DATABANK - NON-AGRI COMMODITIES DATABANK - AGRI COMMODITIES

Iron ore fundamentals (million tonnes)

2010 2009 2008 2007 2006 2001
Global
Iron ore production - gross weight 2400.0 2240.0 2210.0 2040.0 1840.0 1046.4
Iron ore production - metal content - 1110.0 1130.0 1070.0 969.0 584.2
Pig iron production 1025.8 914.0 935.4 961.4 879.8 586.9
Direct reduced iron production 69.9 64.5 66.1 66.8 56.4 37.8
Iron ore apparent consumption - 2243.7 2197.0 2006.7 1805.0 -
China
Iron ore production - gross weight 900.0 880.0 824.0 707.0 601.0 220.0
Iron ore production - metal content - 280.0 270.0 233.0 198.0 72.6
Pig iron production 590.2 549.4 469.3 476.5 412.5 155.5
Direct reduced iron production 0.1 0 0.2 0.6 0.2 0.1
Iron ore apparent consumption - 1509.4 1268 1090.1 914.5 -

Imports of pig iron 1.1 3.6 0.4 0.7 0.2 0.5

Exports of pig iron 0.7 0.2 0.3 0.7 0.9 0.7
Imports of iron ore 618.6 628.2 444 383.1 326.3 92.4
Exports of iron ore 0.0091 0.0003 0.0003 0.0719 0 -
India
Iron ore production - gross weight 260.0 245.0 220.0 202.0 181.0 79.2
Iron ore production - metal content - 157.0 142.0 129.0 117.0 50.7
Pig iron production 38.7 38.2 37.3 36.5 28.3 21.9
Direct reduced iron production 26.3 23.4 20.9 20.1 15 5.7
Iron ore apparent consumption - 167.3 113.2 114.3 79 -

Imports of pig iron 0.255 0.008 0.027 0.02 0.004 0.001

Exports of pig iron 0.521 0.397 0.613 0.82 0.68 0.264
Import of iron ore - 0.62 0.6 1.12 0.81 0.30
Export of iron ore 104 114 101.4 93.7 86.8 36.6
Source: USGS, Steel Statistical Yearbook 2011, CRU, UNCTAD, DGCIS, China Customs General Administration, International Steel Statistical Bureau

World's leading iron ore producer

Country Company Capacity in million tonnes (early 2010)
Australia BHP Billiton Group 188.5
Fortescue Metals Group 55.0
Brazil Vale Group 417.1
CSN Group 28.0
China AnBen Group 44.7
Shougang Beijing Group 26.5
Wuhan Iron & Steel Group 18.6
India NMDC Group 32.6
Iran Imidro Group 29.8
Kazakhstan ENRC - Eurasian Natural Resources 19.7
Russia Evrazholding Group 50.4
Metalloinvest Group 44.7
South Africa Anglo American Group 41.1
Sweden LKAB Group 38.5
UK Rio Tinto Group 273.7
ArcelorMittal Group 78.9
Ukraine Metinvest Holding Group 42.8
USA Cliffs Natural Resources 34.6
US Steel Group 23.5
Venezuela CVG Group 37.9
Rest of the World Others 650.7
Total Capacity (All) 2177.3
Source: www.steelonthenet.com

World iron ore pelletizing capacity, 2009 (mn tonne)

Country Rated capacity
United States 56.6
Brazil 56.0
China 45.0
Ukraine 33.5
Russia 31.4
Canada 27.5
India 26.7
Sweden 21.0
Mexico 15.0
Others 58.9
Total 371.6
Source: USGS iron ore 2009 yearbook

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Trade in Ferrous Scrap (in million tonnes)

Region/year Exports Imports
2009 2010 2009 2010
European Union (27) 39.6 47.9 28 40.3
Other Europe 1.5 2.5 16.4 20.9
CIS 0.4 0.6 0.5 0.4
NAFTA 27.9 26.7 5.3 15.6
Central and South America 0.4 0.6 0.2 0.7
Africa 3.2 3.9 1.6 4.7
Middle East 0.3 0.4 0 0
Asia 11.5 9.2 30.3 24
Australia and New Zealand 2.2 2 0 1.3
World 87.8 94.8 82.5 107.9
Source: World steel in figures 2011

Economic parameters impacting iron ore prices

2010 2009 2008 2007 2006 2001
Real GDP (annual % change)
US 2.8 -2.6 1.1 2 2.9 0.8
Japan 4.3 -6.3 -0.3 1.9 2.8 0.7
Eurozone 1.8 -4.1 1 2.3 2.6 1.9
China 10.3 9.2 9 11.5 11.1 8.3
India 9.7 5.7 7.3 8.9 9.7 3.9
OECD 2.8 -3.4 1 2.6 3.2 2.4
Consumer Price Inflation (annual % change)
US 1.6 -0.3 1 2.5 2.7 2.8
Japan -0.9 -1.4 0.5 1.4 0.3 -0.7
Eurozone 1.5 0.3 1 3 2.2 2.4
China 3.1 0.8 3 5.9 2 -0.1
India 13.2 10.9 5 7 6.7 5.2
OECD 1.5 0.1 1 3 2.2 2.8
Industrial Output (annual % change)
US 7 -2.9 -11.3 1.5 3 -3.7
Japan 15.4 -21.3 -3.3 2.8 4.4 -6.3
Eurozone 8.9 -3.7 -12.4 1.3 3.9 0.4
China 15.7 11 12.9 17.4 15.4 9.9
India 2.5 18 0.5 7.6 10.3 2.1
OECD 7.9 -12.3 -2.1 3.3 3.8 -2.2
Interest rates (%)
US 0.1 0.1 0.1 4.3 6.3 1.3
Japan 0.3 0.3 0.3 0.8 0.4 0.1
Eurozone 1.8 1.8 3 5 4.5 4.3
China 3.3 2.8 2.8 3.3 3.3 3.2
India (repo rate ) 6.3 4.8 6.5 7.8 7.3 8.5
Money Supply (annual % change)
US 3.4 3.5 10 6.1 5.9 10.5
Japan 2.3 3.1 1.8 2.1 0.7 3.3
Eurozone 1.7 -0.4 7.6 11.6 10 8.0
China 19.7 27.7 17.8 16.7 16.9 14.4
India 19.1 17.7 19.9 22.8 19.3 13.6
Equity Index (end of period)
US (Dow Jones) 11578 10428 8776 13265 12463 10022
India (Sensex) 20509 17464 9647 20287 13787 3262
OECD indicators (annual % change)
OECD total monetary aggr. & comp.
broad money index 3.2 6.7 8.9 8.5 7.3 9.2
OECD Total PPI Economic Activities
Domestic Manufacturing 3.8 -4 6.8 3.2 3.7 2.0
OECD Total CPI OECD Groups Total Energy 7.8 -10.4 12.4 4 9.3 4.9
OECD Total Registration of Passenger Cars 0.5 -5.4 -7.9 -0.6 0.1 -0.8

US ISM Manufacturing Index 58.5 56.4 33.3 49 52 45.3

US auto sales (YoY % change) 11.1 15.1 -35.6 -2.9 -3.6 5.6
US pending home sales (YoY % change) -3.3 9.2 5.7 -23.9 -6.3 -
Note: Interest rates mentioned are central Bank discount rate. For India, interest rates mentioned are repo rates
Source: OECD, IMF, CPM Gold Yearbook, World Bank, Various Central Banks, BSE, NYSE

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 DATABANK - NON-AGRI COMMODITIES DATABANK - AGRI COMMODITIES

Iron Ore Production (2010e) Iron Ore Apprarent Consumption (2009)

Australia
18%
Brazil
15%
China
67%

Others
Others China 17%
15% 37%

India
India 7%
11%
Japan
Russia
5% Brazil
4% South Korea 2%
2%
Source: USGS Source: World Steel in Figures 2011

Pig iron prices on various factors

mn tonne Price
700 600
China Imports of iron ore
China finished steel consumption
600
India exports of iron ore 500
Brazilian pig iron exports prices (USS/ tonns)-RHS
500
400

400
300
300

200
200

100
100

0 0
2004 2005 2006 2007 2008 2009 2010

Source: steelonthenet, WSIF

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EDITORIALS EXPERTS' VIEWS INDIAN ECONOMY

Iron ore prices and trading activity

Month MCX futures price (Rs./kg) MCX futures trading S
Open High Low Close Volume Open Interest
Dec-10 - - - - - -
Nov-10 - - - - - -
Oct-10 - - - - - -
Sep-10 - - - - - -
Aug-10 - - - - - -
Jul-10 - - - - - -
Jun-10 - - - - - -
May-10 - - - - - -
Apr-10 - - - - - -
Mar-10 - - - - - -
Feb-10 - - - - - -
Jan-10 - - - - - -
Dec-09 - - - - - -
Nov-09 - - - - - -
Oct-09 - - - - - -
Sep-09 - - - - - -
Aug-09 - - - - - -
Jul-09 - - - - - -
Jun-09 - - - - - -
May-09 - - - - - -
Apr-09 - - - - - -
Mar-09 - - - - - -
Feb-09 - - - - - -
Jan-09 - - - - - -
Dec-08 - - - - - -
Nov-08 - - - - - -
Oct-08 - - - - - -
Sep-08 - - - - - -
Aug-08 - - - - - -
Jul-08 - - - - - -
Jun-08 - - - - - -
May-08 - - - - - -
Apr-08 - - - - - -
Mar-08 - - - - - -
Feb-08 - - - - - -
Jan-08 - - - - - -
Dec-07 - - - - - -
Nov-07 - - - - - -
Oct-07 - - - - - -
Sep-07 - - - - - -
Aug-07 - - - - - -
Jul-07 - - - - - -
Jun-07 - - - - - -
May-07 - - - - - -
Apr-07 - - - - - -
Mar-07 - - - - - -
Feb-07 - - - - - -
Jan-07 - - - - - -
Dec-06 - - - - - -
Nov-06 - - - - - -
Oct-06 - - - - - -
Sep-06 - - - - - -
Aug-06 - - - - - -
Jul-06 - - - - - -
Jun-06 - - - - - -
May-06 - - - - - -
Apr-06 - - - - - -
Note: DMTU: Dry metric ton unit; Futures prices are for near month continuous futures contract; Vol and OI in lots; Aggregate volume in all contracts during the month; Cumulative open interest in
Source: Exchanges’ websites, www.Steelonthenet.com, RBI.

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 DATABANK - NON-AGRI COMMODITIES DATABANK - AGRI COMMODITIES

Spot prices - Chennai - Rs. /dmtu Chinese imported prices - Brazilian pig iron RBI Rate USD/ INR Dollar Index
Monthly average 62% Fe fines (USD/dmtu) export prices (US$/tonne) Monthly average
6671.19 169 421 45.16 80.30
6133.76 161 425 45.02 78.45
5705.79 149 455 44.41 77.72
5609.77 141 455 46.06 81.35
5973.94 145 463 46.57 82.22
5136.82 126 476 46.84 83.43
5871.29 144 483 46.56 86.77
5953.01 161 407 45.80 85.48
6462.07 173 417 44.50 81.35
5010.42 140 390 45.50 80.81
4672.20 128 338 46.33 80.27
4402.57 126 334 45.96 77.98
- 105 317 46.63 77.00
- 99 316 46.59 75.4
- 87 335 46.72 76.17
- 81 309 48.39 77.19
- 98 294 48.36 78.53
- 84 246 48.47 79.71
- 72 309 47.78 80.26
- 63 239 48.61 82.11
- 60 471 50.08 85.55
- 64 366 51.23 86.71
- 76 395 49.22 86.84
- 73 527 48.83 84.83
- 61 614 48.64 83.65
- 61 596 49.00 86.77
- 61 699 48.64 83.53
- 61 653 45.56 78.37
- 61 605 42.94 76.21
- 61 537 42.84 72.79
- 61 471 42.82 73.41
- 61 403 42.13 73.05
- 61 366 40.02 72.38
- 61 353 40.36 72.72
- 61 346 39.73 75.77
- 61 339 39.37 76.00
- - 335 39.44 76.79
- - 331 39.44 75.67
- - 330 39.51 77.78
- - 332 40.34 79.14
- - 333 40.82 80.87
- - 333 40.42 80.61
- - 322 40.77 82.21
- - 311 40.78 82.01
- - 299 42.15 81.95
- - 292 44.03 83.17
- - 273 44.16 84.28
- - 269 44.33 84.58
- - 275 44.63 83.07
- - 284 44.85 84.72
- - 288 45.47 86.11
- - 302 46.12 85.25
- - 284 46.54 84.91
- - 259 46.46 85.61
- - 253 46.06 85.37
- - 236 45.41 84.69
- - 230 44.95 88.13
rest in all contracts at the month-end.

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