TSI presentation

1. THE STEEL INDEX (TSI)
Tokyo Metals and Steel Forum
Coking Coal
Tim Hard, Managing Director
www.thesteelindex.com

2. Key Ferrous Bulk Commodities Performance YTD
90.00%
140.00%
190.00%
240.00%
290.00%
Jan-2016 Feb-2016 Mar-2016 Apr-2016 May-2016 Jun-2016 Jul-2016 Aug-2016 Sep-2016 Oct-2016 to-
date
Major bulk commodities index basis January 2016
TSI Premium Hard coking coal FOB Australia US$/tonne TSI Iron Ore fines 62% FE CFR China US$/tonne
TSI HMS 1&2 #80:20 Scrap CFR Turkey US$/tonne TSI ASEAN HRC [SAE] US$/tonne

3. Coking coal pricing change abrupt for quarterly buyers
$0
$50
$100
$150
$200
$250
$300
$350
Annual Benchmark Quarterly Quarterly TSI Index Linked (Q-1)

4. Monthly-linked already well over quarterly price
$0
$50
$100
$150
$200
$250
$300
$350
Annual Benchmark Quarterly Benchmark Monthly TSI Index-Linked

5. Steelmaking cost structure changes
150
200
250
300
350
400
450
0
50
100
150
200
250
Iron Ore Cost Coking Coal cost Implied Margin ASEAN HRC (RHS)
US$/t
US$/t

6. Premium Hard Market structure still evolving
0
5
10
15
20
25
30
35
40
BMA Anglo South 32 Rio Glencore Peabody
BMA Anglo South 32 Rio Glencore Peabody
Quarterly
Indexing

7. Quarterly Benchmark system pressured over 2016
-10
-5
0
5
10
15
0
0.5
1
1.5
2
Q1 2016 Q2 2016 Q3 2016 Q4 2016
Million Tonnes underlying settlement (LHS) Days before (RHS)
14 7 5
-10

8. Spot market activity remains robust through price surge
75
125
175
225
0
10
20
30
40
50
60
70
80
Transactions Platform
Bids Offers Price (RHS)
75
125
175
225
-
0.50
1.00
1.50
2.00
Transaction Platform
Bids offer Price (RHS)
Volumes per month: TSI PHCC, FOB AustraliaData points per month: TSI PHCC, FOB Australia
US$/tMMT
US$/t

9. Plenty of big potential changes in 2017

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