China Steel FerroAlloys Overview and General Prospect of

China Steel & Ferro-Alloys -------Overview and General Prospect of 2017 Mr. Karl Liu, GM of SINO-MINEMET Intl Co (China) Managing Directot of Ferro-Alloys. Com

ABOUT SINO-MINEMET • Founded in 1999 by China National Coal Energy and became shareholdings in 2005. • Export Coal, Coke, Metals and Ferroalloys; • Import Ores, alloys and scrap, Coal related Machines • 2010 invested in Metallurgical Ca. Si Plant, 40 K mt/pa with top grade quality. • Licensed A Class company in exporting ferroalloys. • Major exporter of Fe. Si, Ca Metal, Mg Metal, Mn Metal, Fe. V , and CR. /MN ore and Alloys trading.

OUTLINE • Part I. Chinese Steel Industry Overview • Part II. Iron ore, Coal, Mn /Cr ore • Part III Chinese Ferro-Alloys Overview and • Outlook • . Conclusion

Part I. Chinese Steel Overview 1. Steel Capability and Production in 2016 Capacity: 808 million tons crude steel Pig Iron 701 Million tons Total output 1138 million tons(including process products) Demands: acutal consumption 670 million tons Trade: import Steel 13. 21 millon tons, Iron ore: 1024 million tons Export Steel: 108 million tons

Chinese Steel Overview on 2016 • Investment: Smetering and Processing: 416. 1 billion, down 2. 2% • Mining 97. 8 billion, down 28. 4% • Income : 2800 billion RMB, Profit 38. 3 Billion RMB , only 1. 8% • Outlook: Steel Demands in 2017 : 660 million tons , will down 1. 6% • Output in 2017 : 788 Million tons , will down 2. 48% • In General, Chinese Steel in 2017: Low profit

Coal, Iron Ore, Mn Ore, Cr Ore Overview 2016 • IRON ORE: Global Output : 2. 05 Billion Tons • China Consumption : 1. 1 Billion tons • COAL&COKE: Global Coal output: 7. 78 billion tons • Coke Coal: 2. 1 billion tons • China Coal Output: 3. 34 billion tons • import Coal: 250 million tons • Manganese Ore: Global 54 miilion tons • China imported: 17. 08 miilion tons • up 8. 2% • Domestic : 8 million tons • Manganese Alloys : 10 miilion tons • El. Mn metak : 2 million tons •

Coal, Iron Ore, Mn Ore, Cr Ore Overview 2016 • Manganese Alloy Output in coming 3 years: 3 million new capacity • Jilin Ferroalloys(inner Mogolia : 1 million Si. Mn • Tianyuan Manganese: 1 million Si. Mn • Others; 1 million tons • In General Mn ore demands keep growing , unless Si. Mn Capacity not full operated before 2020 • Chrome Ore: Global Output : 30 million tons • China imported: 10. 58 Million tons , • only 1. 8% up • China consumpted: 11 millions of Cr ore • New capacity: 2. 6 million tons before 2020 • Additional Cr demands 5. 20 Million tons

Part III. Chinese Fe-Alloys Overview&Outlook Capability and Production : 40 Millions tons 2016 output: 35. 58 Million tons Market Overview and trend: S. A Cr ore : 300% up to usd 420/dmtu Current: usd 360 -390 BHP Mn ore : from USD 2. 95 up to usd 9. 50/dmtu , up by 222%, BHP net Profit in 2016: 4. 7 billion US Dollars Current: usd 4. 95 -5. 3/dmtu , down by 40% Si. Mn RMB 9800 down to RMB 5900/mt

Part III. Chinese Fe-Alloys Overview&Outlook Policy and other fators Not encouraged to Exp: Export Tax decreased 5% Fe. Si 20%; Si. Mn/Fe. Mn 20%; Fe. Cr 15% Currency value: invalue or devalue ? Cost increased: land transportation Port Logistic Charge Labor cost Others

Conclusion Market is growing: 1 Q is worse than last 4 Q Mn Ore import Volume will be driving , same or more Cr Ore&Fe. Cr: import Volume in 1 Q declined, Fe. Cr price will stop falling shortly Ore&Si. Mn: current price will not stand by, price will bottom up 2 Q Fe. Si: price is growing and supply balanced demands Noble Alloys: Mo and Fe. V is growing due to raw materials short supply Invested in Thailand, Malysia, Indonesia may be good choices.

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