132.35 133.85 BHD 263.55 247.55 255.55 THB 2.90 2.74 2.82

CAD 86.14 82.94 84.54 IDR(100) - - - KWD 342.92 326.92 334.92

CHF 89.72 87.92 88.82 KRW(100) - - - SAR 26.46 24.86 25.66

SEK 12.53 11.73 12.13 CNY - - - AED 26.89 25.53 26.21

DKK 18.28 17.68 17.98 HKD 12.84 11.98 12.41 MXN 10.91 3.51 7.21

NOK 15.30 14.70 15.00 INR 2.38 1.64 2.01 PG K - - -

AUD 79.47 74.47 76.97 MYR - - - Mizuho Bank, Ltd.

2713.12.0000: PETROLEUM COKE, CALCINEDExports

Quantity

(MT)

FAS Value

(US$)

Average Price

(US$)

Quantity

(MT)

FAS Value

(US$)

Average Price

(US$)

Australia 58,541 17,833,356 304.63 230,139 73,148,987 317.85

Belgium 17 8,350 491.18 17 8,350 491.18

Brazil 31,440 13,018,000 414.06 109,366 46,596,928 426.06

Canada 72,166 24,067,947 333.51 211,551 67,526,010 319.19

Chile 0 0 - 16 18,270 1,141.88

China 79 45,236 572.61 2,298 4,301,286 1,871.75

Croatia 9000 3,330,000 274.89 9000 3,330,000 502.47

Ecuador 0 0 274.89 30 15,074 502.47

Egypt 0 0 - 238 78,464 329.68

El Salvador 0 0 - 77 54,510 707.92France 0 0 - 35 29,922 854.91

Iceland 3840 1,149,158 299.26 14076 4,467,595 317.39

India 0 0 - 31518 3,485,502 110.59

Italy 0 0 - 18309 6,411,196 350.17

Japan 137 67,728 494.36 611 322,226 527.37

Korea, South 356 135,522 380.68 1,054 443,127 420.42

Kuwait 0 0 - 8 2,918 364.75

Malaysia 0 0 - 20 9,742 487.10

Mexico 9564 1,633,540 170.80 17921 4,300,817 239.99

Mozambique 10000 3,350,000 335.00 30000 10,050,000 335.00

Netherlands 36 40,775 1,132.64 42548 33,824,309 794.97

New Zealand 0 0 - 17,013 5,534,896 325.33

Nigeria 55 48,962 890.22 132 106,436 806.33

Norway 12,553 8,796,402 700.74 61,444 28,186,318 458.73

Oman 35 21,206 605.89 53 31,734 598.75

Peru 5 4,747 949.40 5 4,747 949.40

Russia 0 0 - 3,580 6,190,239 1,729.12

Saudi Arabia 124 35,343 285.02 18,226 6,379,692 350.03

Singapore 12 3,108 259.00 29 11,574 399.10

South Africa 35,999 13,910,000 386.40 83,679 30,916,415 369.46

Spain 8,400 2,940,000 350.00 8,400 2,940,000 350.00

Thailand 0 0 - 14 9,144 653.14

United Arab Emirates 4 2,984 746.00 60 27,031 450.52

United Kingdom 0 0 - 1 2,720 2,720.00

Urguay 3 2,940 980.00 3 2,940 980.00

Vietnam 0 0 - 17 16,170 951.18

Total 252,366 90,445,304 358.39 911,488 338,785,289 371.68

Apr 2008 255,521 84,757,142 331.70 1,327,489 418,051,348 314.92

09-08 -3,155 5,688,162 26.69 -416,001 -79,266,059 56.76

09/08(%) -1.23 6.71 8.05 -31.34 -18.96 18.03

(Unit : MT)

Pet Coke, calcined

Apr 2009 Jan-Apr 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 April2009 turned out as seen at the table hereunder.

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