metals daily Indonesia backs Freeport s Grasberg operation, but deadline set for divestment price

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1 Volume 4 / Issue 198 / Indonesia backs Freeport s Grasberg operation, but deadline set for divestment price London Freeport-McMoRan has secured Indonesian government backing for the long-term operation of its Grasberg coppergold mining complex, the US miner said October 8, but the government has given the company a deadline of October 14 to submit a proposed divestment price for a 10.74% stake in its Indonesian operations. PT Freeport Indonesia and the government of Indonesia have engaged in productive discussions regarding PT-FI s long term operating rights and investment plans, the company said in a statement. In consideration of PT-FI s major investments and prior and ongoing commitments to increase benefits to Indonesia, including previously agreed higher royalties, domestic processing, divestment and local content, the government has assured PT-FI that the government will approve the extension of operations beyond 2021, including the same rights and the same level of legal and fiscal certainty provided under its Contract of Work, it added. Freeport holds a 90.64% stake in PT Freeport Indonesia, which operates the Grasberg mining complex. PT-FI s annual copper sales volumes are expected to be around 835 million lb (378,750 mt) this year. After the submission of the proposed divestment price, the Indonesian government will have 90 days to negotiate a fair price, a senior government official said on October 8. By October 14, Freeport has to offer a divestment price to the government. We Ferroalloys & steel China s return fails to spark moly rally; FeMo weaker London China s much-anticipated return from a week-long national holiday failed to result in a flurry of buying interest in the molybdenum oxide market, although one buyer did apparently pick up a significant quantity in the range of $4.80-$4.88/lb on a CIF Tianjin basis. We haven t seen the avalanche of buyers we saw last time round, said one Western producer source, though he noted it was only the first day back after the holiday. Many market participants have been counting on Chinese import interest to bolster a sliding oxide market, as it did earlier in the summer when prices headed down toward the $5.50/lb level before bouncing back to $6. (continued on page 2) (continued on page 2) Platts Key Metals Benchmarks Change Assessed Daily Prices Alumina PAX FOB Australia () Oct-15 Aluminum MW US Transaction premium ( /lb) Oct-15 Aluminum CIF Japan premium () NA/NA 09-Oct-15 Aluminum GW premium paid IW Rotterdam () / Oct-15 Molybdenum oxide, daily dealer () / Oct-15 Ferromolybdenum, 65% European ($/kg) / Oct-15 Platts Gold Premium 995 India PGPI995 ($/tr oz) Oct-15 Twice weekly prices MW US A-380 Alloy ( /lb) / Oct-15 Weekly prices Aluminum CIF Brazil premium () Oct-15 Aluminum CIF Korea premium () / Oct-15 Aluminum ADC12 FOB China () / Oct-15 Aluminum Alloy 226 del. European works (Eur/mt) / Oct-15 Manganese Ore, 44% Mn, CIF Tianjin ($/dmtu) Oct-15 Manganese Ore, 37% Mn, CIF Tianjin ($/dmtu) Oct-15 Moly oxide, Daily Dealer Wk Avg. () / Oct-15 Silicon, 553 Grade delivered US Midwest () / Oct-15 Magnesium, 99.8% FOB China () / Oct-15 Ferrochrome, US 65% High-Carbon IW US ( /lb) / Oct-15 Silicomanganese, 65:16 DDP NW Europe (Eur/mt) / Oct-15 Ferrosilicon, FOB China () / Oct-15 Ferrotitanium MW US, 70% () / Oct-15 Copper Grade A premium CIF Rotterdam () / Oct-15 Copper NY Dealer cathodes premium ( /lb) / Oct-15 Copper MW No.1 Bare Bright Disc ( /lb) Oct-15 Today in metals Aluminum European duty-unpaid aluminum premiums edge higher 2 Light Metals US silicon prices trickle down ahead of contract negotiations 4 Copper Teck Chile workers accept pay deal, call off copper strike 6 Ferroalloys & Steel Japanese silicomanganese, ferrosilicon prices slip 7 Precious Metals Turkey s gold imports slump 88% to 1.45 mt in Sep 8 Lead & Zinc Xingye buys Inner Mongolian lead-zinc explorer 10 Commodities LME base metals down after China returns to market metals

2 Aluminum European duty-unpaid aluminum premiums edge higher London The European physical aluminum market saw duty-unpaid premiums edge higher this week after hitting a low of $50/mt last week a level not seen since January The Platts European premium assessment for duty-paid Good Western remained unchanged at $110-$125/mt plus London Metal Exchange cash, in-warehouse Rotterdam, on October 8. The premium assessment for duty-unpaid Good Western edged higher to $60-$75/mt on October 7 from $50-$65/mt, same basis, previously. A trader said buyers came back into the market when duty-unpaid premiums hit the low last week and seem to be under the impression that $50/mt was the bottom of the market. People still have their eye on October, due to the backwardation, but customers have been coming in for tonnages, he said. The trader put the duty-unpaid premium at $60-$75, plus LME cash, in-warehouse Rotterdam and the premium for duty-paid at $110-$120/mt, same basis. Mating season starts next week with LME Week. I think longer term there could be upside to premiums, but then you never know what might happen, the trader added. A second trader said warehouses were offering incentives above $50/mt and, therefore, the market would not see premiums below that level for a long period. There s a good deal of demand from consumers and traders. Good physical demand from southern and northern Europe, but there is some nervousness around the Oct/Nov backwardation, he said. The second trader said the premium for duty-paid material was at $115-$120/mt, plus LME cash, in-warehouse Rotterdam, and the premium for duty-unpaid at $60-$75/mt, same basis. He added that for the time being he was seeing some stability, supported by buying from consumers and traders. A third trader said buyers had started buying material again. Premiums have come down, reached a bottom and the market has then stabilized, he said. Primary Aluminum Change Assessed Alumina PAX FOB Australia () Oct-15 PAX CFR China (Yuan/mt) Oct-15 PAX CFR China () Oct-15 China Ex-works (Yuan/mt) Oct-15 China Ex-works () Oct-15 Dry bulk freight: Aus-China Handysize () Oct-15 Aluminum LME HG Cash Settlement () Oct-15 LME HG Cash Settlement ( /lb) Oct-15 MW US Transaction premium ( /lb) Oct-15 MW US Transaction ( /lb) Oct-15 MW US Net-Cash premium ( /lb) Oct-15 MW US Transaction premium () Oct-15 MW US Market ( /lb) Oct-15 GW premium unpaid in-warehouse Rotterdam () / Oct-15 GW premium paid in-warehouse Rotterdam () / Oct-15 A7E premium unpaid in-warehouse Rotterdam () / Oct-15 A7E premium unpaid FOB St. Petersburg () / Oct-15 C&F China Spot () / Oct-15 C&F China Russian Grade premium () / Oct-15 C&F China Western Grade premium () / Oct-15 CIF Japan premium () / Oct-15 CIF Japan premium Q4 () / Oct-15 Japan delivered (current month) () / Oct-15 Japan delivered (2 months out) () / Oct-15 Weekly/Monthly prices Calcined Petroleum Coke FOB US Gulf Coast () / Sep-15 Caustic Soda FOB NE Asia () / Oct-15 CFR SE Asia () / Oct-15 Domestic East China Ex-works (Yuan/mt) / Oct-15 FOB Rotterdam () / Oct-15 FOB US Gulf () / Oct-15 Aluminum US Six-Months P1020 premium ( /lb) Oct-15 US 6063 Billet Upcharge ( /lb) / Oct-15 CIF Brazil premium duty-unpaid () Oct-15 Brazil DDP Southeast premium () Oct-15 Brazil Market DDP Southeast () Oct-15 CIF South Korea premium duty-unpaid () / Oct-15 Singapore in-warehouse premium () / Oct-15 Assessment Rationale US MW Aluminum Transaction Premium assessment rationale: (PMA page 0013) Platts assessed its spot 99.7% P1020 US aluminum Transaction premium unchanged at 7.15 cents/lb ($158/mt), plus LME cash, delivered Midwest, on. A trader sold 120 mt with a slight premium to 7.15 cents but did not elaborate. Another trader said he was bidding 7 cents for spot material and thought FOT Detroit metal was around 5 cents, net-30 day payment terms, which would equate to cents, delivered Midwest basis. Two consumers said they had not booked but heard of discounts and were waiting for better pricing, with one getting quoted Platts Transaction average flat for November delivery to a Southeast location. The consumer had previously been quoted a premium to Platts Transaction but had since heard discounts may be available. The other consumer said he thought he could buy below 7 cents, delivered Midwest, but was holding off purchasing. A trader also reported hearing a trader sale to a consumer at 7.75 cents for spot delivery to a normal Midwest discount location, but the deal was not confirmed. No market data were excluded from the October 8 assessment The above rationale applies to the following market data code: MMAKE00 2

3 The third trader said he never believed the $50/lb duty-unpaid deal the market was speculating over last week had actually been done. I never saw the $50/mt level myself, I don t think that deal was ever really done... I m basically saying it never happened, he said. The third trader put the duty-unpaid premium at $65-$75, plus LME cash, in-warehouse Rotterdam and the premium for duty-paid at $110-$120/mt, same basis. A fourth trader said he had not done any business this week, adding that the majority of trades for duty-paid material were taking place in a range of $105-$110/mt. There s still a lot of uncertainty the Oct/Nov backwardation, new LME rules but it s more stable now than it was earlier in the year, he said. An analyst said the market was fairly quiet in advance of LME Week. He added that the only thing of note was last week s announcement that Alcoa was to separate into two independent, publicly traded companies an upstream business unit and a downstream business unit. He said the move made it easier for the company to allocate debt and deleverage one side of the business. The analyst added that the focus for Alcoa would now be on the downstream unit where there was a lot more upside in growth and value. Greg Smart Australia alumina static despite weaker Chinese prices Sydney Australian alumina was rangebound on October 8, despite lower Chinese domestic alumina and aluminum prices. The Platts daily Australian alumina assessment remained at $262.50/mt FOB on October 8, but is down $2.50/mt from a week ago and $15.50/mt from this time last month. The front-month aluminum contract on the Shanghai Futures Exchange closed at yet another low for the year to date at Yuan 11,495/mt ($1,810.09/mt), helping drag down domestic alumina prices. But despite events in China, the Australian alumina market was relatively stable, with prospective Chinese buyers noting that import prices were already discounted to local alumina on an import Secondary Aluminum Change Assessed Old Cast ( /lb) / Oct-15 Old Sheet ( /lb) / Oct-15 US Mill-Grade MLCCs ( /lb) / Oct-15 US Smelter-Grade MLCCs ( /lb) / Oct-15 US HG Auto Shreds ( /lb) / Oct-15 US LG Auto Shreds ( /lb) / Oct-15 US Turnings ( /lb) / Oct-15 US UBCs (used beverage cans) ( /lb) / Oct-15 Painted Siding ( /lb) / Oct-15 US 6063 press scrap ( /lb) / Oct-15 Brazilian UBCs, delivered mill (Real/kg) / Oct-15 Brazilian Castings, delivered mill (Real/kg) / Oct-15 Brazilian Extrusion Profile Scrap, delivered mill (Real/kg) / Oct-15 MW US A380 ( /lb) / Oct-15 MW US 319 ( /lb) / Oct-15 MW US Sec 356 ( /lb) / Oct-15 MW US F132 ( /lb) / Oct-15 MW US A413 ( /lb) / Oct-15 MW US B390 ( /lb) / Oct-15 ADC12 FOB China () / Oct-15 ADC12 Ex-works China () NA/NA 06-Oct-15 Alloy 226 delivered European Works (Eur/mt) / Oct-15 parity basis. The yuan has also strengthened marginally against the greenback, rendering imports a little more affordable compared with two to three weeks ago, sources said. Several producer, consumer and trader sources have said they would expect China to set the tone for the alumina international open market in the near term. On October 8, Chinese participants said they would consider $272-$275/mt, CIF Lianyungang/China main port, as reasonable tradeable rates. But in FOB Australia terms, most buyers ceilings have generally been at $260/mt in the last couple of days. Platts assessed the Handysize alumina freight market from southwest Australia to northeast China unchanged at $12.15/mt on October 8, basis 30,000 mt cargoes for November loading. The assessment started the week at $12.05, before dipping to $12 on October 6 and then staging a 15 cent gain on October 7. The Platts daily China alumina assessment for Henan province fell Yuan 30/ mt to Yuan 2,220/mt ($349.58/mt) on October 8, basis ex-works, for 70:30 cash and credit payment, as the market was pressured by stockbuilding among local refiners. Platts did not publish domestic Henan alumina price assessments from October 1-7, because of the week-long National Day holidays in China. Prices in Shanxi province have also come off to Yuan 2,180-2,190/mt with partial credit, compared with Yuan 2,200/mt before the holiday. Joanna Lim LME details warehouses for aluminum premium contracts Tokyo Nine global warehouse operators will participate in the London Metal Exchange aluminum premium contract system, by offering delivery points for aluminum traded on the LME, the exchange said October 8. The so-called premium warehouses are: Henry Bath, Pacorini, Worldwide Warehouse Solutions, Erus Metals, Keystore, Metal Terminals, Vollers Group, BLG Cargo Logistics, and Independent Commodities Logistics. The delivery points for the US premium contract are: Baltimore, Chicago, Detroit, Mobile, New Orleans and St. Louis; for the West-Europe premium contract: Antwerp, Bremen, Hamburg, Moerdijk, Rotterdam and Vlissingen; for the East Asia premium contract: Busan, Gwangyang and Kaohsiung; and for the Southeast Asia premium contract Johor, Port Klang and Singapore. The premium contracts are due to be launched on November 23. The nine warehouse operators are all existing LME-approved warehouses. There 3

4 are 25 LME warehouse operators with storage facilities across 38 locations in 15 countries. Rents and other charges will be published in due course, the LME said. Metal owners are encouraged to interact directly with warehouse operators to discuss the economic terms associated with any specific conversion, the LME said. The LME is also accepting applications for premium warehouses from non-lme warehouses, Matthew Chamberlain, the exchange s head of business development, told Platts. This is the first set of warehouses.... The premium contract will be an opportunity to bring in metal, Chamberlain said. The premium warehouses do not include Metro s Detroit warehouses, which had an aluminum withdrawal waiting time of 297 days in August, or Pacorini s Vlissigen warehouse, which had a wait time of 254 days. Henry Bath s Rotterdam warehouse, with 66 days wait, has been included, however. There are no premium warehouses in Japan, which has three LME warehouse operators in Yokohama and Nagoya. Japan is one of the delivery points for the East Asia premium contract. East Asian pricing point is Japan.... But we deliberately broaden it to East Asia because LME warehouses don t hold stocks [in Japan], Chamberlain said. Japanese main port warehouse stocks were 497,700 mt at the end of August, according to trading house Marubeni. But there was no aluminum in the five LMEapproved warehouses. Warehouse reform The exchange has taken warehousing reform initiatives in the last three years in an attempt to shorten time to load out aluminum from key warehouses in Europe and the US. The measures included increasing load-out rates as well as a proposal to reduce rent for metal warrant holders who need to wait over a month to have the metal delivered. Chamberlain told Platts no warehouse has decided to quit the LME warehousing network as a result of these initiatives. The LME held a new product briefing in Tokyo on September 29 and in Singapore on Light Metals Weekly Prices Metals Week price index Change Assessed Magnesium US Die Cast Alloy Transaction ( /lb) / Oct-15 MW US Spot Western ( /lb) / Oct-15 MW US Dealer Import ( /lb) / Oct-15 European Free Market () / Oct % FOB China () / Oct-15 Die Cast Alloy FOB China () / Oct-15 Silicon 553 Grade delivered US Midwest ( /lb) / Oct Grade FOB China () / Oct Grade CIF Japan () / Oct Grade IW EU (Eur/mt) / Oct-15 Manganese Electrolytic 99.7% FOB China () / Oct-15 Titanium US Turnings 9064 ( /lb) / Oct-15 Europe Turnings 9064 ( /lb) / Oct-15 Week Month Year oct 8 Ago Ago Ago MW Base Metals MW Precious Metals MW Nonferrous Composite October 1 to introduce the aluminum premium and Platts/TSI-settled ferrous contracts, also to be launched on November 23. A briefing in Seoul is due to be held on October 28. A total of people have participated in the two briefings, including representatives from warehouse operators, banks, futures brokers, trading houses and consumers. We listen to the market.... When [aluminum] premiums were at $300/mt, we brought in reform programs to reduce queues. We see premiums fall. [Although there are] fewer people, they still want the premium contract to have a risk management [tool] going forward, Chamberlain said. There is definitely less interest as Asian aluminum premiums have reduced to one quarter of what they were a year ago, said a trader who participated in the Singapore briefing. But it is also a good entry time, as there is no risk associated with going long on the premium contract. There [is little chance of] premiums falling lower than the current level, he added. A producer noted that aluminum remained oversupplied, which meant low entry costs and low risks for new participants.. Electric appliance and cable makers participating in the Tokyo and Singapore briefings said they were considering new options for raw material purchase programs, including hedging using LME contracts. Unlike aluminum rolling mills, who have the system to pass on aluminum price moves to customers, manufacturers of consumer products are in need of pricehedging schemes, they said. Participants in the Tokyo briefing, however, said consumers were not able to choose the brand of aluminum that will be delivered from the exchange, and many consumers would rather buy from traders or producers where they are given a choice. Chamberlain said the role of an exchange was not to tailor the aluminum quality and delivery conditions to each specific consumer s needs. LME s role is to provide hedging and price discovery, he said. Mayumi Watanabe 4

5 Light Metals US silicon prices trickle down ahead of contract negotiations Pittsburgh US silicon prices were under continued pressure this week, as sellers admitted to cutting offer prices in order to make sales. The Platts US spot 553-grade silicon price assessment fell to $1.15-$1.17/lb, delivered Midwest, on October 7, from $ on September 30. A consumer reported buying two truckloads of 4 by 1/2 inch, 0.2% iron max material at $1.16, delivered Midwest, for October deliver, which may normalize slightly lower for the typical 553 specification. Another consumer booked six truckloads of high-iron material (above 1%) at $1.10, delivered Midwest for October, which would normalize to around $ for the typical 553 spec. He pegged the 553 market at $ , based on an offer he said he received last week at $1.13. Another consumer thought the market was $1.13 after booking at that level last week and a fourth consumer said he was hearing spot offers at $1.13, but thought he could buy below that. Another consumer said he was seeing offers at $ but did not yet need material. Molybdenum Dealer Oxide Weekly Averages () Week ended October 9, 2015 low High Midpoint Weekly average Daily Assessment Recap Mon,05-Oct Tue,06-Oct Wed,07-Oct Thu,08-Oct Fri,09-Oct Tonnage Volume (mt) Total 220 By region Europe 80 Japan 60 South Korea 60 India 20 United States 0 Bulk Ferroalloys Noble Alloys () Change Assessed Weekly Prices Manganese Ore 37% Mn Ore CIF Tianjin ($/dmtu) Oct-15 44% Mn Ore CIF Tianjin ($/dmtu) Oct-15 Ferrochrome Charge Chrome 48-52% in-warehouse US ( /lb) / Oct-15 Charge Chrome 52% DDP Europe ( /lb) / Oct-15 NSSC Charge Chrome 50-55% Qtrly CIF Japan ( /lb) Oct-15 Charge Chrome 48-52% CIF China ( /lb) / Oct-15 65% High Carbon in-warehouse US ( /lb) / Oct-15 65% 6-8% High Carbon DDP Europe ( /lb) / Oct % High Carbon Spot CIF Japan ( /lb) / Oct % High Carbon CIF China ( /lb) / Oct-15 Low Carbon 0.10% in-warehouse US ( /lb) / Oct-15 Low Carbon 0.10% DDP Europe ( /lb) / Oct-15 Low Carbon 0.15% in-warehouse US ( /lb) / Oct-15 Low Carbon 0.05% in-warehouse US ( /lb) / Oct-15 Ferromanganese High Carbon 78% in-warehouse US ($/long ton) / Oct-15 Medium Carbon 85% in-warehouse US ( /lb) / Oct-15 High Carbon 75% FOB China () / Oct-15 Silicomanganese 65% Mn in-warehouse US ( /lb) / Oct-15 65% Mn FOB China () / Oct-15 65% Mn CIF Japan () / Oct-15 65:16 DDP NW Europe (Eur/mt) / Oct-15 Ferrosilicon 75% Si in-warehouse US ( /lb) / Oct-15 75% Si CIF Japan () / Oct-15 75% Si FOB China () / Oct-15 75% Std DDP NW Europe (Eur/mt) / Oct-15 Change Assessed Daily Prices Molybdenum Daily Dealer Oxide () / Oct-15 Ferromolybdenum MW European 65% Ferromolybdenum ($/kg) / Oct-15 Weekly Prices Molybdenum Oxide Daily Dealer Wkl Avg.() / Oct-15 MW US FeMo () / Oct-15 60% Ferromolybdenum FOB China ($/kg) / Oct-15 60% Ferromolybdenum CIF Japan ($/kg) / Oct-15 Ferrovanadium US Free Market V205 () / Oct-15 US Ferrovanadium, 80% V () / Oct-15 Europe Ferrovanadium, 80% V ($/Kg) / Oct-15 Titanium MW US Turnings 9064 () / Oct-15 Europe Turnings 9064 () Oct-15 Ferrotitanium MW US Ferrotitanium 70% Ti () / Oct-15 Europe Ferrotitanium 70% Ti ($/kg) / Oct-15 Ferrotungsten MW Ferrotungsten ($/kg) / Oct-15 5

6 A producer said he would sell today at $1.16 after selling last week and earlier this week at $ He pegged the market at $ , calling current conditions very slow now. A second producer said he had not made any spot sales but said it was typical for prices to erode at the end of the quarter or six-month period when sellers were trying to get rid of inventory. A trader also reported sales this week of two truckloads at $ I had heard talk of lower numbers but no confirmed sales, the trader said. Another trader sold late last week at under $1.20 for a long-freight location, after starting negotiations at $1.23, but did not elaborate. One smelter source said he was able to lock in next year s contract business at Platts less 5 cents. Other consumers were still in the process of negotiating deals. Sarah Baltic Other Steel Inputs Change Assessed Daily Prices LME Nickel Cash Settlement () Oct-15 Weekly Prices Nickel NY Dealer Cathode ( /lb) / Oct-15 NY Dealer Melt ( /lb) / Oct-15 NY Dealer Plate ( /lb) / Oct-15 Cathode premium Spot US ( /lb) Oct-15 Melt premium US ( /lb) Oct-15 Plate premium Spot US ( /lb) Oct-15 Plating Grade IW Rotterdam () / Oct-15 Plating Grade premium IW Rotterdam () / Oct-15 Russia Full-Plate () / Oct-15 Russia Full-Plate premium IW Rotterdam () / Oct-15 Briquette premium IW Rotterdam () / Oct-15 In-Warehouse Singapore premium () / Oct-15 Stainless Steel Scrap NA Free Market 18-8 ($/lt) / Oct-15 Manganese Electrolytic 99.7% FOB China () / Oct-15 China magnesium post-holiday export trade thin Singapore Spot export trade in Chinese magnesium ingot remained thin on the dearth of interest from Chinese market participants so soon after the October 1-7 National Day holidays, industry sources said. The weekly assessment by Platts of magnesium ingot (minimum 99.8%) was lowered to $2,010-$2,050, FOB China, on October 8, from $2,020-$2,060/mt on September 30 ek on persistent weak demand. The Platts Chinese magnesium diecast alloy price assessment was also lowered to $2,290-$2,330/mt, FOB China, from $2,300- $2,340/mt previously. There s nothing much as we just returned from a holiday. The market will need some time to warm up, said a south Chinabased trader, who thought offers were still at pre-holiday levels of $2,050/mt FOB. A northwestern Chinese producer said he reckoned market offers were steady around $2,050/mt FOB for acid-washed grade and Yuan 12,500/mt ex-works for nonacid washed grade, while the northern Chinese analyst offers were heard steady at $2,030-$2,070/mt FOB and Yuan 12,700-13,000/mt ex-works. Prices at the lower end of the two ranges are for Shaanxi province, which has lower production cots than Shanxi. I have not bought anything this week. Last week, I checked the market and I heard offers at $2,020-2,030/mt, CFR Japan. The freight from China to Japan is about $20/mt and the FOB equivalent price is $2,000-2,010/mt, a Japanese trader said. Another Japanese trader said the fourthquarter Chinese magnesium export price was around $2,100-2,150/mt, CIF Japan, for high-grade material, unchanged from Q3, mainly due to stagnant demand, despite the slowdown in magnesium production. This Japanese trader said he had bought at this level for his Q4 requirements but declined to comment on the tonnage and the purity level. The northwestern Chinese producer reckoned that the high-grade material to be of 99.95% purity. He said the price of his high-grade material was about $50/mt more than the standard grade of 99.8% purity, while the northern Chinese analyst said the price gap between the two grades was Yuan /mt. Alvin Yee Copper Teck Chile workers accept pay deal, call off copper strike Santiago Workers at Teck s Carmen de Andacollo copper mine in northern Chile have voted to accept a pay offer and called off a planned strike, union president Manuel Gonzalez told Platts on October 8. Of 450 members who voted on October 7, 85% voted to accept the improved deal, the official said. The deal includes a 5.1% pay increase and a signing bonus worth almost Chilean Peso 11.7 million ($17,200), plus improved health and education benefits. We are very pleased to have achieved these conditions, given the state of the industry and the copper price, Gonzalez said. The Carmen de Andacollo mine, 350 kilometers north of Santiago, produced almost 72,000 mt of copper in concentrate last year. State mining firm ENAMI owns a 10% stake in the mine. Tom Azzopardi 6

7 Subdued mill demand pressures some Cu scrap spreads Washington Discount spreads for some grades of copper scrap widened slightly this week, as market sources continued to report a lack of buying interest from a major consumer sector: brass mills. The Platts spread for bare bright widened to December COMEX minus 5 cents, delivered, on October 7, from minus 4 cents on September 30. Bare bright is the one that is difficult to move, said a scrap dealer. It looks gloomy, said another scrap seller. The mills are not buying. A scrap dealer/recycler recently speculated that there was increased competition from overseas dealers selling scrap products to domestic mills. A few sources interviewed by Platts pegged the current bare-bright spread at minus 4-minus 6 cents. Minus four cents is ambitious, said a scrap seller, adding the curent discount spread was closer to minus 5 cents, based on what he had heard in the market. A trader, who put the general range at minus 4-minus 6 cents, reported selling at minus 4 cents, adding, Other people are quoting me minus 5 cents, depending on who you re talking to. However a recycler/dealer pegged the bare-bright spread at COMEX to minus 4 cents. The bigger the player, the wider the spread, he noted. The spread for No. 1 berry/candy was unchanged this week at December COMEX minus 9 cents, delivered, with most sources agreeing the number reflected the current market. Ranges heard this week for the No.1 scrap discount spread included minus 7-minus 10 cents and minus 8-minus 9 cents. The Platts spread for No. 2 birch/cliff, the type favored by Chinese buyers, narrowed to December COMEX minus 27 cents, delivered FAS, from minus 28 cents. A scrap seller said he had heard of recent deals at minus 25-minus 26 cents. There is a little demand and there s less scrap, he said. A trader said he was able to sell at minus 27-minus 27.5 cents, but added that other deals went as high as minus 29 cents. Another seller pegged the market at Copper Change Assessed Daily Prices Concentrate CIF Japan () Oct-15 Japan delivered (current month) () / Oct-15 Japan delivered (2 months out) () / Oct-15 CIF China premium () / Oct-15 Singapore in-warehouse premium () Oct-15 LME Settlement () Oct-15 COMEX Spot ( /lb) Oct-15 Weekly Prices Grade A cathode CIF Rotterdam () / Oct-15 Grade A premium CIF Rotterdam () / Oct-15 Grade A CIF Livorno/Salerno () / Oct-15 Grade A premium CIF Livorno/Salerno () / Oct-15 NY Dealer premium cathodes ( /lb) / Oct-15 MW No.1 Burnt Scrap Disc (Scrap) ( /lb) Oct-15 MW No.1 Bare Bright Disc (Scrap) ( /lb) Oct-15 MW No.2 Scrap Disc ( /lb) Oct-15 minus 26-minus 27 cents, based on the numbers he had heard in the market. A couple of sources saw the spread at about minus 28 cents. However, another seller put the market at about minus 28.5-minus 27.5 cents. There s enough interest in the US to keep the Chinese on their toes, he said. That s why the spreads are not widening too much. Laura Gilcrest COMEX copper pares losses on Fed statement Washington COMEX copper futures began to regain losses in after-hours trading on October 8, as the market took a dovish view of the US Federal Reserve s latest policy statement, that the Fed would keep shortterm interest rates steady for the remainder of the year. Copper for December delivery, the active month, lost 2.40 cents to settle a cents/lb, while the October spot contract dropped 2.45 cents to settle at cents. However, December copper got a bump to above 235 cents in after-hours trading, after trading between cents and cents during the session. A base metals analyst said the Fed statement kept on track the expectation held by many market watchers that the Fed was likely to keep rates steady at near zero for the balance of the year. The dollar made a slight move to the downside after the [Fed statement] and we saw equities make some gains, the analyst told Platts. I think it was a reiteration of the concerns that the Fed had in regards to the market and why they weren t raising rates. That brought the market to the conclusion that there are still many uncertainties out there and a bevy of factors that could allow for the Fed not to move before the end of the year. That logic is what pressured the dollar and supported metals. Adding to the Fed s reluctance to raise rates were weak payroll data released October 2. But labor data were solid on October 8, with initial jobless claims for the week ending October 3 dropping by 13,000 to a seasonally adjusted 263,000, the lowest point in about 8 weeks. Three-months copper on the London Metal Exchange was off $51 at $5,135/mt at the close. Overnight copper stocks in LME warehouses shed 2,625 mt to 305,475 mt, bringing total stock drawdowns so far this week to 13,950 mt. Laura Gilcrest Ferroalloys & Steel Japanese silicomanganese, ferrosilicon prices slip Tokyo Japan s spot import prices of silicomanganese and ferrosilicon slipped this week amid slow trade, market sources said October 8. 7

8 China was closed for public holidays over October 1-7, which slowed trade in the region. Platts assessed spot import price of standard-grade ferrosilicon (75% Si) at $1,100-$1,120/mt, CIF Japan, on October 8, down from $1,110-$1,120/mt, CIF Japan, on September 30. The Japanese spot silicomanganese (65% Mn) import market was assessed at $730-$740/mt, CIF Japan, down from $740- $750/mt previously. There were a handful electric-arc furnace steelmakers looking to buy parcels of several hundred tons each. One mill was seeking 300 mt of silicomanganese. Russian-origin ferrosilicon was heard offered at around $1,100/mt, CIF Japan, this week, while an Indian producer offered $735/ mt, CIF Japan, for around 300 mt of silicomanganese. Platts assessed the spot export price of Chinese ferrosilicon at $1,160-$1,180/mt, FOB China, unchanged. Mayumi Watanabe with Alvin Yee in Singapore Global stainless steel trade rose 12% last year: ISSF Other Base Metals Change Assessed Daily Prices Zinc Zinc IW Singapore premium () / Oct-15 LME Settlement Zinc () Oct-15 Lead LME Settlement Lead () Oct-15 North American Market ( /lb) Oct-15 Tin LME Settlement Tin () Oct-15 Twice Weekly Prices Tin Tin MW Dealer ( /lb) Oct-15 Weekly Prices Zinc US Dealer SHG ( /lb) Oct-15 MW SHG premium ( /lb) Oct-15 MW SHG Galv. premium ( /lb) Oct-15 MW SHG Alloyer No. 3 premium ( /lb) Oct-15 Europe physical SHG IW Rotterdam () / Oct-15 Europe physical SHG premium IW Rotterdam () / Oct-15 Lead North American Premium ( /lb) Oct-15 Used lead-acid batteries US Midwest ( /lb) / Oct-15 Used lead-acid batteries US Northeast ( /lb) / Oct-15 European % premium IW Rotterdam () / Oct-15 Tin Europe 99.85% IW Rotterdam () / Oct-15 Europe 99.90% IW Rotterdam () / Oct-15 Europe 99.85% premium IW Rotterdam () / Oct-15 Europe 99.90% premium IW Rotterdam () / Oct-15 London International trade in stainless steel reached million mt in 2014, up by 12% from the million mt traded in 2013, according to data from the International Stainless Steel Forum. The figures include finished stainless products and feedstock material for further processing. The biggest traded product was coldrolled flat stainless, which accounted for 47% of total stainless trade in Next was hot-rolled coil with 27% of the total. Long products represented 15.4% of total international trade, including hot rolled bar/ rod with 8.2% and cold finished bar/wire with 7.2%. Hot-rolled plate and sheet accounted for 6.7%, and trade in semis for 3.2%. Asia was the biggest exporting region, with 8.2 million mt of stainless products shipped to international markets in Most of this (5.4 million mt) went to other Asian countries, but a substantial 1.6 million mt went to Western Europe. The latter was the second-largest exporting region with 7.99 million mt shipped. After Asia and Europe, the biggest stainless importing region in 2014 was the North America Free Trade Area, which imported 1.71 million mt. This was up from 1.48 milllion mt in Asia and Western Europe were both large suppliers of stainless to NAFTA. Henry Cooke Precious Metals Turkey s gold imports slump 88% to 1.45 mt in Sep London Turkey s gold imports were 1.45 mt in September, down 88% from mt in August and 88.5% down from September 2014, data from Borsa Istanbul showed on October 8. The drop in imports came,as the price of gold rose locally on the back of recovering prices for the metal and the strength of the dollar against the Turkish lira. The record-high gold prices in local currency have doubtless reduced buying interest, said Commerzbank in a note. In September, the international gold price recovered from six-year lows seen at the beginning of August, when it came close to breaking below $1,000/oz. Imports of gold bars into India were also weak in September, down 71% to 41.7 mt, data showed last week. Physical market demand from emerging markets has been struggling recently, with the premium paid to the international price seen at a discount in India and almost zero in Istanbul. Gold premiums dropped in China this week during the seven day Golden Week holiday, and were heard as low as $2/oz. The market reopened October 8 with premiums heard higher at $4-$5/oz. George King Cassell 8

9 DGCX to launch mini WTI, India silver futures Oct 9 Singapore The UAE s Dubai Gold and Commodities Exchange will roll out two new products, namely a mini-sized WTI futures contract and an India Silver Quanto futures contract, on October 9, the commodity derivatives bourse said. The size of the mini WTI futures is 100 barrels per lot, or a tenth compared with the contract size of 1,000 barrels for the existing cash-settled WTI light sweet crude contract traded on the bourse. For the India Silver Quanto futures, the contract is sized at 1 index point contract. It is cash settled and denominated in US dollars. DGCX has been offering a similar Indian Gold Quanto futures product. A quanto is a type of derivative in which the underlying is denominated in one currency, but the instrument itself is settled in another currency at some fixed rate. The new contracts will be cleared by the Dubai Commodities Clearing Corporation, or DCCC, a wholly owned subsidiary of DGCX. DGCX said the mini WTI futures contract will provide cross margin benefits to market participants with the existing WTI futures contract and the India Silver Quanto futures contract opens trading opportunities for offshore traders in Indian silver markets. Sue Koh WGC says in talks to modernize London bullion market London The World Gold Council confirmed via Octobber 8 that it is in talks with several banks to modernize the gold market although would not confirm if that would be in the form of a central clearing hub in London, as market sources have previously suggested. The WGC is exploring a number of ways to modernize the gold market, with the aim of meeting the needs of all participants, including those within the gold mining industry, said the industry body, which represents mining companies. It noted that any solution needs to be aligned with regulatory developments, improve liquidity, increase transparency, and mitigate conduct risk even further. Last week Platts reported that the Precious Metals Assessments Change Assessed Daily Prices Platts Gold Premium 995 India PGPI995 ($/tr oz) Oct-15 Weekly Prices NY Dealer Platinum ($/oz) / Oct-15 NY Dealer Palladium ($/oz) / Oct-15 NY Dealer Rhodium ($/oz) / Oct-15 NY Dealer Iridium ($/oz) / Oct-15 NY Dealer Ruthenium ($/oz) / Oct-15 Minor Metals Weekly Prices Change Assessed Cobalt 99.8% cathode DDP Europe ( /lb) / Oct % cathode DDP US ( /lb) / Oct % Russian DDP US ( /lb) / Oct % Zambian DDP US ( /lb) / Oct-15 Antimony NY Dealer ( /lb) / Oct-15 Bismuth NY Dealer ( /lb) / Oct-15 Cadmium NY Dealer 99.95% ( /lb) / Oct-15 NY Dealer 99.99% ( /lb) / Oct-15 Indium NY Dealer ($/kg) / Oct-15 Selenium NY Dealer () / Oct-15 Rhenium NY Dealer ($/kg) / Oct-15 Assessment Rationale Platts Gold Premium 995 India Assessment Rationale: (PMA Page 314) The Platts Gold Premium 995 India was assessed at -$6/tr oz on, widening from -$5/o on October 7. Bids and offers were heard between -$3/oz and -$7/oz from a variety of bankers, traders, dealers, brokers and refiners. The majority of these indications were at -$6/oz. No data were excluded from the October 8 assessment. The above rationale applies to Platts Gold Premium 995 India assessment of 99.5% gold, with the associated data code: PMIGP00 London bullion market was seemingly unfazed by industry discussions to establish a central clearing system for gold trade, although several sources agreed that any move in that direction would be welcomed. There was talk that a handful of banks were looking to introduce a central clearing system for over-the-counter trades in light of increased regulation. Gold trade in London is undergoing change, as an increasing volume of flows move to Asia and regulation is increased. The banks in discussions include Morgan Stanley, Societe Generale, Goldman Sachs, ICBC/Standard Bank and Citigroup, according to market sources. None of the banks would comment on the matter. One source close to the situation said he had been advised to keep tight-lipped on any discussions. 9

10 Many mining companies have said they they lacked unified visibility and required a market-focused body to be better represented in talks and any resolution finally implemented. One senior mining source said that for any new system to work the producers had to be integral part of it. While banks play an important role in the market, they are middle men at the end of the day. We need for this to be a democratic process that involves miners and end-users, the source told Platts. However, a banker argued that, at the end of the day, it s the miner s job to dig the stuff up and sell it. Why do they need so much involvement? There was speculation this week that CME Group is the front-runner to be appointed as the official exchange to administrate any potential gold clearing. A senior source close to the talks simply said: The CME always aims to be in front. A banking source said that logistically it would make sense for CME as it already has the world s largest gold contract on COMEX. CME did not respond to requests for official comment. Last week the London Metal Exchange acknowledged it was also engaging the market. LME Clear is already authorized by the Bank of England to clear gold and silver forward contracts, and stands ready to work with the industry to facilitate any possible market-led solution for the clearing of OTC gold, an LME spokeswoman said by . The London Bullion Market Association is in discussions with the OTC market on publishing trade data. The LBMA, which represents refiners and acts as a proxy regulator of the industry, is already looking at publishing trade data linked to its suite of benchmark prices in an attempt to increase market transparency. The primary aim would be to open a window on the OTC market. Unlike an exchange, where trading is based around specific contract standards, an OTC market allows for a greater degree of flexibility. The LBMA has the intellectual property rights to the LBMA Gold, Silver, Platinum and Palladium Prices. The LBMA Gold Price is administrated by ICE Benchmark Administration, the LBMA Silver Price by CME Group and Thomson Reuters and the LBMA Platinum and Palladium Price by the London Metal Exchange. Ben Kilbey Lead & Zinc Xingye buys Inner Mongolian lead-zinc explorer Hong Kong Inner Mongolia Xingye Mining (IMXYM) has agreed to pay Yuan million ($5.77 million) to its parent Inner Mongolia Xingye Group for a 100% stake in Chifeng Rongbang Mining (CFRBM), which is engaged in copper, lead and zinc ore exploration in northern China s Inner Mongolia Autonomous Region. IMXYM, which operates zinc, lead and copper mines, as well as copper smelters in Inner Mongolia, said October 8 the METALS DAILY Volume 4 / Issue 198 / ISSN: Editor-in-Chief Anthony Poole, Editorial Offices Washington: Tina Allagh (Managing Editor), Nick Jonson (Associate Managing Editor) Laura Gilcrest Pittsburgh: Sarah E. Baltic London: Andy Blamey (Associate Editorial Director, EMEA), Jitendra Gill, Ben Kilbey, Greg Smart Singapore: Russ McCulloch (Senior Managing Editor, Asia-Pacific) Yuen Cheng Mok (Managing Editor, Asia-Pacific), Alvin Yee, Melvin Yeo, Hongmei Li, Vivian Teo Hong Kong: Joshua Leung; Wendy Shair Tokyo: Mayumi Watanabe Sydney: Joanna Lim Chile Correspondent: Tom Azzopardi: Advertising Tel: To reach the editors metals@platts.com New York: Fax: Washington: Pittsburgh: London: Tokyo: Singapore: Editorial Director, Metals Pricing and Market Engagement Karen McBeth, Editorial Director of Metals Joe Innace, Chief Content Officer Martin Fraenkel Platts President Imogen Dillon Hatcher General Manager, Metals Andrew Goodwin Manager, Advertisement Sales Kacey Comstock To reach Platts: support@platts.com; North America: Tel: 800-PLATTS-8; Latin America: ; Europe & Middle East: ; Asia Pacific: Platts Metals Daily is published daily by Platts, a division of McGraw Hill Financial, registered office: Two Penn Plaza, 25th Floor, New York, N.Y Officers of the Corporation: Harold McGraw III, Chairman; Doug Peterson, President and Chief Executive Officer; Lucy Fato, Executive Vice President and General Counsel; Jack F. 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11 Exchange-Traded Data and Third Party Data LME official prices Cash Aluminium () Oct-15 3-months Aluminium () Oct-15 1-year Aluminium () Oct-15 2-year Aluminium () Oct-15 3-year Aluminium () Oct-15 Settlement Aluminium () Oct-15 Cash Al Alloy () Oct-15 3-months Al Alloy () Oct-15 1-year Al Alloy () Oct-15 Settlement Al Alloy () Oct-15 Cash NA Alloy () Oct-15 3-months NA Alloy () Oct-15 1-year NA Alloy () Oct-15 Settlement NA Alloy () Oct-15 Cash Cobalt () Oct-15 3-months Cobalt () Oct months Cobalt () Oct-15 Settlement Cobalt () Oct-15 Cash Copper () Oct-15 3-months Copper () Oct-15 1-year Copper () Oct-15 2-year Copper () Oct-15 3-year Copper () Oct-15 Settlement Copper () Oct-15 Cash Lead () Oct-15 3-months Lead () Oct-15 1-year Lead () Oct-15 2-year Lead () Oct-15 3-year Lead () Oct-15 Settlement Lead () Oct-15 Cash Molybdenum () Oct-15 3-months Molybdenum () Oct months Molybdenum () Oct-15 Settlement Molybdenum () Oct-15 Cash Nickel () Oct-15 3-months Nickel () Oct-15 1-year Nickel () Oct-15 2-year Nickel () Oct-15 3-year Nickel () Oct-15 Settlement Nickel () Oct-15 Cash Tin () Oct-15 3-months Tin () Oct months Tin () Oct-15 Settlement Tin () Oct-15 Cash Zinc () Oct-15 3-months Zinc () Oct-15 1-year Zinc () Oct-15 2-year Zinc () Oct-15 3-year Zinc () Oct-15 Settlement Zinc () Oct-15 COMEX Settlements Copper Spot ( /lb) Oct-15 Copper 2 months out ( /lb) Oct-15 Copper One Year out ( /lb) Oct-15 COMEX Settlements Silver Spot (cents/oz) Oct-15 Silver 2 months out (cents/oz) Oct-15 Silver 1 year out (cents/oz) Oct-15 Gold Spot ($/oz) Oct-15 Gold 1 year ($/oz) Oct-15 NYMEX Settlements Platinum Active ($/oz) Oct-15 Palladium Active ($/oz) Oct-15 LME Closing Stocks Al Closing Stocks (mt) Oct-15 Al Alloy Closing Stocks (mt) Oct-15 NA Alloy Closing Stocks (mt) Oct-15 Copper Closing Stocks (mt) Oct-15 Lead Closing Stocks (mt) Oct-15 Zinc Closing Stocks (mt) Oct-15 Nickel Closing Stocks (mt) Oct-15 Tin Closing Stocks (mt) Oct-15 Cobalt Closing Stocks (mt) Oct-15 Molybdenum Closing Stocks (mt) Oct-15 COMEX Closing Stocks Daily Copper Stocks (lb) Oct-15 Daily Silver Stocks (oz) Oct-15 Daily Gold Stocks (oz) Oct-15 Precious Metals London Gold AM Fix ($/oz) Oct-15 London Gold PM Fix ($/oz) Oct-15 Gold H&H ($/oz) Oct-15 Gold Engelhard Unfabricated ($/oz) Oct-15 London Silver Fix, US ( /tr oz) Oct-15 London Silver Fix, Pence (p/tr oz) Oct-15 London Silver Price, ($/tr oz) Oct-15 Silver H&H ( /oz) Oct-15 Silver Engelhard Unfabricated ( /oz) Oct-15 Platinum J.Matthey Base NA ($/oz) Oct-15 Platinum J.Matthey Base Asia ($/oz) Oct-15 Platinum J.Matthey Base Europe ($/oz) Oct-15 Platinum Engelhard Unfabricated ($/oz) Oct-15 Platinum Engelhard Asia ($/oz) Oct-15 Palladium J.Matthey Base NA ($/oz) Oct-15 Palladium J.Matthey Base Asia ($/oz) Oct-15 Palladium J.Matthey Base Europe ($/oz) Oct-15 Palladium Engehlard Unfabricated ($/oz) Oct-15 Palladium Engelhard Asia ($/oz) Oct-15 Rhodium J.Matthey Base NA ($/oz) Oct-15 Rhodium J.Matthey Base Asia ($/oz) Oct-15 Rhodium J.Matthey Base Europe ($/oz) Oct-15 Rhodium Engelhard ($/oz) Oct-15 Rhodium Engelhard Asia ($/oz) Oct-15 Iridium J.Matthey Base North America ($/oz) Oct-15 Iridium Engelhard Unfabricated ($/oz) Oct-15 Iridium Engelhard Asia ($/oz) Oct-15 11

12 Metals Week A WEEKLY SUPPLEMENT TO METALS DAILY October 2, 2015 Daily prices Alumina units 05 Oct Oct Oct Oct Oct 15 Week avg PAX FOB Australia PAX CFR China PAX China Ex-works NA NA NA DBF Aus-China Handysize Aluminum LME HG Cash / / / / / LME HG 3-Month / / / / / LME HG Settlement LME HG Y / / / / / LME HG Y / / / / / LME HG Y / / / / / LME Alloy Cash / / / / / LME Alloy 3-Month / / / / / LME Alloy Settlement LME Alloy Y / / / / / LME NA Alloy Cash / / / / / LME NA Alloy 3-MO / / / / / LME NA Alloy Settlement LME NA Alloy Y / / / / / LME HG inventories mt NA LME Alloy inventories mt NA LME NA Alloy inventories mt NA MW US Transaction MW US Trans premium MW US Net-Cash Prem MW US Market MW US A-380 Alloy / NA/NA NA/NA / NA/NA MW US / NA/NA NA/NA / NA/NA MW US Sec / NA/NA NA/NA / NA/NA MW US F / NA/NA NA/NA / NA/NA MW US A / NA/NA NA/NA / NA/NA MW US B / NA/NA NA/NA / NA/NA US Old Cast / NA/NA NA/NA / NA/NA US Old Sheet / NA/NA NA/NA / NA/NA US Mill-grade MLCCs / NA/NA NA/NA / NA/NA US Smelter-grade MLCCs / NA/NA NA/NA / NA/NA US HG Auto Shreds / NA/NA NA/NA / NA/NA US LG Auto Shreds / NA/NA NA/NA / NA/NA US Turnings / NA/NA NA/NA / NA/NA C&F China spot / / / / / C&F China LME premium / / / / / C&F China-Russian Grade / / / / / Japan del (current mo) / / / / / Japan del (2 mos. out) / / / / / CIF Japan premium / / / / / CIF Japan premium Q / / / / / GW premium paid IW Rotterdam / / / / / GW premium unpaid IW Rotterdam / / / / / A7E premium unpaid IW Rotterdam / / / / / A7E premium unpaid FOB St Petersburg / / / / / Copper COMEX HG 1st Position COMEX HG 2nd Position COMEX HG 3rd Position COMEX inventories st LME Grade A Cash / / / / / LME Grade A 3-Month / / / / / LME Settlement LME Grade A Y / / / / / Metals

13 Daily prices units 05 Oct Oct Oct Oct Oct 15 Week avg LME Grade A Y / / / / / LME Grade A Y / / / / / LME inventories mt NA US Transaction Japan del (current mo) / / / / / Japan del (2 mos. out) / / / / / S pore in-warehouse premium / / / / / C&F China / / / / / Zinc LME SHG Cash / / / / / LME SHG 3-Month / / / / / LME Settlement LME SHG Y / / / / / LME SHG Y / / / / / LME SHG Y / / / / / LME inventories mt NA MW North America SHG MW North America GAL MW Alloyer No Lead LME Cash / / / / / LME 3-Month / / / / / LME Settlement LME Y / / / / / LME Y / / / / / LME Y / / / / / LME inventories mt NA North American Market Nickel LME Cash / / / / / LME 3-Month / / / / / LME Settlement LME Y / / / / / LME Y / / / / / LME Y / / / / / LME inventories mt NA Tin LME Cash / / / / / LME 3-Month / / / / / LME 15-Month / / / / / LME Settlement LME Inventories NA MW NY Dealer NA NA NA Cobalt LME Cash / / / / / LME 3-Month / / / / / LME 15-Month / / / / / LME Settlement Molybdenum/Ferromolybdenum LME Cash / / / / / LME 3-Month / / / / / LME 15-Month / / / / / LME Settlement Daily Dealer Oxide 5.100/ / / / / MW Europe 65% Ferromolybdenum $/kg / / / / / Gold Platts Gold Premium 995 India $/tr oz COMEX 1st Position $/tr oz COMEX 2nd Position $/tr oz Comex Inventories tr oz Engelhard Unfabricated $/tr oz Handy & Harman $/tr oz London Final $/tr oz London Initial $/tr oz

14 Daily prices units 05 Oct Oct Oct Oct Oct 15 Week avg PGMs Palladium Nymex Nearby $/tr oz J.Matthey Base NA $/tr oz J.Matthey Base Asia $/tr oz J.Matthey Base Europe $/tr oz Engelhard Unfabricated $/tr oz month borrow rate % NA NA NA NA NA NA Engelhard Industrial Asia $/tr oz NA NA NA Platinum Nymex Nearby $/tr oz J.Matthey Base NA $/tr oz J.Matthey Base Asia $/tr oz J.Matthey Base Europe $/tr oz Engelhard Unfabricated $/tr oz month borrow rate % NA NA NA NA NA NA Engelhard Industrial Asia $/tr oz NA NA NA Iridium J.Matthey Base NA $/tr oz Engelhard Unfabricated $/tr oz Engelhard Industrial Asia $/tr oz NA NA NA Rhodium J.Matthey Base Asia $/tr oz J.Matthey Base Europe $/tr oz J.Matthey Base NA $/tr oz Engelhard Unfabricated $/tr oz Engelhard Industrial Asia $/tr oz NA NA NA Ruthenium J.Matthey Base NA $/tr oz Engelhard Unfabricated $/tr oz Engelhard Industrial Asia $/tr oz NA NA NA Silver COMEX 1st Position cts/tr oz COMEX 2nd Position cts/tr oz COMEX 3rd Position cts/tr oz Comex Inventories tr oz Handy & Harman cts/tr oz Engelhard Unfabricated cts/tr oz London Fix, Pence p/tr oz London Fix, US cts/tr oz London Silver Price $/tr oz Exchange rates Bank of Canada Exchange Rates US$ per GBP noontime US$ per Aust$ Noontime US$ per JpnYen Noontime US$ per EURO Noontime LME Rates LME Sterling LME Yen LME Euro

15 Weekly prices Major Metals change/date assessed Aluminum US Six-Months P US 6063 Billet Upcharge / / US UBCs / / US Painted Siding / / US 6063 press scrap / / CIF Brazil premium duty-unpaid DDP SE Brazil premium DDP SE Brazil market CIF South Korea premium duty-unpaid Singapore in-warehouse premium / / Eur/mt Alloy 226 delivered European works / / ADC12 FOB China / / Yuan/mt ADC12 ex-works China / / Calcined Petroleum Coke (Monthly) FOB US Gulf Coast / / Caustic Soda FOB NE Asia / / CFR SE Asia / / Domestic East China Ex-works / / FOB Rdam / / FD NWE CP / / FOB US Gulf / / FOB US Plant / / US Contract / / Copper MW No.1 Burnt Scrap Disc MW No.1 Bare Bright Disc MW No.2 Scrap Disc NY Dealer Premium cathodes range / / NY Dealer Prem cathodes mean Grade A Cathode CIF R dam / / Grade A Premium CIF R dam / / Grade A CIF Livorno/Salerno / / Grade A Prem CIF Livorno/Salerno / / Russian Standard CIF R dam / / Russian Standard Prem CIF R dam / / Lead North American Premium Used lead-acid batteries US Midwest / / Used lead-acid batteries US Northeast / / European dealer / / European % Prem IW (R dam) / / Nickel NY Dealer/Cathode / / NY Dealer/Melting / / NY Dealer/Plating / / NY Dealer/cathode Premium NY Dealer/Melting Premium NY Dealer/plating Premium Plating Grade IW R dam / / Plating Grade Prem IW R dam / / Russia Full-Plate / / Russia Full-Plate Prem IW R dam / / Briquette Premium IW R dam / / In-Warehouse S pore Prem / / change/date assessed Tin Europe 99.85% IW R dam / / Europe 99.85% Prem IW R dam / / Europe 99.90% IW R dam / / Europe 99.90% Prem IW R dam / / Zinc US Dealer SHG MW SHG Premium MW SHG Galv. Prem MW SHG Alloyer #3 Prem Europe physical SHG IW R dam / / Europe physical SHG Prem IW R dam / / In-Warehouse S pore Prem / / Precious Metals all PGM figures in $/tr oz Iridium MW NY Dealer / / Palladium MW NY Dealer / / Platinum MW NY Dealer / / Rhodium MW NY Dealer / / Ruthenium MW NY Dealer / / Minor Metals Antimony MW NY Dealer / / Arsenic MW Dealer / / Bismuth MW NY Dealer / / Cadmium MW NY Dealer / / Free Market HG / / Indium $/kg Producer: US Prod Indium Corp $/kg MW NY Dealer / / Mercury $/fl Free Market International / / U.S. Domestic / / Rhenium $/kg MW NY Dealer / / Selenium MW NY Dealer / / Light Metals Magnesium US Die Cast Alloy: Transaction / / MW US Spot Western / / MW US Dealer Import / / Europe Free Market / / Die Cast Alloy FOB China / / % FOB China / /

16 Weekly prices change/date assessed change/date assessed Silicon 553 Grade Delivered US Midwest / / Grade, FOB China / / Grade, CIF Japan / / Eur/mt 553 Grade, In-warehouse EU / / Titanium MW US 70% Ferrotitanium / / $/kg Eur. 70% Ferrotitanium / / MW US Turning 0.5% / / Eur. Turning.5% / / Ferroalloys Cobalt MW 99.8% US Spot Cathode / / % European / / % Russian / / % Zambian / / Ferrochrome Charge Chrome 48-52% in-warehouse US / / % High Carbon in-warehouse US / / Low Carbon 0.05% in-warehouse US / / Low Carbon 0.10% in-warehouse US / / Low Carbon 0.15% in-warehouse US / / Charge Chrome 52% DDP NWE / / % 6-8% High-Carbon DDP NWE / / Low Carbon 0.10% DDP NWE / / Charge Chrome 48-52% CIF China / / % High Carbon CIF China / / NSSC Charge Chrome 50-55% Qtrly CIF Japan % Spot CIF Japan / / Ferromanganese $/gt High Carbon 76% in-warehouse US / / Medium Carbon 85% Mn in-warehouse US / / High Carbon 75% FOB China / / Ferromolybdenum MW US FeMo / / $/kg 60% Ferromolybdenum FOB China / / % Ferromolybdenum CIF Japan / / Ferrosilicon 75% Si in-warehouse US / / % Si CIF Japan / / % Si FOB China / / Eur/mt 75% Std DDP NWE / / Ferrovanadium Free Market V / / US Ferrovanadium / / $/kg Europe Ferrovanadium / / Manganese Electrolytic 99.7% FOB China / / $/dmtu 44% Manganese Ore CIF Tianjin % Manganese Ore CIF Tianjin Silicomanganese 65% Mn in-warehouse US / / % Mn FOB China / / % Mn CIF Japan / / Eur/mt 65:16 DDP NWE / / Stainless Scrap $/gt NA FREE MKT / / Tungsten $/stu MW US Spot Ore / / APT-US / / $/kg MW Ferrotungsten / /

17 Monthly Prices September 2015 last % Last % Month Chg. Year Chg. High Low Major Metals ALUMINA PAX FOB Australia PAX CFR China PAX China Ex-works DBF Aus-China Handysize CAUSTIC SODA FOB NE Asia CFR SE Asia ALUMINUM MW US Transaction MW US Trans Premium MW US Net-Cash Premium MW US Market LME HG Cash LME HG 3-Mo LME Settle LME HG Y LME HG Y LME HG Y LME Alloy Cash LME Alloy 3-Mo LME Alloy Sett LME Alloy Y LME NA Alloy Cash LME NA Alloy 3-Mo LME NA Sett LME NA Alloy Y GW paid IW R dam mean GW paid IW R dam low NA NA GW paid IW R dam high NA NA GW unpaid IW R dam mean GW unpaid IW R dam low NA NA GW unpaid IW R dam high NA NA A7E unpaid IW R dam A7E FOB St. Petersburg CIF Japan premium CIF South Korea premium NA NA CIF Brazil Premium Brazil DDP SE Prem Brazil Market DDP SE Eur/mt Alloy 226 del Eur MW A-380 Alloy MW MW MW F MW US A MW US B US Old Cast US Old Sheet US Mill-grade MLCCs US Smelter-grade MLCCs US HG Auto Shreds US LG Auto Shreds US Turnings US 6063 Billet Upcharge US 6063 Press Scrap Painted Siding US UBCs COPPER COMEX HG 1ST Pos COMEX HG 2ND Pos COMEX HG 3RD Pos LME Grade A Cash LME Grade A 3-Mo LME Settle LME Grade A Y LME Grade A Y LME Grade A Y MW No.1 Burnt Scrap MW No.1 Bare Bright MW No.2 Scrap NY Dlr Prem Cath US Transaction LEAD LME Cash LME 3-Mo LME Settle LME Y LME Y LME Y North American Market Used lead-acid batteries USMW Used lead-acid batteries USNE NA NA TIN LME Cash LME 3-Mo LME 15-Mo LME Settle MW NY Dealer ZINC LME SHG Cash LME SHG 3-Mo LME Settle LME SHG Y LME SHG Y LME SHG Y MW NA SHG MW NA GAL MW Alloyer NO Precious Metals last % Last % Month Chg. Year Chg. High Low GOLD $/tr oz Platts Gold Premium 995 India NA NA COMEX 1ST Pos COMEX 2ND Pos Engelhard Unfab Handy& Harman London Final London Initial PALLADIUM $/tr oz JM Base NA Engelhard Unfab NYMEX EX NEARBY MW Dealer mean MW NY Dealer

18 Monthly Prices September 2015 last % Last % L last % Last % Month Chg. Year Chg. High Low Month Chg. Year Chg. High Low PLATINUM $/tr oz JM Base NA Engelhard Unfab NYMEX EX NEARBY NY Dealer mean NY Dealer RHODIUM $/tr oz NY Dealer Dealer mean JM Base N. AMERI Engelhard Unfab SILVER cts/tr oz, P/tr oz, $/tr oz COMEX 1ST Pos COMEX 2ND Pos COMEX 3RD Pos Handy& Harman Engelhard Unfab London Fix, Pence London Fix, US London Silver Price ($/tr oz) Minor Metals ANTIMONY NY Dealer CADMIUM NY Dealer MERCURY $/FL Free Market US Domestic SELENIUM $/FL NY Dealer Light Metals MAGNESIUM US Die Cast Alloy Trans US Spot West mean US Dlr Import mean % FOB China Die Cast Alloy FOB China SILICON 553 Grade Del US Midwest Grade CIF Japan Grade FOB China TITANIUM $/FL MW US 70% Ferro MW US Turning 0.5% Ferroalloys COBALT 99.8% US Spot cath m LME Cash LME 3-Mo LME 15-Mo LME Settle FERROCHROME In-WarehouseUS 65% High Carbon Mean % High Carbon Low % High Carbon Low Low Carbon.10% Mean Low Carbon.10% Low Low Carbon.10% High Low Carbon.05% Mean Low Carbon.05% Low Low Carbon.05% High FERROMANGANESE In-Warehouse US Medium Carbon 85% Mn Mean Medium Carbon 85% Mn Low Medium Carbon 85% Mn High $/gt High Carbon 76% Mean High Carbon 76% Low High Carbon 76% High FERROMOLYBDENUM US FeMo mean Europe 65% mean STAINLESS SCRAP $/lt NA FREE MKT FERROSILICON In-Warehouse US 75% Si Mean % Si Low % Si High FERROVANADIUM US Ferrovanadium MANGANESE $/dmtu 44% Mn Ore CIF Tianjin % Mn Ore CIF Tianjin NA NA MOLYBDENUM Dealer Oxide Midpoint/Mean Dealer Oxide Low Dealer Oxide High LME Cash LME 3-Mo LME 15-Mo LME Settle NICKEL NY Dealer/Cathode NY Dealer/Melt LME Cash LME 3-Mo LME Settle LME Y LME Y LME Y SILICOMANGANESE In-WarehouseUS 65% Mn Mean % Mn Low % Mn High Exchange Rates GBP noontime Aust$ Noontime JpnYen Noontime EURO Noontime