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Interfax China Metals & Mining Weekly 13,330 words 8 June 2012 11:57 Interfax: China Mining

Interfax China Metals & Mining Weekly

13,330 words 8 June 2012

11:57

Interfax: China Mining & Metals Weekly CHNMET English (c) 2012 Interfax Information Services, B.V.

The consolidation of the rare earths industry in south China has taken a step forward after Guangdong became the first province in the region to release a detailed plan for industry restructuring last week. Guangdong Rare Earth Industry Group (GRIEG), a unit of state-owned Guangdong Rising Assets Management Co. Ltd. (GRAM), was singled out to lead the consolidation, and is also likely to be chosen as one of three firms that will oversee the restructuring of the industry in the wider south China region.

But the ultimate beneficiary of the plan could in fact be another GRAM subsidiary, its listed rare earths unit Guangdong Rising Nonferrous Metals Group Co. Ltd. GRAM may choose to inject the assets accumulated by GRIEG in the consolidation process into the listed subsidiary, said analysts.

Deal activity is heating up in China ’s gold space meanwhile as miners vie for domestic and overseas resources to meet the nation’s burgeoning demand for the yellow metal. Attractive valuations of target companies due to low gold prices are also adding to the action.

Two major deals were announced June 1, with state-owned Shandong Gold Group agreeing to acquire majority stakes in two Shandong-based miners for a combined price of RMB 3.8 billion ($597 million), and Zijin Mining Group offering AUD 180.3 million ($174.78 million) for all outstanding shares in Norton Gold Fields Ltd. Zijin currently owns a 16.98 percent stake in the Australian miner.

Zijin furthermore increased its presence in Tajikistan after reaching an agreement on copper production with the government during President Emomali Rahmon’s state visit to China . The miner currently owns a 75 percent stake in Zeravshan Gold Co., a joint venture (JV) with the Tajik government which in 2011 accounted for 59.3 percent of the country’s gold output.

In other news, China ’s three leading ferromolybdenum producers reduced their prices this week, potentially ushering in an industry consolidation as smaller players are forced out of the business amid low profit margins.

Please direct any questions, comments or suggestions regarding China Metals & Mining Weekly to the editor, Orlando Bowie ().

Rare earths consolidation has taken a step forward in south China after Guangdong became the first province in the region to release a detailed plan for industry restructuring last week.

The document gives a leading role to Guangdong Rare Earth Industry Group (GREIG), a unit of state-owned Guangdong Rising Assets Management Co. Ltd. (GRAM) that was established in February to act as a regional consolidation platform. GRIEG moreover has a strong chance of being chosen as one of the three leading players that will control 80 percent of the heavy rare earths industry in south China between them as part of a restructuring plan issued by the State Council in May last year.

Guangdong aims to finish consolidating its miners and smelters by 2013 and to have a full industry chain in place by 2015. The document targets improvements in new materials technology and lays out plans for a strategic provincial reserve of key rare earth oxides.

The province furthermore intends to build two or three rare earths industry parks in a bid to attract overseas investment, and will also encourage GREIG to acquire overseas rare earths resources and deep-processing firms to increase its international influence under China ’s “Go Out” policy.

Page 1 of 28 © 2012 Factiva, Inc. All rights reserved.

But the ultimate beneficiary of the plan could in fact be another GRAM subsidiary, namely the group’s only listed rare earths unit, Guangdong Rising Nonferrous Metals Group Co. Ltd. (GRNW).

Once the consolidation is finished, GRAM may choose to inject GRIEG’s assets into the listed unit. “It’s possible that the company will list the new assets separately, but injecting them into GRNW would be much easier,” Ye Xin, an analyst with Anxin Securities, told Interfax.

GRNW’s growing importance in the local industry is reflected in its share price on the Shanghai Stock Exchange, which has surged by about 100 percent this year to date.

The consolidation process meanwhile is likely to play out as a competition for influence between centrally-controlled state-owned enterprises (SOE) and those controlled by local governments, Ye noted. Resources and mining rights are largely in the hands of local SOEs, which will be unwilling to cede them to their centrally-controlled peers.

On the regional stage, locally-controlled GRIEG could be competing with national giants like Minmetals, Chinalco and China Nonferrous Metal Mining Corp. (CNMC), which have all established a presence in south China through acquisitions or by setting up smelters.

While the rare earths industry in Guangdong is more fragmented than in Inner Mongolia, where consolidation efforts have already made significant ground, a high industry concentration relative to the rest of south China and GRAM’s prominence as a large locally-owned SOE make the province an obvious starting point for regional consolidation.

Neighboring Jiangxi has more rare earths resources than Guangdong, but the presence of metals giants such as Minmetals and CNMC will increase the friction between locally- and centrally-controlled firms and could hamper the consolidation, Huatai Securities analyst Liu Minda told Interfax.

In another major policy development to emerge from the industry last week, China is considering establishing national rare earths stockpiles, China Securities Journal reported last Friday citing official sources. In order to quell price fluctuations like those seen in 2011, the Ministry of Industry and Information Technology (MIIT) is considering a system to allow strategic buying and selling in which producers buy up surplus supply when prices fall and sell when prices rise.

China is the world's largest producer of rare earth metals which are critical for the manufacture of high-tech products ranging from cell phones to missiles. China ’s deposits of heavy rare earths, which are more valuable and scarce than light rare earths, are concentrated in south China in provinces such as Jiangxi, Fujian, Guangdong, Hunan and the Guangxi Zhuang Autonomous Region.

Tangshan Iron & Steel Co. Ltd. (Tangsteel) has become the first Chinese steelmaker to enter a structured financing agreement with foreign partners after securing the backing of Swiss steel trader Duterco SA for a $270-million loan from six major banks, the state-owned firm announced Wednesday.

Tangsteel’s deal with the world’s second largest steel trader could pave the way for similar arrangements involving other Chinese steelmakers, offering a further solution for the funding problems wracking the industry.

Under the agreement, Duterco will provide collateral to the banks for a loan to fund Tangsteel’s operating costs for the production of cold-rolled products, and will also act as international distributor for the goods. The six banks are Deutsche Bank, ABN AMRO, DBS Group, United Overseas Bank (UOB), HSBC and Natixis.

Tangsteel and Duterco have been working together since 2009 and Tangsteel exported 1.07 million tons of cold-rolled products through the Swiss trader in 2011, accounting for one-sixth of China ’s cold-rolled exports. The Chinese steelmaker boosted profits by RMB 200 million ($31.65 million) last year by selling on the higher-priced international market rather than in China .

As well as the price premium on the global market, the firm benefited from a 13-percent customs tax rebate in China for cold-rolled exports, said Umetals analyst Hu Yanping.

Despite the first interest rate reduction in more than three years on Thursday and two cuts in bank reserve requirement ratios (RRR), China ’s steel industry continues to face funding problems, though the difficulties may ease to some extent in the second half, Hu added.

Dwindling profits amid weak downstream demand and low steel prices have taken their toll on the balance sheets of Chinese steelmakers and contributed to the funding difficulties. Net industry earnings were down 57 percent on Page 2 of 28 © 2012 Factiva, Inc. All rights reserved.

yearly basis in the first four months of 2012 compared to an average decline of only 1.6 percent across China ’s light and heavy industries, according to the National Bureau of Statistics (NBS).

Figures from the National Development and Reform Commission (NDRC) meanwhile show first quarter (Q1) profits down 67.8 percent from a year ago at RMB 18.33 billion ($2.9 billion).

Tangsteel is part of state-owned Hebei Iron & Steel Group, one of China ’s leading steel producers.

Iron ore stockpiles at China 's ports increased this week as higher steel billet prices and lower iron ore prices encouraged purchases by steel producers, while Thursday’s interest rate cut could encourage more buying coming weeks.

Reserves at 30 major ports were up 0.99 percent at 96.66 million tons on Friday, including 10.24 million tons of Indian iron ore, down 0.29 percent, according to Shanghai-based Mysteel Information.

In the futures market, Australian PB, Indian iron ore grading 63.5 percent, and Brazilian fine grading 63 percent stood at $133, $136 and $131 respectively, down $2, $1.5 and $4 from last week.

The quoted price for Indian iron ore grading 63.5 percent at Tianjin port stood between RMB 1,005 ($159.02) and RMB 1,015 ($160.6) per ton on June 8, down RMB 5 ($0.79) from a week ago.

Iron ore stockpiles at China 's 30 major ports, June 8

Port

Indian ore (mln tons) Detainment

Total (mln tons) Australian ore (mln tons) Brazilian ore (mln tons)

Bayuquan

2.74

1.15

1.28

0.08

None

Dandong

0.5

0.25

0.1

0

 

None

Qinghuangdao 0.6

 

0.25

0.1

0.1

None

Dalian

4.2

1.48

1.72

0

 

None

Tianjin

5.7

3.7

0.9

0.8

None

Jingtang

6.4

2.3

1.3

1.3

None

Caofeidian

13.35

5.1

4.04

2.12

None

Yantai

2.4

1.5

0.8

0

 

None

Longkou

0.16

0.15

0

0

 

None

Qingdao

14

5.3

4.2

1.6

None

Rizhao

14.2

5.9

4.7

1.8

None

Lanshan

4.6

1.8

0.25

1.12

None

Lianyungang

5.9

3.1

0.85

0.35

None

Nantong

1.35

0.7

0.4

0

 

None

Nanjing

1

0.25

0.25

0.05

None

Taicang

2.1

1.3

0.6

0

 

3-4 days

Jiangyin

1.05

0.2

0.15

0.5

None

Zhenjiang

3.1

0.6

0.65

0.15

None

Changzhou

0.35

0.15

0.1

0

None Page 3 of 28 © 2012 Factiva, Inc. All rights reserved.

Zhangjiagang 0.4

 

0.03

0.1

0

None

Beilun

2.65

1.1

0.65

0

 

None

Luojing

1.85

1.15

0.2

0.1

None

Fuzhou

0.62

0.11

0.17

0

 

None

Xiamen

0.5

0.08

0.11

0.03

None

Mawan

0.21

0.21

0

0

 

None

Guangzhou

0.26

0.17

0

0

 

None

Zhanjiang

2.4

0.8

0.5

0

 

None

Quanzhou

0.44

0.1

0

0

 

None

Fangchenggang 3.4

 

1.6

0.7

0.14

None

Qinzhou

0.23

0

0

0

 

None

Total

96.66

40.53

24.82

10.24

N/A

Source: Mysteel

Zinc output is on the rise in China as smelters resume production after completing upgrades to meet new environmental standards, though uncertainty remains over the sustainability of increased output in the second half (H2) in the face of low zinc prices and summer maintenance work, analysts told Interfax.

Leading producer Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. (NONFEMET) finished upgrading its Danxia smelter in Guangdong’s Shaoguan City at the end of last month, while improvements to its nearby Fankou lead-zinc mine were completed at the end of March, the firm said over the weekend.

The firm usually starts annual maintenance work in early May, but local environmental authorities ordered it to begin two months earlier than usual after high blood lead levels were found in children in the surrounding area. Lead is a by-product of the zinc smelting process.

The firm now expects output of 6,000 tons from its Fankou mine in June, rising to 9.000 tons in July, according to

a report from consultancy Fubao Information that cites a company source close to the matter.

A number of smelters in the major production areas of Hunan and the Guangxi Zhuang Autonomous Region

meanwhile resumed production mid- to late-April.

Authorities in Guangxi had shut down all zinc smelters in Hechi City in January after chromium pollution was detected in the Longjiang River. And some small smelters in Hunan brought forward maintenance work to the end of January in the face of sliding prices, and resumed production at the end of April when prices strengthened.

Prices climbed 1.12 percent through April to RMB 15,639 ($2,474.53), while China ’s output was down 5.48 percent month-on-month and 11.78 percent on the year at 383,764 tons.

Capacity utilization rates have since increased. Large producers with capacity above 200,000 tons saw utilization rates rise to around 70 percent in May, while for mid-sized players with capacity of 100,000 to 200,000 tons they climbed to 50 percent, and those with capacity less than 100,000 tons clocked about 40 percent, Myyouse analyst Lei Xiaofang told Interfax.

With zinc prices under pressure and the summer maintenance period approaching however, it remains uncertain whether increased output will be sustainable in the second half. Prices are currently hovering between RMB 14,500 ($2,294.3) and RMB 15,500 ($2,452.53) per ton, down from a RMB 18,000 ($2,848.1) peak at the end of July last year, while demand remains soft among major downstream users such as the steel, real estate and home appliance industries.

Page 4 of 28 © 2012 Factiva, Inc. All rights reserved.

CM000016.JPGWeak nickel prices prompted Indonesia to set lower-than-expected base prices for its recently-introduced nickel ore export tariff, giving Chinese smelters a temporary breather before the impact of the restrictions filters through to the market.

China 's main supplier of nickel ingredients on Monday set base prices for 14 different ores which are subject to a 20 percent export tax introduced on May 6. Both foreign and domestic firms without processing facilities in the southeast Asian country moreover are prohibited from exporting the ores altogether under the new rules, Interfax previously reported.

The base prices will be adjusted every three months, and for nickel range from $15.80 to $41.52 for four different types of ore grading less than two percent, equating to levies of $3.16 to $8.30 per wet ton.

The tariffs fall far below market expectations – based on the current FOB price – of $8 to $12 per ton, Wang Haoyang, an analyst with Shanghai Metals Market told Interfax.

“Cost increases for Chinese smelters will be less drastic than previously thought,” Wang said, adding that Indonesia’s nickel shipments to China in June could nonetheless be affected if export quotas are introduced.

MetalChina analyst Fan Runze on the other hand sees a marked decline in Indonesian nickel ore imports in June, while the price outlook for the metal remains cloudy amid soft demand in China . “Many large factories are stopping production making prices hard to predict,” said Fan.

The tax is hoped to support prices in the mid-term, though large ore stockpiles in China will limit the short-term impact, China International Capital Corp. said in a research note May 10.

Stockpiles at seven major ports stood at 13.31 million tons on June 1, up by 1.33 million tons since the beginning of the second quarter (Q2), show Umetal figures. China ’s smelters stepped up purchases in response to Indonesia’s restrictions and nickel ore imports have increased for three consecutive months since February, show customs data.

The rise in imports masks a reduced appetite for commodities as growth slows in the world’s second largest economy – China ’s official Purchasing Mangers Index (PMI), a key gauge of manufacturing activity, dropped further-than-expected to 50.4 in May, down from 53.3 the previous month.

Decreasing demand for nickel in China along with the global economic uncertainties have seen the metal notch up the worst performance of any base metals on the London Metals Exchange (LME) since February, and the price has lost about 30 percent in the past few months. LME benchmark nickel contracts fell to $15,980 per ton on June 6, the lowest since December 2009.

Adding to the gloomy macroeconomic outlook, a supply surplus could put further pressure on nickel – the International Nickel Study Group in April predicted a 50,000 ton oversupply in 2012, while CITI Bank has reduced its price forecast by 0.4 percent to $19,430 per ton.

Base prices for Indonesia nickel ore export tax, June – Aug 2012

Ore content (%) Base price (USD/wet ton) Tax (USD/wet ton)

<1.5

15.8

3.16

1.5-1.8

25.14

5.03

1.8-2.0

32.69

6.54

2

41.52

8.30

Source: Indonesia Trade Ministry

CM000026.JPGLeading Chinese gold miner Zijin Mining Group has reached an agreement with Tajikistan on joint copper production in the Sogdiisk region, the office of the Tajik president said in a press release.

The accord comes during a state visit to China by President Emomali Rahmon, though detailed terms have yet to be announced, Interfax reported from Dushanbe Tuesday.

The Sogdiisk region in north Tajikistan has deposits of sulfide ore, the copper content of which is currently unknown. The central Asian country has yet to exploit any of its copper resources.

Zijin Mining currently owns a 75 percent stake in Zeravshan Gold Co., a joint venture (JV) with the Tajik government which in 2011 accounted for 59.3 percent of the country’s gold output.

Page 5 of 28 © 2012 Factiva, Inc. All rights reserved.

Zijin Mining has so far invested $200 million in Zeravshan and introduced new technology that help boost gold production, according to the press release. A further investment of $100 million should enable the JV to increase annual production to five tons by 2016.

Zeravshan paid $18 million in taxes in 2011.

Gold production in Tajikistan increased 9.3 percent in 2011 to 2,240.1 kilograms. Thirty-one gold deposits have been identified in the country with overall reserves estimated at 675 tons.

Hunan Corun New Energy Co. Ltd. is to acquire Hunan-based Yiyang Hongyuan Rare Earth Co. Ltd. in a bid to extend its industry chain and improve profitability, the manufacturer of advanced batteries announced Thursday.

The acquisition is intended to ensure supplies of input materials, said a Corun securities representative. Rare earths are used in negative films for nickel-metal hydride (Ni-MH) batteries, Corun’s core product.

The deal is worth a total consideration of RMB 1.22 billion ($191.72 million) and comes after the battery maker aborted a previous takeover attempt in January citing difficulties in appraising Hongyuan’s value due to volatile rare earths prices. Corun shares lost 40 percent in the five trading days that followed.

Corun will purchase all Hongyuan shares from the owner Cao Youmin via cash and a stock swap. The battery producer will issue 48.12 million shares to Cao at RMB 20.28 ($3.20) per share for an 80 percent stake, and plans a RMB 325 million ($51.45 million) private placement to fund the purchase the remaining 20 percent interest for RMB 244 million ($38.63 million).

Cao will become Corun’s second-largest shareholder with a 12.7 percent stake which he cannot sell for 36 months under the agreement.

Corun shares were suspended from trading on the Shanghai Stock Exchange on March 27 to make way for the deal. Its share price hit the daily limit for two days running after trading resumed on Thursday, and stood at RMB 25.21 ($3.96) at the end of morning trading on Friday.

Based in Yiyang city in central China ’s Hunan Province, Hongyuan is involved in rare earths separation, smelting, deep processing and R&D. It was the only firm in Hunan to be granted a rare earth export quota in 2011 but has yet to obtain one this year.

The takeover will not impact on Hongyuan’s export business, Xie Zhaohui, manager of the firm’s international trading department told Interfax.

China ’s three leading ferromolybdenum producers have reduced prices for the material used in high-strength low-alloy steel (HSLA), potentially ushering in an industry consolidation as smaller players are forced out of the business amid low profit margins.

Jinduicheng Molybdenum Co. Ltd., China Molybdenum Co. Ltd. and Jinzhou New China Dragon Moly Co. Ltd. cut prices by 1.65 percent or RMB 2000 per ton to between RMB 119,000 ($18,719.77) and RMB 123,000 ($19,349.01) per ton, state-run newspaper China Nonferrous Metals News reported on its website Wednesday.

Despite the price drop, there is limited downside for molybdenum concentrate, the main ingredient

in ferromolybdenum, as prices are already depressed, and the industry is expected to undergo a consolidation

as minor players struggle with shrinking profit margins, Antaike Information analyst Peng Ruqing told Interfax.

“The market mechanism will help clean up those minor producers unable to survive on tighter margins, which is good for the industry,” Peng said.

The price cut moreover is in line with declines in global ferromolybdenum prices due to weak demand amid a slowing Chinese economy and concerns over the European debt crisis, Peng added.

China ’s official Purchasing Managers Index (PMI) saw the sharpest drop in 28 months in May, falling to 50.4 from 53.3 in April, renewing fears over the extent of its slowdown.

Peng nonetheless remains upbeat: “I think the prices are already close to bottoming out, and I don’t see

a significant decline in the short-term.”

Page 6 of 28 © 2012 Factiva, Inc. All rights reserved.

China Molybdenum is China ’s largest molybdenum producer according to Antaike Information. Listed on the Hong Kong Stock Exchange and based in Henan Province, the firm says it was the fourth largest producer globally in 2011 and accounted for about 6.7 percent of total output in 2010.

Shaanxi Province-based Jinduicheng Molybdenum is the Shanghai Stock Exchange-listed unit of state-owned Jinduicheng Molybdenum Group and also claims to be the world’s fourth largest molybdenum producer on its website. Dragon Moly meanwhile is based in the northeastern province of Liaoning.

Ferromolybdenum is the main source of molybdenum alloying for HSLA, an alloy steel which offers better mechanical properties and greater resistance to corrosion than carbon steel.

China accounts for about 34 percent of global output of molybdenum, which is mixed with iron oxide and aluminum to produce ferromolybdenum. The country produced 85,000 tons of the transition metal last year while consuming about 31 percent of global supplies, according to Research and Markets.

Preliminary exploration work conducted by subsidiaries of Fujian Metallurgy (Holding) Co. Ltd. (FMHC) has uncovered the world’s largest tungsten deposit in central China ’s Jiangxi Province, the Ministry of Land and Resources (MOLR) said in a statement on its website Tuesday.

The Datanghu deposit in Wuning County, Jiujiang City, contains proven tungsten reserves of 1.06 million tons, according to a survey conducted by Xiamen Sanhong Tungsten Molybdenum Co. Ltd. (Sanhong Tungsten),

a mineral exploration firm, and Xiamen Tungsten Co. Ltd. (Xiamen Tungsten), the world’s largest tungsten smelter. State-owned FMHC controls the two companies with stakes of 34.51 percent and 33.6 percent, respectively.

The mining rights for Datanghu however lie in the hands of Jiangxi Jutong Co. Ltd., in which private equity fund Beijing Judian Investment Co. Ltd. holds a 53 percent stake while Sanhong Tungsten holds a 30 percent share.

The involvement of diverse stakeholders could pose difficulties when it comes to divvying out the reserves, while the ore grades at Datanghu also remain uncertain, said Mysteel analyst Chen Cheng.

The mine will take at least five to six years to develop, and in the process the local government may seek to introduce local players into the project, the analyst added.

The results of the survey come after Xiamen Tungsten and Sanhong Tungsten in May last year signed agreements with provincial authorities in Jiangxi to explore tungsten resources and develop the local deep processing industry. The deals included a combined RMB 2 billion ($315.96 million) investment in tungsten exploration in northern Jiangxi’s Jiujiang City.

Datanghu will help Xiamen Tungsten increase self-sufficiency in tungsten concentrate – the firm produces 6,500 tons a year, enough for about 30 percent of its needs. The remainder is sourced through long-term supply contracts.

China is the largest tungsten producer in the world, followed by Russia and Vietnam, with resources concentrated

in Jiangxi, Hunan and Inner Mongolia. The country produced 121,900 tons of tungsten concentrate in 2011.

The majority of Jiangxi’s tungsten mines are in the south of the province, and Datanghu is the first major deposit to be found in the north. Dajishan tungsten mine in southern Jiangxi was previously thought to be China 's largest tungsten mine.

FMHC is a diversified metals holdings company owned by the Fujian branch of the State-owned Assets Supervision and Administration Commission (SASAC). The firm controls 18 companies with interests including steel products, aluminum products, tungsten, manganese, gold and iron ore mining.

State-owned Shandong Gold Group, a leading gold producer in China , has agreed to acquire majority stakes

in

two Shandong-based miners controlled by billionaire Zhang Ankang, winning out over Zhongjin Gold Co. Ltd.

in

the increasing competition for gold resources between Chinese miners amid burgeoning domestic demand for

the precious metal.

The company has signed a contract to acquire a 98.5 percent stake in each of Shandong Shengda Mining Co. Ltd. and Shandong Tiancheng Mining Co. Ltd. at a combined price of RMB 3.8 billion ($597 million), the group’s listed unit, Shandong Gold Mining Co. Ltd., said in a statement June 1.

Page 7 of 28 © 2012 Factiva, Inc. All rights reserved.

The deal took place behind closed doors after the target companies twice delayed an auction in which the principal rival would have been Zhongjin, the listed unit of China ’s largest gold producer, state-owned China National Gold Group Co. Ltd.

Initially postponed from April 14 to April 25 while Shengda and Tiancheng underwent preparations, the auction was then put on hold for a second time for unspecified reasons until Shandong Gold revealed it had already reached a deal last Friday.

The acquisition could boost Shandong Gold’s total gold reserves by as much as 130 tons, according to the statement, and brings with it Shengda’s 55-percent stake in prospecting China ’s largest monomer gold reserve. The Laizhou mine in Shandong contains gold reserves of 105 tons, worth some RMB 2.6 billion ($408.86 million) at current prices.

China ’s gold producers are vying for domestic and overseas resources as the nation remained the world’s largest market for gold jewelry for a third consecutive season in the first quarter (Q1), while gold demand from investment saw a double-digit year-on-year increase during the period, according to the World Gold Council’s quarterly report.

Shares in Shandong Gold’s Shanghai Stock Exchange-listed unit closed up 5.74 percent at RMB 36.31 ($5.71) on Monday, while Zhongjin shares edged up 0.78 percent to RMB 23.26 ($3.66) against a 2.7-percent fall in the Shanghai Composite Index.

Zhang Ankang holds a 51 percent stake in Shengda as well as a controlling stake in Tiancheng, state-run International Finance News reported. The businessman is a delegate for Shandong on China ’s political advisory body, the Chinese People's Political Consultative Conference (CPPCC), and was worth RMB 3.59 billion ($564.53 million) in 2010, according to local media reports.

Zijin Mining Group Co. Ltd. has offered AUD 180.3 million ($174.78 million) for all outstanding shares in Australia’s Norton Gold Fields Ltd. in a deal set to boost the Chinese miner’s gold output by 14 percent.

Zijin’s wholly-owned subsidiary Jinyu (HK) International Mining Co. Ltd. tendered an offer of AUD 0.25 ($0.24) per share on June 1 – a 14 percent premium on Norton’s closing share price on May 30. Jinyu furthermore agreed pay a special dividend of AUD 0.02 ($0.019) per share to the shareholders.

Zijin currently owns a 16.98 percent stake in Norton through another of its wholly-owned units, Luminous Gold Ltd. The takeover awaits the approval of Chinese regulators as well asAustralia’s Foreign Investment Review Board. Since Norton is a relatively small player, opposition on the Australian side is unlikely, said Antaike Information analyst Shi Heqing.

The takeover will increase Zijin’s gold resources by about 13 percent and add to the group’s growing portfolio of overseas interests as it tries to secure gold supplies to satisfy burgeoning demand for the yellow metal in China , said Shi. The firm expects to put a gold mine in Kyrgyzstan into production in 2013, and also owns precious metals assets in Russia, Canada and Mongolia.

With gold prices relatively low, listed miners are currently at attractive valuations for takeovers, the analyst added. Gold closed at $1,609.07 per ounce on June 1, down 15.33 percent from a peak of $1,900.3 per ounce in August last year.

Shenyin & Wanguo Futures analyst Cao Bin said prices are likely to hover around $1,600 per ounce in the near-term amid uncertainty over the chances of a third round of quantitative easing in theU.S., which would boost the market.

Norton is a mid-tier gold producer listed on the Australian Stock Exchange. The firm’s main shareholders are HSBC Custody Nominees (Australia) Ltd. with 17.43 percent, Citicorp Nominees Pty Ltd. with 16.04 percent, and Gold Max Asia Investments Ltd. with 10.90 percent.

Norton’s annual production exceeds 150,000 ounces and its flagship Paddington mine nearKalgoorliesome 600 kilometers northeast ofPerthhas defined mineral resources of 5.96 million ounces, including more than one million ounces of proven and probable ore reserves.

Zijin is dual-listed on the Shanghai and Hong Kong stock exchanges. The firm’s shares inShanghaisaw a muted reaction to the announcement, edging up 0.97 percent from close on May 30 to end at RMB 4.15 ($0.66) on Monday. While mainly focused on gold, the group has interests in various other commodities, including copper, zinc, lead, tungsten and iron ore. Page 8 of 28 © 2012 Factiva, Inc. All rights reserved.

Thermal coal stockpiles in central China ’s Hunan Province have reached a record high of 6.6 million tons, sufficient for 45 days of thermal power production, according to statistics released by the Hunan arm of the State Electricity Regulatory Commission (SERC) on Thursday.

The record breaking reserves are the result of thermal power plants taking advantage of low coal prices, coal industry expert Li Zhaolin told Interfax.

Domestic coal prices fell to their lowest level of the year this week amid slowing economic growth and weakening demand for the commodity, industry portal cqcoal.com said Thursday.Hunan is hopeful that the buildup of coal stockpiles and weather reports indicating sufficient rainfall for hydropower production this summer will help the province avoid a second year of power shortages and rationing policies, said SERC.

Up to one-third of power demand went unmet last summer as the province wrestled with insufficient operational capacity. Data from local grid operator Hunan Electric Power Corp. (HEPC) shows that daily power demand topped 280 gigawatt hours (GWh) in the summer of 2011 while supplies only reached 200 GWh.

Hunan can be seen as a bellwether for China ’s power supply situation this year, industry expert Sun Xiangming told Interfax June 7. Reduced strain on power grids due to slowing manufacturing activity should benefit power supplies in Hunan as well as other provinces, said Sun.

HEPC forecast this week that summer power supplies should be sufficient to fuel the province without the need reintroduce rationing policies, Interfax reported yesterday. China ’s power consumption growth slowed

to a 16-month low of 3.7 percent year-on-year in April, the National Energy Administration (NEA) said May

14. The NEA is scheduled to release China ’s May power consumption figures next week.

Coal prices at Qinhuangdao Port, China ’s largest coal transshipment port, fell for the seventh straight week, according to data released by the China Coal Transportation and Development Association (CCTDA) on June 7.

The CCTDA data also shows that coal inventories rocketed 12 percent, or 960,000 tons, from May 30, reaching 8.69 million tons on June 6.

Record setting coal inventories have led to sluggish demand, Li Ting, an expert with the Distribution Productivity Promotion Center of China Commerce (DPPC) told Interfax on Friday.

Thermal power providers currently hold healthy stockpiles, which has led to weakened sales and falling prices, said Li. Furthermore, domestic producers are cutting prices to keep pace with falling international coal prices.

Li added that domestic coal prices are expected to continue their slide for the next few months before stabilizing.

Coal Prices at Qinhuangdao Port, May 31 – June 7, 2012

Coal type

Heat value (Kcal/KG) FOB price May 31 (RMB, ton) FOB price

June 7 (RMB, ton) Datong premium blend 5,800

810-820 ($127.15 – $128.72) 805-815

($126.31 - $127.88) Shanxi premium blend 5,500 ($117.68 - $119.25)

760-770($119.3 – $120.87)

750-760

Shanxi blend ($101.99 – $103.56)

5,000

660-670 ($103.6 - $105.17) 650-660

General blend ($84.73 – $86.30)

4,500

555-565 ($87.12- $88.69)

540-550

Source: CCTDA

Spot prices for domestically produced iron ore, June 8

Place of production

Grade (%) Offer price (RMB/ton) Offer price (USD/ton)

Liaoning (Beipiao)

66 (wet)

725

114.72

Liaoning (Gongchangling) 65 (wet) 740

117.09

Liaoning (Fushun)

66

970

153.48

Jilin (Tonghua)

66

910

143.99

Hebei (Tangshan)

66

1085

171.68

Hebei (Hanxing)

66

1045

165.35

Shandong (Luzhong)

65

1120

177.22

Page 9 of 28 © 2012 Factiva, Inc. All rights reserved.

Shanxi (Daixian)

64

790

125

Anhui (Fanchang)

64

1120

177.22

Jiangsu (Zhenjiang)

65

1180

186.71

Guangdong (Huaiji)

65 (wet)

760

120.25

Hubei (Daye)

63

1000

158.23

Source: Mysteel

Note: Pre-tax prices are shown for iron ore produced in Beipiao, Gongchangling, Daixian, Huaiji and Hanxing

Iron ore prices at Jingtang Port, June 8

Type

ton)

Grade (%) Delivery price (RMB/wet ton) Delivery price (USD/wet

Australian PB fine 61.5

950-960

150.32-151.9

Indian fine

63.5

995-1005

157.44-159.02

Indian fine

63

975-985

154.27-155.85

Indian fine

62

940-950

148.73-150.32

Indian fine

61

890-900

140.82-142.41

Indian fine

60

860-870

136.08-137.66

Indian fine

59

830-840

131.33-132.91

Indian fine

58

800-810

126.58-128.16

Indian fine

56

740-750

117.09-118.67

Indian fine

54

680-690

107.59-109.18

Iron ore prices in Qingdao Port, Shandong Province, June 8

Type

Grade (%) Delivery price (RMB/wet ton) Delivery price (USD/wet

ton)

Indian fine

63.5

980-990

155.06-156.65

Indian fine

63

960-970

151.9-153.48

Indian fine

62

930-940

147.15-148.73

Indian fine

61

890-900

140.82-142.41

Indian fine

60

860-870

136.08-137.66

Indian fine

59

820-830

129.75-131.33

Indian fine

58

780-790

123.42-125

Australian PB fine 61.5

950-960

150.32-151.9

Australian PB lump 62.5

1020-1030

161.39-162.97

Brazilian fine

63

930-940

147.15-148.73

Iron ore prices in Caofeidian Port, Hebei Province, June 8

Type

Grade (%) Delivery price (RMB/wet ton) Delivery price (USD/wet

ton)

Indian fine

63.5

995-1005

157.44-159.02

Indian fine

63

975-985

154.27-155.85

Australian PB lump 62.5

1040-1050

164.56-166.14

Australian PB fine 61.5

950-960

150.32-151.9

Brazilian fine

63

935-945

147.94-149.53

Iron ore prices in Tianjin Port, June 8

Type

ton)

Grade (%) Delivery price (RMB/wet ton) Delivery price (USD/wet

Australian PB fine 61.5

960-970

151.9-153.48

Australian PB lump 62.5

1040-1050

164.56-166.14

Brazilian fine

63

940-950

148.73-150.32

Indian fine

63.5

1005-1015

159.02-160.6

Indian fine

63

985-995

155.85-157.44

Indian fine

62

955-965

151.11-152.69

Indian fine

61

915-925

144.78-146.36

Indian fine

60

885-895

140.03-141.61

Indian fine

59

845-855

133.7-135.28

Page 10 of 28 © 2012 Factiva, Inc. All rights reserved.

Indian fine

58

815-825

128.96-130.54

Indian fine

56

755-765

119.46-121.04

Indian fine

54

690-700

109.18-110.76

Indian fine

52

650-660

102.85-104.43

Iron ore prices in Beilun Port, Zhejiang Province, June 8

Type

Brazilian fine 63

Grade (%) Delivery price (RMB/wet ton) Delivery price (USD/wet ton)

930-940

147.15-148.73

Iron ore prices in Zhanjiang Port, Guangdong Province, June 8

Type

Grade (%) Delivery price

(RMB/wet ton) Delivery price (USD/wet

ton)

Indian fine

63.5

980-990

155.06-156.65

Indian fine

63

960-970

151.9-153.48

Indian fine

62

920-930

145.57-147.15

Indian fine

61

880-890

139.24-140.82

Indian fine

60

850-860

134.49-136.08

Australian PB fine 61.5

950-960

150.32-151.9

Australian PB lump 62.5

1020-1030

161.39-162.97

Brazilian fine

63

930-940

147.15-148.73

Iron ore prices in Rizhao Port, Shandong Province, June 8

Type

Grade (%) Delivery price

(RMB/wet ton) Delivery price (USD/wet

ton)

Indian fine

63.5

980-990

155.06-156.65

Indian fine

63

960-970

151.9-153.48

Indian fine

62

930-940

147.15-148.73

Indian fine

61

890-900

140.82-142.41

Indian fine

60

860-870

136.08-137.66

Indian fine

59

820-830

129.75-131.33

Indian fine

58

780-790

123.42-125

Indian fine

54

680-690

107.59-109.18

Indian fine

52

620-630

98.1-99.68

Australian PB fine 61.5

950-960

150.32-151.9

Australian PB lump 62.5

1020-1030

161.39-162.97

Brazilian fine

63

930-940

147.15-148.73

Iron ore prices in Lianyungang Port, Jiangsu Province, June 8

Type

ton)

Grade (%) Delivery price (RMB/wet ton) Delivery price (USD/wet

Indian fine

63.5

990-1000

156.65-158.23

Indian fine

63

970-980

153.48-155.06

Indian fine

62

935-945

147.94-149.53

Indian fine

61

895-905

141.61-143.2

Indian fine

60

865-875

136.87-138.45

Indian fine

59

825-835

130.54-132.12

Indian fine

58

795-805

125.79-127.37

Indian fine

54

695-705

109.97-111.55

Indian fine

52

630-640

99.68-101.27

Australian PB fine 61.5

950-960

150.32-151.9

Australian PB lump 62.5

1025-1035

162.18-163.77

Brazilian fine

63

930-940

147.15-148.73

Source: Mysteel

Note: Delivery price includes CIF and average port charges Indian ore delivery price includes export taxes (30 percent per ton for lump and fine)

CIOPI, May 25 – June 1

Page 11 of 28 © 2012 Factiva, Inc. All rights reserved.

Index

May 25 June 1 Change (%)

CIOPI

479.53 460.76 -3.91

Domestic index 361.47 355.37 -1.69

Import index

543.95 518.26 -4.72

CIOPI price equivalent, May 25 – June 1

Products

Domestic iron ore (RMB/ton) 930.13 914.42 -1.69

Imported iron ore

May 25 June 1 Change (%)

USD/ton 146.92 139.98 -4.72 RMB/ton 1087.43 1036.85 -4.65

Source: China Iron & Steel Association (CISA)

Note: CIOPI was originally released every Monday and was first published on Oct. 10, 2011. The index is now usually released on Tuesdays and shows data from the week ending the previous Friday.

The index uses a base price from April 1994 set at 100 points

Import prices are delivery prices, and include CIF (cost, insurance and freight) but exclude taxes. RMB prices include China 's 17 percent value-added tax)

Import prices are for dry shipments of fines grading 62 percent, and domestic prices are for dry concentrate grading 62 percent

Laterite ore prices at Tianjin Port, June 8, 2012

Type

Grade (%) Delivery price (RMB/wet ton) Delivery price

(USD/wet ton) Philippine laterite ore 0.9-1.1

360-370

56.97-58.56

Indonesian laterite ore 1.8-1.9

500-600

79.13-94.95

Philippine laterite ore 1.4-1.6

290-390

45.89-61.72

Laterite ore prices at Lianyungang Port, Jiangsu Province, June 8, 2012

Type

Grade (%) Delivery price (RMB/wet ton) Delivery price

(USD/wet ton) Philippine laterite ore 0.9-1.1

360-370

56.97-58.56

Philippine laterite ore 1.4-1.6

290-390

45.89-61.72

Indonesian laterite ore 1.8-1.9

500-600

79.13-94.95

Indonesian laterite ore 1.9-2.0

600-700

94.95-110.78

Laterite ore prices in Rizhao Port, Shandong Province, June 8, 2012

Type

Grade (%) Delivery price (RMB/wet ton) Delivery price

(USD/wet ton) Philippine laterite ore 1.4-1.6

290-390

45.89-61.72

Indonesian laterite ore 1.8-1.9

500-600

79.13-94.95

Philippine laterite ore 0.9-1.1

360-370

56.97-58.56

Laterite ore prices in Lanshan Port, Shandong Province, June 8, 2012

Type

Grade (%) Delivery price (RMB/wet ton) Delivery price

(USD/wet ton) Philippine laterite ore 1.9-2.0

600-700

94.95-110.78

Philippine laterite ore 1.8-1.9

500-600

79.13-94.95

Philippine laterite ore 1.0

360-370

56.97-58.56

Source: Umetal

Note: Delivery price consists of CIF price, value-added tax and average charges at the port.

Alumina spot market roundup, June 8

Page 12 of 28 © 2012 Factiva, Inc. All rights reserved.

Product (RMB/ton) Change (RMB/ton) Price

Price

(USD/ton) Change (USD/ton) Change (%) Domestically-produced alumina Chalco

2900

0.00

458.95

0.00

0.00

Zouping Gaoxin Aluminum & Power 2700-2750

0.00

427.3-435.21

0.00

0.00

Other producers (average)

2680-2730

0.00

424.13-432.04

0.00

0.00

Imported alumina Qingdao Port

2700-2720

-15.00

427.3-430.46

-2.37

-0.55

Lianyungang Port

2700-2720

-15.00

427.3-430.46

-2.37

-0.55

Source: Chinaccm

Note: Price ranges in the table show the highest and lowest prices for a given item recorded on June 8.

Change is calculated on a weekly basis using average prices on June 1 and June 8

Imported alumina prices are delivery prices, and include the CIF (cost, insurance and freight) price, necessary taxes and port charges

Aluminum Corp. of China Co. Ltd. (Chalco) is China 's largest alumina producer and sells only a small proportion of its output on the spot market

Zouping Gaoxin Aluminum & Power Co. Ltd., formerly Weiqiao Aluminum, is a major producer known for high production costs due to its heavy dependence on imported bauxite

Base metals spot prices in Shanghai, June 8

Product

(RMB/ton) Change (RMB/ton) Price (USD/ton) Change (USD/ton) Change (%)

Price

1# Electrolytic copper

54300-54600

-1,025

8593.4-8640.88

-162.21

-1.85

Imported copper

54250-54450

-1,065

8585.49-8617.14

-168.54

-1.92

A00 Aluminum ingot Al ≥ 99.70 15890-15930

-40

2514.72-2521.05

-6.33

-0.25

1# Lead ingot Pb ≥ 99.994

15000-15150

-25

2373.87-2397.61

-3.96

-0.17

0# Zinc ingot Zn ≥ 99.995

14650-14750

-50

2318.48-2334.3

-7.91

-0.34

1# Zinc ingot Zn ≥ 99.99

14600-14700

-50

2310.57-2326.39

-7.91

-0.34

1# Tin ingot Sn ≥ 99.90

151500-152500

-2,250

23976.07-24134.33

-356.08

-1.46

1# Nickel ingot Ni ≥ 99.90

118600-122100

-2,350

18769.39-19323.29

-371.91

-1.92

Minor metal spot prices in Shanghai, June 8

Product (RMB/ton) Change (RMB/ton) Price

Page 13 of 28 © 2012 Factiva, Inc. All rights reserved.

Price

(USD/ton) Change (USD/ton) Change (%) 1# Magnesium ingot ≥ 99.95%

17650-18050

50

2793.25-2856.56

7.91

0.28

0# Antimony ingot ≥ 99.91%

 

77000-78500

-2,750

12185.86-12423.24 -435.21

-3.42

1# Electrolytic manganese ≥ 99.7%

 

15300-15400

0

2421.35-2437.17

0.00

0.00

0# Cadmium ingot, bar ≥ 99.995% (domestically-produced) 17000-18000

-500

 

2690.38-2848.64

-79.13

-2.78

Cobalt ≥ 99.8%

225000-235000

-5,000

35608.03-37190.61 -791.29

-2.13

1# Titanium sponge ≥ 97-98% (kg)

 

64-67

-4

10.13-10.6

-0.63

-5.76

Indium ≥ 99.99% (kg)

3300-3350

-50

522.25-530.16

-7.91

-1.48

Vanadium ≥ 99.5% (kg)

2400-2600

0

379.82-411.47

0.00

0.00

1# Molybdenum ≥ 99.95%

260-280

0

41.15-44.31

0.00

0.00

Source: Shanghai Yangtze River Nonferrous Metals Market

Note: Price ranges in the tables represent the highest and lowest prices for a given item recorded on June 8

Change is calculated on a weekly basis, using the difference between average prices on June 1 and June 8

Spot prices for domestically produced metallurgical coke, June 8

Place of production (place of sale) Type (%)

Price (RMB/ton) Price (USD/ton) Weekly change

Shanghai (Shanghai)

A13.5S0.8 1850

292.72

0

Anhui (Huaibei)

A13.5S0.6 1950

308.54

0

Shandong (Weifang)

A13.5S0.8 1700

268.99

-2.86

Hebei (Handan)

A13S0.7

1730

273.73

0

Shanxi (Tangshan)

A13.5S0.7 1805

285.6

0

Shanxi (Hejin)

A13S0.7

1650

261.08

0

Heilongjiang (Qitaihe)

A13.5S0.4 1630

257.91

0

Henan (Pingdingshan)

A13.5S0.8 1830

289.56

0

Shanxi (Changye)

A13S0.7

1600

253.16

-1.23

Shanxi (Taiyuan)

A12.5S0.65 1850

292.72

0

Inner Mongolia (Wuhai)

A13.5S0.8 1730

273.73

0

Guizhou (Liupanshui)

A13.5S0.75 2030

321.2

0

Qinghai (Xining)

A12S0.75

N/A

N/A

N/A

Yunnan (Qujing)

A15S0.8

2100

332.28

-2.33

Source: Mysteel

Note: Prices given in the table are ex-works prices plus tax, excluding sales prices in Handan and Tangshan, which include tax and transportation fees

Weekly change was calculated with figures released by Mysteel on June 8

Scrap metals spot prices in Shanghai, June 8, 2012

Product

Price

(RMB/ton) Price

Page 14 of 28 © 2012 Factiva, Inc. All rights reserved.

(USD/ton) Change (RMB/ton) Change (USD/ton) Change (%)

Bare bright (millberry) copper wire Cu>99% 49100-49400

7770.46-7817.94 -1,000

-158.26

-1.99

Brass scrap

34200-34500

5412.42-5459.9

-500

-79.13

-1.43

Mixed casting aluminum scrap (Fe<2%)

13100-13300

2073.18-2104.83 0

0.00

0.00

Shred zinc (Zn 84%-86%)

11200-11400

1772.49-1804.14 -100

-15.83

-0.88

Pure nickel scrap -55,950 -8,854.53 -45.49

12100-122000

1914.92-19307.46

Scrap steel

2380-2430

376.65-384.57

-100

-15.83

-3.99

Source: www.recyclechina.com

Note: Weekly change is calculated using prices from June 1 and June 8

Benchmark contracts for aluminum, copper, zinc, lead and wire on the Shanghai Futures Exchange saw declines in the week ending June 8, while gold, silver and rebar gained.

SHFE aluminum contracts, week ending June 8

Contract Open

(RMB) High

(RMB) Low

(RMB) Close (RMB) Change (RMB) Open interest Open interest change Weekend settling price Volume (lot) Turnover (mln RMB)

al1206

15,880

15,965

15,860

15,905

-55

11,570

-4,810

15,900

7,140

568.25

al1207

15,930

16,010

15,840

15,870

-80

32,756

-4,552

15,870

10,010

795.77

al1208

15,825

15,955

15,825

15,875

-55

69,872

-7,944

15,870

20,592

1,636.02

al1209

15,850

15,960

15,800

15,865

-70

101,780

1,506

15,865

54,584

4,336.30

al1210

15,945

15,975

15,820

15,880

-70

46,074

8,360

15,865

28,594

2,272.85

al1211

15,900

16,010

15,865

15,885

-85

10,790

5,992

15,875

8,424

669.95

al1212

15,950

15,995

15,870

15,885

-85

2,666

678

15,880

1,588

126.36

al1301

16,170

16,170

15,890

15,895

-125

604

242

15,905

500

39.81

al1302

16,150

16,150

15,885

15,930

-70

238

8

15,930

68

5.43

al1303

15,970

16,010

15,940

15,970

-185

102

60

15,990

78

6.24

al1304

15,905

16,080

15,905

15,980

-145

16

6

15,980

10

0.80

al1305

16,130

16,130

15,910

15,995

-110

20

14

15,995

76

6.09

Al Total

16,170

15,800

276,488

-440

131,664

10,463.86

Note: Change is calculated using close prices from June 1 and June 8

Page 15 of 28 © 2012 Factiva, Inc. All rights reserved.

1

lot = 5 tons.

The renminbi traded at 6.3276 against the U.S. dollar on June 4.

SHFE copper contracts, week ending June 8

Contract Open (RMB) High (RMB) Low (RMB) Close (RMB) Change (RMB) Open interest Open interest change Weekend settling price Volume (lot) Turnover (mln RMB)

cu1206

53,890

54,900

53,430

53,960

-1,140

16,910

-5,560

54,110

33,790

9,149.23

cu1207

54,040

54,710

53,050

53,680

-1,200

43,952

-2,600

53,810

45,780

12,339.10

cu1208

53,480

54,500

52,700

53,330

-1,280

81,542

-11,908

53,570

105,492

28,306.37

cu1209

53,120

54,260

52,330

53,030

-1,300

291,074

-21,528

53,270

2,725,440

727,616.45

cu1210

53,030

54,080

52,210

52,800

-1,430

135,182

52,098

53,070

620,768

165,278.92

cu1211

53,100

54,030

52,180

52,740

-1,430

24,688

8,696

53,010

49,930

13,269.08

cu1212

53,230

54,010

52,170

52,750

-1,460

8,828

2,556

53,030

12,992

3,450.72

cu1301

52,900

54,050

52,100

52,710

-1,560

4,316

1,356

53,020

4,032

1,069.39

cu1302

53,260

54,210

52,290

52,690

-1,610

1,588

340

53,070

1,012

268.66

cu1303

53,400

54,100

52,070

52,810

-1,510

998

210

53,120

932

247.36

cu1304

53,360

54,100

52,290

52,910

-1,400

868

314

53,130

728

193.68

cu1305

53,480

54,120

52,090

52,920

-1,490

556

174

53,100

588

156.50

Cu Total

54,900

52,070

610,502

24,148

3,601,484

961,345.47

Note: Change is calculated using close prices from June 1 and June 8

1 lot = 5 tons.

The renminbi traded at 6.3276 against the U.S. dollar on June 4.

SHFE zinc contracts, week ending June 8

Contract Open (RMB) High (RMB) Low (RMB) Close (RMB) Change

(RMB) Open interest Open interest change Weekend settling price Volume (lot) Turnover (mln RMB)

zn1206

14,535

14,760

14,450

14,650

-75

9,790

-3,150

14,665

7,570

553.70

zn1207

14,665

14,850

14,410

14,670

-65

36,316

-9,968

14,695

30,198

2,214.21

zn1208

14,650

14,860

14,465

14,685

-70

97,864

-15,084

14,715

69,060

5,063.23

zn1209

14,665

14,880

14,470

14,710

-60

170,578

-5,372

14,730

560,168

41,157.28

Page 16 of 28 © 2012 Factiva, Inc. All rights reserved.

zn1210

14,715

14,910

14,520

14,745

-65

59,738

26,874

14,765

109,326

8,063.59

zn1211

14,760

14,940

14,560

14,780

-95

6,170

1,870

14,790

4,722

348.65

zn1212

14,775

14,970

14,600

14,815

-85

3,854

396

14,835

1,508

111.50

zn1301

14,785

15,015

14,665

14,810

-115

446

48

14,885

302

22.41

zn1302

14,810

15,040

14,700

14,865

-100

222

-2

14,915

148

11.02

zn1303

14,780

15,100

14,665

14,950

-50

328

46

14,970

250

18.68

zn1304

14,855

15,170

14,745

15,060

-15

148

-2

15,020

90

6.75

zn1305

14,900

15,195

14,830

15,080

-20

56

8

15,080

36

2.71

Zn Total

15,195

14,410

385,510

-4,336

783,378

57,573.73

Note: Change is calculated using close prices from June 1 and June 8

1 lot = 5 tons.

The renminbi traded at 6.3276 against the U.S. dollar on June 4.

Rebar contracts on SHFE, week ending June 8

Contract Open

(RMB) High

(RMB) Low (RMB) Close (RMB) Change (RMB) Open interest Open interest change Weekend settling price Volume (lot) Turnover (mln RMB)

rb1206

4,050

4,050

4,050

4,050

4

180

0

4,050

60

2.43

rb1207

4,114

4,177

4,114

4,177

24

274

-10

4,151

64

2.64

rb1208

4,133

4,162

4,102

4,162

-5

430

-50

4,162

138

5.68

rb1209

4,121

4,176

4,075

4,140

19

1,648

-206

4,144

1,416

58.33

rb1210

4,068

4,130

4,020

4,108

13

739,728

-90,326

4,112

5,059,090

206,672.53

rb1211

4,097

4,138

4,040

4,111

14

802

2

4,114

332

13.60

rb1212

4,089

4,119

4,021

4,096

7

222

22

4,102

232

9.41

rb1301

4,062

4,096

4,004

4,079

-7

113,890

12,316

4,081

214,006

8,688.05

rb1302

4,039

4,100

4,031

4,097

0

50

-4

4,089

12

0.49

rb1303

4,047

4,068

4,047

4,092

-11

30

-2

4,092

4

0.16

rb1304

4,086

4,125

4,049

4,105

-21

24

4

4,094

24

0.98

rb1305

4,080

4,139

4,039

4,110

-9

848

352

4,102

936

38.23

Rb Total

4,177

4,004

858,126

-77,902

5,276,314

215,492.55

Note: Change is calculated using close prices from June 1 and June 8

Page 17 of 28 © 2012 Factiva, Inc. All rights reserved.

1

lot = 10 tons.

The renminbi traded at 6.3276 against the U.S. dollar on June 4.

Wire contracts on SHFE, week ending June 8

Contract Open (RMB) High (RMB) Low (RMB) Close (RMB) Change (RMB) Open interest Open interest change Weekend settling price Volume (lot) Turnover (mln RMB)

wr1209

3,994

4,135

3,994

4,063

4

0

-4

4,063

14

0.57

wr1210

4,051

4,088

3,953

4,086

-4

6

-4

4,086

60

2.40

wr1211

4,086

0

4

0

4,086

0

0.00

wr1212

4,056

-9

2

0

4,056

0

0.00

wr1301

4,043

3

2

0

4,043

0

0.00

wr1303

4,067

0

4

0

4,067

0

0.00

Wr Total

4,135

3,953

18

-8

74

2.97

Note: Change is calculated using close prices from June 1 and June 8

1 lot = 10 tons.

The renminbi traded at 6.3276 against the U.S. dollar on June 4.

Gold contracts on SHFE, week ending June 8

Contract Open (RMB) High (RMB) Low (RMB) Close (RMB) Change

(RMB) Open interest Open interest change Weekend settling price Volume (lot) Turnover (mln RMB)

au1206

329.44

333.44

323.1

323.1

3.9

372

-192

323.67

240

79.30

au1207

331

334.85

321

323.3

1.5

42

-32

323.25

226

74.54

au1208

332.3

335.55

322.82

322.82

0.62

120

-12

323.7

110

36.47

au1209

333.02

336.53

322.6

324.73

2.89

142

-66

325.56

1054

349.84

au1210

333.54

336.11

323.19

323.61

0.71

70

4

324.77

146

48.16

au1211

334.4

335.85

322.97

324.96

1.86

56

16

326.31

60

19.85

au1212

333.5

337.3

322.51

324.93

2.3

113,362

-16,242

325.31

401,008

133,490.67

au1301

333.5

337.7

322.23

325.6

2.88

64

16

325.75

110

36.48

au1302

334

336.79

324.1

324.88

2.41

32

-2

324.49

8

2.64

au1303

335.37

336

322.72

322.72

1.13

16

-2

322.72

10

3.28

Page 18 of 28 © 2012 Factiva, Inc. All rights reserved.

au1304

334.68

337.01

334.55

321.73

0.48

10

0

321.73

14

4.70

au1305

334.51

337.08

327.19

327.19

4.1

26

8

327.19

38

12.75

Au Total

337.7

321

114,312

-16,504

403,024

134,158.67

Note: Change is calculated using close prices from June 1 and June 8

1 lot = 1,000 grams.

The renminbi traded at 6.3276 against the U.S. dollar on June 4.

Lead contracts on SHFE, week ending June 8

Contract Open

(RMB) High

(RMB) Low

(RMB) Close (RMB) Change (RMB) Open interest Open interest change Weekend settling price Volume (lot) Turnover (mln RMB)

pb1206

15,000

15,100

15,000

15,050

-100

72

-28

15,050

74

27.88

pb1207

14,940

15,160

14,900

15,020

-80

724

-218

15,030

330

124.25

pb1208

15,000

15,125

14,880

14,995

-85

2,168

48

15,025

742

278.51

pb1209

15,020

15,120

14,850

14,965

-95

792

386

14,995

588

221.12

pb1210

15,075

15,140

14,990

14,990

-45

110

60

15,000

86

32.39

pb1301

15,100

-40

2

0

15,100

0

0.00