20 April 2012 -...

Please refer to Disclosures and Disclaimers at the end of the Research Report.

Metals Monthly wrap up

PhillipCapital (India) Pvt. Ltd.

Key Highlights • Flat and Long steel product in India continued with their price divergent trends in Dec 2013. Flat product prices corrected marginally by around 1% while Long products gained in range of 1% – 6% across different regions.

• Global HRC prices have seen 0% ‐ 2% gain in different regions. China export HRC and European prices stood flat while US, CIS and China domestic HRC prices saw marginal gains.

• Global Rebar prices gained across regions except CIS. It gained in Europe (+0.5%) and US (+3.6%) while fell in CIS (‐3.2%) region. Export rebar prices (+2.0%) in China saw improvement while it has fell in domestic market (‐1.1%) during the month.

• Global iron ore prices took a pause on its 2 month rising trend with 58%/ 63.5% Fe grade price declining by 2.8%/ 1.1% during the month. Low grade discounts further increased to 12.1% during Dec 2013 from 10.8% earlier. Similar discounts were seen last only a year back.

• NMDC has maintained its iron ore prices in Jan 2014 post Rs 200/tn hike taken in Dec 2013.

• Domestic pellet prices continued to move up gaining Rs 300/tn to Rs 7400/tn in Dec 2013

• Scrap prices continued to increase across regions except China (down 1.6% mom). Scrap prices in Europe have reported highest gain followed by India.

• Spot Coking coal prices were down by US$ 3.5/tn to US$ 133/tn. Thermal coal price have gained globally in the range of 1.5% ‐ 2.5%

• Apparent steel consumption in EU for Nov 2013 stood at 13.0mn tonnes, up 9.2% yoy and down 2.6% mom. Apparent/ Real steel consumption in India for Dec 2013 saw growth of 4.6%/ 1.2% yoy to 6.4/ 5.5mn tonnes respectively

• Global steel inventory excluding EU continued to decline with a 1% fall sequentially to 30.4mn tonnes. The fall was majorly led by falling Flat product inventories in China.

• Iron ore inventory at port in China stands at 81.3mn tonnes, up 1.4% mom. • Base metal prices saw strong momentum during the month with Zinc leading the pack and Aluminium acting as a laggard. Prices of aluminium/ zinc/ lead/ copper increased by 3.1%/ 10.0%/ 6.6%/ 4.6% respectively. Base metal prices in Shanghai exchange also seen similar trend however with lower magnitude except in aluminium (‐1.2% mom).

• SHFE – LME spreads decreased across metals in Dec 2013. This will increase the competitive pressures for players like Novelis in the Asian region.

• Aluminium regional premiums have gained (due to rise in cancelled warrants by 12% mom) in Shanghai, US and Europe region while it stood flat in Japan. Regional premium for zinc reported mix trends with fall in Shanghai and gain in Singapore. Regional premium for Lead fell during the month.

• Alumina prices gained marginally during the month. Alumina price as a % of LME stood flattish at 18.9% in Dec 2013. However they have seen a strong momentum in the start of the New Year.

• Caustic soda price stood flat sequentially in Dec 2013. • All base metals have seen a fall in LME inventory with copper leading the pack. LME inventory of aluminium/ zinc/ lead/ copper decreased by 0.2%/ 3.0%/ 7.3%/ 13.5% respectively.

Valuations FY14E (x) P/E P/BV EV/EBITDA

JSW Steel 10.0 1.2 6.2Tata Steel 9.8 1.0 6.6SAIL 15.7 0.7 13.0JSPL 12.1 1.1 9.6Hindalco 9.3 0.6 7.8Nalco 14.5 0.8 4.7Hindustan Zinc 8.2 1.5 4.4Sesa Sterlite 12.8 0.9 6.1

Regional Performance (rebased)

60708090100110120130140 India Brazil

Australia London

Indices (rebased)

60708090100110120130140

BSE Ssnsex

BSE Metal Index

Absolute Performance Change (table)

1M 3M 6M

Aluminium 3.1 (2.1) 1.9 Zinc 10.0 9.1 12.7 Copper 4.6 1.2 9.6 Lead 6.6 4.7 7.4 HRC (1.1) (0.8) 3.4 TMT 3.4 2.9 10.4 Iron Ore (0.7) 2.7 15.4 Coking Coal (2.6) (10.4) 2.3 Thermal Coal 1.5 8.0 8.8

Source: Company, PhillipCapital India Research Dhawal Doshi (+ 9122 6667 9769) [email protected] Dharmesh Shah (+ 9122 6667 9974) [email protected]

9 January 2014 / INDIA EQUITY RESEARCH / METALS – MONTHLY WRAP UP

INDEX Ferrous ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 3

Steel Prices ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 3

Raw Material Prices (Iron ore, Scrap, Coal) ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 6

Ferro Alloy Prices ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 9

Steel Profitability & Cost Index ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 10

Production & Inventory ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 11

Trade Data ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 13

Non Ferrous ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 15

Aluminium, Alumina & Bauxite ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 15

Zinc ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 20

Lead ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 22

Copper ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 24

Trade Data ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 27

– Aluminium ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 27

– Zinc & Lead ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 28

– Copper ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 29

LME Cancelled Warrant ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 30

Open Interest – LME ‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐‐ 31

– 2 of 33 –


Ferrous: Steel Prices

Domestic HRC – Regionwise(Rs / tonne) Domestic TMT – Regionwise (Rs / tonne)

34,500

35,500

36,500

37,500

38,500

39,500

40,500 Ahm Delhi Ludhiana

31,000

32,000

33,000

34,000

35,000

36,000

37,000

38,000 Chennai Mandi Gobingarh Mumbai

Domestic HRC prices fell by Rs200 – 400 /tn across regions in Dec 2013 Unlike HRC, TMT prices increased across regions in domestic market in Dec 2013. The quantum of increase varies from Rs 250‐2050/tn with highest gain reported in Chennai

India Plate 20 – 60MM – FOB (US$ / tonne) MS Ingot (Rs / tonne)

480

500

520

540

560

25,000

26,000

27,000

28,000

29,000

30,000

31,000 Raipur Raigarh

Plate prices remained unchanged at US$ 508/tn during Dec 2013however it has shown some increase in Jan 2014

Ingot prices gained by Rs 300 – 450/tn in Raigarh/ Raipur respectively in Dec 2013

Sponge Iron – Regionwise (Rs / tonne) Pig Iron – Regionwise (Rs / tonne)

17,500

18,500

19,500

20,500

21,500

22,500

23,500

24,500 Mandi Gobindgarh Raipur Raigarh

21,500

22,500

23,500

24,500

25,500

26,500 Rourkela Raipur

Sponge iron prices declined by Rs 200 – 250/tn in Raigarh/Raipurrespectively while it gained by Rs 100/tn in Mandi

Pig iron prices gained by Rs 200‐400/tn in Raipur and Rourkela respectively in Dec 2013

Source: Bloomberg, Steelmint, PhillipCapital India Research

– 3 of 33 –


China Export HRC (US$ / tonne) China Export Rebar (US$ / tonne)

480

500

520

540

560

580

600

620

475

500

525

550

575

600

Prices stood at US$ 525/tn in Dec 2013, flat mom

Rebar prices gained by US$ 10/tn to US$ 515/tn in Dec 2013

China Domestic HRC (Yuan / tonne) China Domestic Rebar (Yuan / tonne)

3,250

3,450

3,650

3,850

4,050

4,250

3300

3400

3500

3600

3700

3800

3900

China domestic HRC prices declining trend took a pause with 0.5% gainduring Dec 2013

Unlike HRC prices, China Rebar prices declined by 1.1% in Dec 2013

CIS Export HRC – (US$ / tonne) CIS Export Rebar – (US$ / tonne)

500

520

540

560

580

600

560

570

580

590

600

610

620

CIS HRC prices gained US$ 12.5 to US$ 537.5/tn in Dec 2013 Unlike HRC, CIS rebar prices declined by US$ 17.5/tn to US$ 565/tn in Dec 2013

Source: Bloomberg, PhillipCapital India Research

– 4 of 33 –


EU Domestic HRC (Euro / tonne) EU Domestic Rebar (Euro / tonne)

425

445

465

485

505

525Northern Southern

450

470

490

510

530

550Northern Southern

Price stood flat in both Northern as well as Southern Europe at 445euros and 430 euros respectively in Dec 2013

Price in Northern Europe gained by 2.5 Euros to 515 Euros while it declined 2.5 euro to 475 euros in Southern Europe in Dec 2013

US Import HRC – (US$ / tonne) US Import Rebar (US$ / tonne)

570

580

590

600

610

620

550

555

560

565

570

575

580

585

590

595

600

US import HRC gained US$ 10/tn to US$ 585/tn in Dec 2013 US import Rebar price gained US$ 20/tn to US$ 577.5/tn in Dec 2013

US Domestic Carbon Steel Plate (US$ / tonne)

700

710

720

730

740

750

760

770

Plate prices gained by US$ 20/tn to US$ 766/tn in Dec 2013


– 5 of 33 –


Raw Material Prices

NMDC Prices (Rs / tonne) Iron Ore Fines CFR China (US$ / tonne)

2,000

2,500

3,000

3,500

4,000

4,500

5,000

5,500

6,000

6,500 Fines 10‐150mm 6‐40mm

5.0%

7.5%

10.0%

12.5%

15.0%

95

105

115

125

135

145

155

16558% 63.5% discount

NMDC maintained its iron ore prices in Jan 2014 post Rs200/tn hiketaken in Dec 2013

Iron ore prices declined by 1.1% and 2.8% for 63.5% and 58% Fe grade respectively in Dec 2013. Lower grade discounts increased from 10.2% to 12.1%

SGX Iron Ore Swaps – 62% Fe content China Iron Ore spot Price Hebei (Yuan / tonne)

100

110

120

130

140

150

1601M 2M 3M

950

1000

1050

1100

1150

1200

SGX iron ore swaps prices for 1M/2M/3M decreased by 0.4%/ 1.2%/ 1.6% respectively in Dec 2013

China Iron ore spot prices stood flat in Dec 2013

63% Fe Pellet Barbill – (Rs / tonne) 63.5% Pellet CFR China (US$ / tonne)

6000

6500

7000

7500

8000

8500

130

140

150

160

170

180

Pellet prices gained Rs 300/tn to Rs 7,400/tn in Dec 2013

Global pellet prices fell marginally to US$ 160 during Oct 2013

Source: Bloomberg, Steelmint, Cris Infac, PhillipCapital India Research

– 6 of 33 –


Domestic Scrap (Rs / tonne) US Heavy Melting Scrap (US$ / tonne)

21,000

21,500

22,000

22,500

23,000

23,500

24,000

24,500

25,000

25,500

Raipur Mumbai

310

320

330

340

350

360

370

380

390

400

Scrap prices in Raipur & Mumbai gained 1.3% (Rs 300) and 5.3% (Rs1200) respectively in Dec 2013

US scrap prices gained marginally by US$ 2/tn (+0.6%) in Nov 2013

China Heavy Steel Scrap over 8MM (Yuan / tonne) Germany Scrap Price (Euro / tonne)

2,300

2,400

2,500

2,600

2,700

2,800

2,900

230

240

250

260

270

280

290

300

Scrap prices fell by 40 Yuan (‐1.6%) in Dec 2013 Scrap prices gained by 13 Euros (+5.4%) sequentially in Nov 2013

Hard Coking Coal (US$ / tonne) China Coking Coal (Yuan / tonne)

125

135

145

155

165

175

800

900

1000

1100

1200

1300

1400Pindingshan Yinchuan

Coking coal prices corrected by US$ 3.5/tn (‐2.6%) to US$ 133 in Dec2013

China coking coal price in Yinchuan/ Pindingshan stood flat at 900/ 1110 Yuan in Dec 2013

Source: Bloomberg, Steelmint, PhillipCapital India Research

– 7 of 33 –


Coking Coal Contract price ($ / tonne) China 1st Grade Coke (Yuan / tonne)

125150175200225250275300325350

1300

1400

1500

1600

1700

1800

Q4CY13 coking coal contract settled at US$ 152/tn, up US$ 7/tn qoq

Coke prices stayed flat in Dec 2013 at 1470 yuan

NCDEX Thermal Coal (Rs / tonne) McCloskey Newcastle Coal 6700Kcal Australia (US$ / tonne)

3500

3600

3700

3800

3900

4000

4100

4200

4300

75

80

85

90

95

Domestic coal prices stood flat in Dec 2013

Coal price gained by 1.5% (US$ 1.25/tn) in Dec 2013 to US$ 84.6

Richards Bay South African Coal 6000 Kcal (US$ / tonne) Indonesian Coal (US$ / tonne)

70

75

80

85

90

95

40

45

50

55

60

65

70

75Indonesian Melawan Coal ‐ 5400 KcalIndonesian Eco Coal ‐ 4200 KcalIndonesian Envirocoal ‐ 5000 Kcal

South African coal price gained US$ 1.3/tn (1.6% mom) in Dec 2013 toUS$ 85

Indonesian coal prices gained ~2.5% in Dec 2013


– 8 of 33 –


Ferro Alloy Prices

Ferro Chrome 65% Cr (US$ / lb) Ferro Chrome Ex‐factory 60% Cr (Rs / tonne)

2.00

2.05

2.10

2.15

2.20

2.25

2.30

2.35

US Free FOB Pittsburgh Low Carbon 65% CrEuropean Low Carbon 65% Cr

62,000

64,000

66,000

68,000

70,000

72,000

74,000

76,000

78,000

Ferro chrome prices in Europe and US stayed flat during Dec 2013

Domestic prices gained 0.7% to Rs72,000/tn in Dec 2013

Ferro Silicon Si 70% (Rs / tonne) Ferro Silicon FOB China 75% Si (US$ / tonne)

65,000

70,000

75,000

80,000

85,000

90,000

95,000

100,000

105,000

110,000 Ex‐Factory Landed Cost

1,350

1,375

1,400

1,425

1,450

1,475

Domestic prices gained Rs 1000/tn to Rs 76,500 while landed costgained Rs 1663/tn to Rs 109,217 in Dec 2013

Ferro Silicon prices in China gained by US$ 39/tn (+2.8%) to US$ 1,453 in Dec 2013

Ferro Manganese Ex‐Factory 70% Mn (Rs / tonne) Silico Manganese Ex‐Factory Mn: 60%, Si: 14% (Rs / tonne)

50,000

51,000

52,000

53,000

54,000

55,000

56,000

50,000

51,000

52,000

53,000

54,000

55,000

56,000

57,000

Domestic prices gained by Rs500/tn (0.9%) in Dec 2013 to Rs 55,000 Domestic prices gained Rs500/tn (‐0.9%) in Dec 2013 Source: Cris Infac, PhillipCapital India Research

– 9 of 33 –


Steel Profitability & Cost Index

BOF Steel Profitability Index – North America (US$ / tonne) EAF Steel Profitability Index – Europe (Euro / tonne)

‐20

0

20

40

60

80

100

120

140

‐20

‐10

0

10

20

30

40

50

60

Profitability index declined by US$ 3/tn to US$ 115 in Dec 2013 Profitability index improved to zero during Dec 2013 from the negative zone previous month

EAF Steel Cost Index – North America (US$ / tonne) EAF Steel Cost Index – Europe (Euro / tonne)

460

470

480

490

500

510

520

530

540

550

560

380

400

420

440

460

480

500


– 10 of 33 –


Production & Inventory

World Steel Production (mn tonnes) Regionwise Steel Production (mn tonnes)

120

122

124

126

128

130

132

134

136

138

5.0

15.0

25.0

35.0

45.0

55.0

65.0

75.0

China EU North AmericaAsia ex China CIS Others

World crude steel production for Nov 2013 stands at 127.4mn tonnes,up 4.7% yoy and down 5.1% mom

All regions reported negative growth on sequential basis. Steel production grew yoy in all regions except CIS (‐4%)

China Daily Steel Production (mn tonnes) India Steel Production (mn tonnes)

1.9

2.0

2.1

2.2

6.0

6.3

6.5

6.8

7.0

7.3

7.5

China daily crude steel production for 2nd 10 days of Dec 2013 stood at2.01mn tonnes, up 0.1% mom and 5.4% sequentially

Finished steel production for Dec 2013 stands at 6.6mn tonnes, up 5.0% yoy and 6.3% mom

China Iron Ore Production (mn tonnes) Iron Ore Production‐ Australia & Brazil (mn tonnes)

110

114

118

122

126

130

134

138

150

200

250

300

350

400

450

500

550Australia Brazil

China produced 138.7mn tonnes of iron ore in Nov 2013, up 11.2% yoy and 2.8% mom

Source: Bloomberg, JPC, WSA, CISA, PhillipCapital India Research

– 11 of 33 –


Global Steel Inventory excl EU (mn tonnes) China Steel Inventory (mn tonnes)

29 30 31 32 33 34 35 36 37 38 39 40

500600700800900

100011001200130014001500

Longs Flats

World inventory declined to 30.4mn tonnes in Dec 2013, 22.8% down from highest level reported in end of March 2013. It is down 1.0% mom

Long/Flats products inventory fell by 1.7%/ 3.0% mom during Dec 2013

US Service Centre Inventory Canada Service Centre Inventory (mn tonnes)

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

5

5.5

6

6.5

7

7.5

8

8.5

9

9.5

US Steel products inventory (mn tonnes)US Steel products months of inventory

12001250130013501400145015001550160016501700175018001850

US steel products months of inventory fell to 2.1 months in Oct 2013.This is lowest level reported since Mar 2010

Canada serice centre inventory fell by 32.0% YTD in CY13. Inventory in Oct 2013 fell by 4.0% on sequential basis. This is the lowest level of inventory reported post Jan 2010

Japan Steel Inventory (mn tonnes) China Iron Ore Inventory at Ports (mn tonnes)

7.8

7.9

8.0

8.1

8.2

8.3

8.4

8.5

8.6

65

70

75

80

85

90

Japan steel inventory gained by 3.1% sequentially to 8.3mn tonnes inOct 2013

Iron ore inventory at port stands at 81.3mn tonnes, up 1.4% mom. This is the highest inventory reported since last week of Nov 2012


– 12 of 33 –


Trade Data

India Steel Consumption (mn tonnes) India Steel: Imports – Exports (000 tonnes)

5.0

5.5

6.0

6.5

7.0

7.5

Apparent Real

250

350

450

550

650

750

850 Import Export

Apparent and real finished steel consumption saw growth of 4.6% and 1.2% yoy to 6.4mn tonnes and 5.5mn tonnes respectively in Dec 2013

Exports for Dec 2013 stood at 0.61mn tonnes, +27.3%/ ‐22.2% on yoyand mom basis. Imports stood at 0.44mn tonnes, ‐35.7% /+42.9% onyoy and mom basis respectively

China Net Steel Exports (mn tonnes) EU Apparent Steel Consumption (mn tonnes)

3.0

3.3

3.5

3.8

4.0

4.3

4.5

4.8

5.0

10.0

10.5

11.0

11.5

12.0

12.5

13.0

13.5

Net steel exports from China in Nov 2013 stood at 3.75mn tonnes, down7.9% and 4.6% on yoy and mom basis respectively

Apparent steel consumption in EU for Nov 2013 stood at 13.0mntonnes, up 9.2% yoy and down 2.6% mom

Europe Flat Products Net Imports/(Exports) (000 tonnes) Europe Long Products Net Exports (000 tonnes)

(700)

(600)

(500)

(400)

(300)

(200)

(100)

‐

100

200

450500550600650700750800850900

Flat steel net exports from Europe stood at 391KT in Oct 2013 against 484KT in Oct 2012

Net steel exports of long products stood at 560KT in Oct 2013, down35.7% and 9.2% on yoy and mom basis respectively

Source: Bloomberg, JPC, PhillipCapital India Research

– 13 of 33 –


US Net Steel Imports (000 tonnes) Japan Net Steel Exports (000 tonnes)

1200

1300

1400

1500

1600

1700

1800

2,550 2,650 2,750 2,850 2,950 3,050 3,150 3,250 3,350 3,450 3,550

US net steel imports in Oct 2013 stood at 1.8mn tonnes, up 38.7% yoy and 9.5% mom. This is the highest monthly imports since May 2012

Net steel exports in Nov 2013 stood at 2.6mn tonnes, down 8.2% yoy and 0.2% mom

China Iron Ore Imports (mn tonnes) China Iron Ore Imports‐ Australia & Brazil (mn tonnes)

55

60

65

70

75

80

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0 Australia Brazil

Iron ore imports in Nov 2013 stood at 77.8mn tonnes, up 18.3% and 14.8% on yoy and mom basis respectively. This is highest ever monthlyimports reported by China

Iron ore imports from Australia/ Brazil stood at 39.6/ 15.4mn tonnes in Nov 2013, up 18.9%/9.3% yoy and 10.2%/ 20.9% sequentially

Iron Ore Exports‐ Australia & Brazil (mn tonnes) Coking Coal Exports‐ Australia (mn tonnes)

20

25

30

35

40

45

50

55 Australia Brazil

11.0

11.5

12.0

12.5

13.0

13.5

14.0

14.5

15.0

Iron ore exports from Brazil in Nov 2013 stood at 22.6mn tonnes, down30.7% yoy and 30.6% mom

Australia coking coal exports in Aug 2013 stood at 14.4mn tonnes, up30.0% and 11.5% on yoy and mom basis respectively


– 14 of 33 –


Non Ferrous: Aluminium

LME Aluminium (US$ / tonne) Shanghai Aluminium (Yuan / tonne)

1,600

1,700

1,800

1,900

2,000

2,100

2,200

14000

14200

14400

14600

14800

15000

15200

15400

Prices gained by 3.1% (US$ 54) during Dec 2013 to US$ 1765 per tonne

Shanghai aluminium price continues to fall with 1.2% decline in Dec2013

SHFE – LME Spread (US$ / tonne) (excl regional premium) Forward Curve (US$ / tonne)

‐200

‐100

0

100

200

300

3M Cash

(80)(40)‐40 80 120 160 200 240 280 320

1,650

1,750

1,850

1,950

2,050

2,150

LME 3M 15M 27M

The arbitrage decreased by US$ 91/ 49 in spot/ 3 months forward toUS$ 136/ 150 respectively in Dec 2013

Contango increased by US$ 8 / US$ 26 / US$ 48 for 3M / 15M / 27M respectively to US$ 36 / US$ 143 / US$ 222

Regional Premium (US$ / tonne)‐ Shanghai Regional Premium (US$ / tonne)

220

240

260

220

230

240

250

260

270

280

290

300Japan US Europe

Premium in Shanghai increased by US$ 30/tn (+12.8%) in Dec 2013 toUS$ 265/tn. This is the highest ever premium reported over LME inShanghai

Aluminium premiums stood flat in Japan (US$246) during Dec 2013. It increased in US (US$ 36 to US$ 259) and Europe (US$ 20 to US$ 280) during the month


– 15 of 33 –


Warehousing Profit / Loss (US$ / tonne) LME / Used Beverages Cans spread – N America (US$ / tonne)

(60)

(40)

(20)

‐

20

40

60

80

100

27M 15M

100

150

200

250

300

350

400

450

1500

1600

1700

1800

1900

2000

2100LME aluminium UBC Spread (RHS)

Profit in financing deals for 15M stood flat at US$ 37 while it fell by US$39 to US$ 40 for 27M in Dec 2013

LME Aluminium / UBC spread receovered with a 54.2% mom (US$ 286/tn) gain in Sep 2013

Scrap – North America (US$ / tonne) Aluminium Scrap – Italy (Euro / tonne)

64

66

68

70

72

74

76

78

80

82

Used Beverage Cans Mixed low copper clipsOld Sheet Old CastTurnings (Clean and dry)

1220

1240

1260

1280

1300

1320

1340

1360

1380

Scrap prices in North America fell by 0% ‐ 4.6% sequentially in Sep 2013 Aluminium scrap prices in Italy fell by 1.2% (Euro 15/tn) in Dec 2013

Aluminium Scrap – US Foundry Ingot (US$ / lb) Aluminium Scrap – UK Foundary Ingot (GBP / tonne)

0.98

1

1.02

1.04

1.06

950

975

1000

1025

1050

1075

1100

1125

1150

Aluminium scrap prices fell marginally on sequential basis in Dec 2013 Aluminium scrap prices stood flat in Dec 2013 Source: Bloomberg, USGS, PhillipCapital India Research

– 16 of 33 –


Alumina Prices: Australia FOB (US$ / tonne) Alumina Prices: China CFR (US$ / tonne)

305

315

325

335

345

355

400

405

410

415

420

425

430

435

Alumina FOB price stood at US$ 328/tn, up 1.6% mom on restockingdemand and concerns of Indonesia banning bauxite exports

China alumina prices fell by US$ 6/tn at US$ 404/tn in Dec 2013

Alumina as a % of LME Caustic Soda – India (Rs / tonne)

15.0%

15.5%

16.0%

16.5%

17.0%

17.5%

18.0%

18.5%

19.0%

28500

30500

32500

34500

36500

38500

40500

Alumina price as a % of LME stood flat at 18.9% in Dec 2013. It hasseen further momentum in the new year

Caustic soda price stood flat sequentially at Rs 34800/tn in Dec 2013

Caustic Soda – US (US$ / tonne)

570

590

610

630

650

670

Caustic Soda prices stayed flat at US$ 639/tn since Sep 2013


– 17 of 33 –


Aluminium Production‐ World (000 tonnes) Regionwise Aluminium Production (000 tonnes)

3900

3950

4000

4050

4100

4150

4200

4250

200400600800

100012001400160018002000

China AmericaEurope Asia excl ChinaAfrica & Oceania Others

World aluminium production for Nov 2013 stood at 4.19mn tonnes, up5.8% yoy and down 1.6% sequentially

Excluding China, yoy production growth fell by 2.7% and 0.7% in Nov 2013and YTD CY13. Proudction in China for Nov 2013 stood at 1.95mn tonnes, up 17.6% and 0.2% on yoy and mom basis

Companywise Aluminium Production (tonnes) Aluminium Consumption‐ World (000 tonnes)

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000 Hindalco Nalco Balco VAL

3550

3650

3750

3850

3950

4050

World consumption in Oct 2013 stood at 4.0mn tonnes, up 0.9% and 4.8% on yoy and mom basis respectively. This is the highest monthly consumption reported. YTD CY13 consumption stood at 38.4mn tonnes, up 1.8% yoy

Regionwise Aluminium Consumption (000 tonnes) Alumina Production (000 tonnes)

200

700

1,200

1,700

2,200

2,700

3,200

3,700

4,200

World USA Europe China Others

0

1000

2000

3000

4000

5000

East & Central Europe ChinaSouth America EuropeOthers

All major regions have reported positive growth in consumptionsequentially in Oct 2013 except Europe. YoY production growth is drivenby China (+10.8%)

World alumina production for Nov 2013 stands at 9.16mn tonnes, up 11.4% yoy and down 0.2% mom. The yoy growth is majorly driven by China (+29.0% yoy)

Source: Bloomberg, IAI, Ministry of Mines, PhillipCapital India Research

– 18 of 33 –


World‐ Bauxite Production (mn tonnes) Regionwise‐ Bauxite Production (mn tonnes)

20.5

21.0

21.5

22.0

22.5

23.0

23.5

24.0

24.5

0.9

1.9

2.9

3.9

4.9

5.9

6.9

China Indonesia Australia

Brazil India Others

Bauxite production in Oct 2013 stood at 23.7mn tonnes, up 7.7% yoy and down 1.6% mom

All major regions have reported YoY growth in production (except India& others) while it stood almost flat sequentially except Indonesia and others regions

LME Aluminium Inventory (mn tonnes) Shanghai Aluminium Inventory (000 tonnes)

5.05

5.15

5.25

5.35

5.45

5.55

‐

30

60

90

120

150

180

210

240

270

LME aluminium inventory currently stands at 5.46mn tonnes,marginally down sequentially in Dec 2013

Shanghai aluminium inventory gained 32.2% mom during Dec 2013 after fall by ~97% since May 2013

World Aluminium Inventory (mn tonnes) Producer Inventory – Aluminium (000 tonnes)

6.95

7.05

7.15

7.25

7.35

7.45

7.55

2,125

2,150

2,175

2,200

2,225

2,250

2,275

2,300

2,325

2,350

2,375

World aluminium inventory fell 0.4% sequentially to 7.06mn tonnes inOct 2013. This is the lowest inventory reported post Aug 2012

Producer inventory gained 1.3% in Nov 2013 to 2.17mn tonnes

Source: Bloomberg, IAI, PhillipCapital India Research

– 19 of 33 –


Zinc

LME Zinc (US$ / tonne) Shanghai Zinc (Yuan / tonne)

1750

1800

1850

1900

1950

2000

2050

2100

2150

2200

14800

15000

15200

15400

15600

15800

16000

16200

16400

LME zinc prices reported highest gain across base metals with 10%(US$ 187) gains during Dec 2013 to US$ 2053 per tonne

Shanghai Zinc prices increased by 1.9% in Dec 2013


‐40

10

60

110

160

210

260

3M Cash

‐30

0

30

60

90

120

150

180

210

1750

1800

1850

1900

1950

2000

2050

2100

2150

2200LME 3M 15M 27M

The arbitrage decreased by US$ 161/ 122 in spot/ 3 months forward toUS$ 53/ 79 respectively in Dec 2013

Contango reduced by US$ 19 / US$ 42 / US$ 61 for 3M / 15M / 27M respectively to US$ 2 / US$ 45 / US$ 75

Regional Premium (US$ / tonne)

100

120

140

160

180

200

220Shanghai Singapore

Premium in Singapore gained by US$ 20/tn (+12.1%) to US$ 185 whileit fell in Shanghai by US$ 13 to US$ 180 in Dec 2013


– 20 of 33 –


Zinc Production (000 tonnes) Company wise production – India (tonnes)

950

1,000

1,050

1,100

1,150

1,200

1,250 Metal production Mine production

1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000

50,000

55,000

60,000

65,000

70,000

75,000

80,000

85,000

90,000 Hindustan Zinc Binani (RHS)

Mine /Metal production moved ‐2.6% /3.3% on mom basis in Oct 2013and ‐3.1% / 8.3% on yoy basis respectively

Zinc consumption (000 tonnes) LME Zinc Inventory (mn tonnes)

99010101030105010701090111011301150117011901210

0.85

0.90

0.95

1.00

1.05

1.10

1.15

1.20

1.25

Zinc consumption stood at 1.2mn tonnes in Oct 2013, up 12.6% and 4.2% on yoy and mom basis respectively. This is the highest evermonthly zinc consumption reported in a particular month

LME zinc inventory fell by 3.0% in Dec 2013. This is the lowest level of inventory reported since mid Sep 2012

Shanghai Zinc Inventory (000 tonnes)

215

235

255

275

295

315

335

Shanghai exchange inventory reversed its falling trend with 3.1% momgains in Dec 2013

Source: Bloomberg, ILZSG, Ministry of Mines, PhillipCapital India Research

– 21 of 33 –


Lead

LME Lead (US$ / tonne) Shanghai Lead (Yuan / tonne)

1900

2000

2100

2200

2300

2400

2500

13500

13750

14000

14250

14500

14750

15000

15250

15500

Lead prices gained by US$ 135 (+6.6%) in Dec 2013 to US$ 2191

Shanghai Lead prices gained by 2.2% during Dec 2013

Forward Curve (US$ / tonne) Regional Premium‐ Rotterdam (US$ / tonne)

(50)

(20)

10

40

70

100

130

160

1,900

2,000

2,100

2,200

2,300

2,400

2,500 LME 3M 15M 27M

28

38

48

58

68

78

88

Contango moved by US$ +4/ US$ ‐13/ US$ ‐30 for 3M / 15M / 27Mrespectively to US$ 29 / US$ 58/ US$ 77 in Dec 2013

Premiums fell by US$ 2.5 (‐5.9%) in Dec 2013 to US$ 40/tn

Lead Production (000 tonnes) Company wise production – Hindustan Zinc (tonnes)

325

425

525

625

725

825

925

1025Metal production Mine production

5,000

6,000

7,000

8,000

9,000

10,000

11,000

12,000

Mine / Metal production grew ‐5.1% /+0.2% on mom basis and +2.5% / 0.2% on yoy basis respectively in Oct 2013

Source: Bloomberg, ILZSG, Ministry of Mines, PhillipCapital India Research

– 22 of 33 –


Lead Consumption (000 tonnes) LME Lead Inventory (000 tonnes)

800

825

850

875

900

925

950

175

200

225

250

275

300

325

350

375

Lead consumption stood at 0.93mn tonnes in Oct 2013, up 0.5% and 5.1% on yoy and mom basis respectively

LME lead inventory fell by 7.3% sequentially in Dec 2013 to 214,000 tonnes

Shanghai Lead Inventory (000 tonnes)

5

25

45

65

85

105

125

145

Unlike LME, Shanghai lead inventory gained by 2.7% sequentially inDec 2013

Source: Bloomberg, ILZSG, PhillipCapital India Research

– 23 of 33 –


Copper

LME Copper (US$ / tonne) Shanghai Copper (Yuan / tonne)

6500

6700

6900

7100

7300

7500

7700

7900

8100

8300

48500

50500

52500

54500

56500

58500

60500

Copper price gained by US$ 322 (+4.6%) in Dec 2013 to US$ 7376 Shanghai Copper prices increased by 2.6% during Dec 2013


‐550

‐450

‐350

‐250

‐150

‐50

50

150

250

3503M Cash

‐250

‐200

‐150

‐100

‐50

0

50

100

150

200

6600

7000

7400

7800

8200

8600LME 3M 15M 27M

The arbitrage decreased by US$ 113/ 80 in spot/ 3 months forward toUS$ ‐48/ ‐58 respectively in Dec 2013

Contango decreased by US$ 17/ US$ 108 / US$ 178 for 3M / 15M / 27M respectively to US$ ‐16 / US$ ‐93 / US$ ‐142

Regional Premium (US$ / tonne) ‐ US Regional Premium (US$ / tonne)

100

110

120

130

140

150

160

170

180

0

25

50

75

100

125

150

175

200

225Singapore Rotterdam Shanghai

Premiums in US stood flat at US$ 143/tn since last week of Oct 2013 Premium in Singapore stood flat at US$ 135. Premium in Rotterdam/ Shanghai decreased by US$ 7.5/ 20 to US$ 135/ 177.5 respectively in Dec 2013


– 24 of 33 –


Copper Scrap (Euro / tonne)‐ France Copper Scrap China (US$ / tonne)

4600

4800

5000

5200

5400

5600

5800

6000

2950

3000

3050

3100

3150

3200

3250

3300

3350

Copper scrap prices in France gained by 1.3% (65 Euro/tn) in Dec 2013 Scrap prices in China corrected by 0.8% (US$ 23/tn) in Nov 2013

Copper Scrap Prices – Germany (Euro / tonne) Copper Mine Production (000 tonnes)

5000

5200

5400

5600

5800

6000

6200

1,300

1,350

1,400

1,450

1,500

1,550

1,600

Copper scrap prices in Germany stood flat at US$ 5080/tn during Dec2013

World mine production is up 7.6% yoy and down 1.3% mom in Sep2013

Copper Refined Production (000 tonnes) Companywise Production – India (tonnes)

200

450

700

950

1,200

1,450

1,700

1,950

Primary Refined Metal productionSecondary Refined Metal productionTotal Refined Metal production

‐

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000 Hindalco Sterlite Hindustan Copper

Refined production is up 4.4% yoy and down 1.5% sequentially in Sep2013. Refined copper market balance for Sep 2013 showed productiondeficit of 162,000 tonnes

Source: Bloomberg, ICSG, PhillipCapital India Research

– 25 of 33 –


Copper Consumption (000 tonnes) LME Copper Inventory (000 tonnes)

1550

1600

1650

1700

1750

1800

1850

1900

1950

200

250

300

350

400

450

500

550

600

650

700

World copper consumption for Sep 2013 stands at 1.93mn tonnes, up10.8% yoy and 8.4% mom. This is the highest ever monthlyconsumption reported in a particular month

LME copper inventory is down 13.5% sequentially in Dec 2013. It has corrected by 40.2% since July 2013

Shanghai Copper Inventory (000 tonnes) World Refined Copper Stocks (mn tonnes)

20

30

40

50

60

70

80

90

0.8

0.9

1.0

1.1

1.2

1.3

1.4

Shanghai copper inventory decreased by 39.8% in Dec 2013 to 23.1KT.It has corrected by 50.4% in last two months

World refined copper stocks currently stands at 1.06mn tonnes, down3.7% sequentially in Oct 2013

Source: Bloomberg, ICSG, PhillipCapital India Research

– 26 of 33 –


Trade data ‐ Aluminium

China Aluminium Net Exports (000 tonnes) China Alumina Net Imports (000 tonnes)

150

170

190

210

230

250

50

150

250

350

450

550

Net Aluminium exports from China in Nov 2013 stood at 0.23mntonnes, up 20.7% and 3.7% on yoy and mom basis respectively

Net alumina imports in China stood at 0.55mn tonnes in Nov 2013, up 20.2% yoy and 1.9% sequentially

China Bauxite imports (mn tonnes) Australia Alumina Exports (mn tonnes)

0.75

1.75

2.75

3.75

4.75

5.75

6.75

7.75

1.25

1.35

1.45

1.55

1.65

1.75

1.85

1.95

Bauxite imports in China in Nov 2013 stood at 5.37mn tonnes, up48.7% yoy and down 23.0% mom

Alumina exports from Australia in Oct 2013 stood at 1.65mn tonnes, down 5.8% and 0.7% on yoy and mom basis respectively


– 27 of 33 –


Trade data ‐ Zinc & Lead

China Refined Zinc Net Imports (000 tonnes) China Zinc Ore & Concentrates Imports (000 tonnes)

15

25

35

45

55

65

75

85

70

90

110

130

150

170

190

210

230

China refined zinc net imports for Nov 2013 stood at 73,528 tonnes, up91.4% yoy and down 1.2% sequentially

China’s imports of zinc ore & concentrates in Nov 2013 stood at 0.138mn tonnes, down 21.8% and 13.4% on yoy and mom baisrespectively

China Refined Lead Net Exports/ (Imports)‐ (tonnes) China Lead Ore & Concentrates Imports‐ (000 tonnes)

‐400

100

600

1100

1600

2100

2600

3100

75

95

115

135

155

175

195

215

Lead ore & concentrate imports in China stood at 0.105 mn tonnes in

Nov 2013, down 41.2% and 49.1% on yoy and mom basis respectively


– 28 of 33 –


Trade data ‐ Copper

China Refined Copper Net Imports (000 tonnes) China Copper Scrap Imports (000 tonnes)

150

175

200

225

250

275

300

325

350

275

300

325

350

375

400

425

450

475

China refined copper net imports for Oct 2013 stood at 0.31mn tonnes,up 33.2% and 10.1% on yoy and mom basis respectively

China copper scrap imports for Nov 2013 stood at 0.43mn tonnes,down 8.5% yoy and up 19.4% mom

China Copper Ore & Concentrates Imports (000 tonnes) Chile Copper Ore & Concentrates Exports (000 tonnes)

650

700

750

800

850

900

950

1000

1050

50

100

150

200

250

300

350

400

China copper ore & concentrates imports for Nov 2013 stood at 0.92mn tonnes, up 10.8% yoy and down 2.1% mom

Chile copper ore & concentrates exports for Oct 2013 stood at 0.304mn tonnes, up 2.2% yoy and 109.1% mom


– 29 of 33 –


LME Cancelled Warrants

LME Aluminium Cancelled Warrants (mn tonnes) LME Zinc Cancelled Warrants (000 tonnes)

1.50 1.60 1.70 1.80 1.90 2.00 2.10 2.20 2.30 2.40 2.50

300

400

500

600

700

800

LME Aluminium cancelled warrant currently stands at 2.35mn tonnes,up 12.3% mom

LME zinc cancelled warrant currently stands at 0.433mn tonnes, down18.8% mom. It has fell by 62.5% in H2CY13

LME Lead Cancelled Warrants (000 tonnes) LME Copper Cancelled Warrants (000 tonnes)

30

50

70

90

110

130

150

170

190

20

70

120

170

220

270

320

370

420

LME lead cancelled warrant declined 34.1% mom to 32,150 tonnes. It fell nearly 82.3% since last week of May 2013

LME copper cancelled warrant currently stands at 0.242mn tonnes, down 8.8% mom


– 30 of 33 –


Open Interest ‐ LME

Aluminium (000 contracts) Zinc (000 contracts)

640

660

680

700

720

740

760

780

800

820

245

255

265

275

285

295

305

315

Open interest in Aluminium LME contracts fell 1.1% in Dec 2013 Open interest in Zinc LME contracts gained by 5.8% sequentially in Dec2013

Lead (000 contracts) Copper (000 contracts)

100

110

120

130

140

150

215

235

255

275

295

315

Open interest in Lead LME contracts gained by 1.3% in Dec 2013 Open interest in Copper LME contracts reported highest gain across base metals with 6.3% sequential gain in Dec 2013


– 31 of 33 –

– 32 of 33 –


Management Vineet Bhatnagar (Managing Director) (91 22) 2300 2999 Sajid Khalid (Head – Institutional Equities) (91 22) 6667 9972 Jignesh Shah (Head – Equity Derivatives) (91 22) 6667 9735

Research Automobiles Deepak Jain (9122) 6667 9758 Banking, NBFCs Manish Agarwalla (9122) 6667 9962 Sachit Motwani, CFA, FRM (9122) 6667 9953 Consumer, Media, Telecom Naveen Kulkarni, CFA, FRM (9122) 6667 9947 Ennette Fernandes (9122) 6667 9764 Vivekanand Subbaraman (9122) 6667 9766 Cement Vaibhav Agarwal (9122) 6667 9967 Economics Anjali Verma (9122) 6667 9969

Engineering, Capital Goods Ankur Sharma (9122) 6667 9759 Jishar Thoombath (9122) 6667 9986 Infrastructure & IT Services Vibhor Singhal (9122) 6667 9949 Varun Vijayan (9122) 6667 9992 Raheel Arathodi (9122) 6667 9768 Metals Dhawal Doshi (9122) 6667 9769 Dharmesh Shah (9122) 6667 9974 Mid‐caps Kapil Bagaria (9122) 6667 9965 Raheel Arathodi (9122) 6667 9768

Oil&Gas, Agri Inputs Gauri Anand (9122) 6667 9943 Saurabh Rathi (9122) 6667 9951 Pharma Surya Patra (9122) 6667 9768 Retail, Real Estate Abhishek Ranganathan, CFA (9122) 6667 9952 Neha Garg (9122) 6667 9996 Quant Shikha Khurana (9122) 6667 9948 Sr. Manager – Equities Support Rosie Ferns (9122) 6667 9971

Sales & Distribution Kinshuk Tiwari (9122) 6667 9946 Ashvin Patil (9122) 6667 9991 Shubhangi Agrawal (9122) 6667 9964 Kishor Binwal (9122) 6667 9989 Sidharth Agrawal (9122) 6667 9934 Dipesh Sohani (9122) 6667 9756

Dilesh Doshi (Sales Trader) (9122) 6667 9747 Rajesh Ashar (Sales Trader) (9122) 6667 9746

Mayur Shah (Execution) (9122) 6667 9945

Contact Information (Regional Member Companies)

SINGAPORE

Phillip Securities Pte Ltd 250 North Bridge Road, #06‐00 Raffles City Tower,

Singapore 179101 Tel : (65) 6533 6001 Fax: (65) 6535 3834

www.phillip.com.sg

MALAYSIA Phillip Capital Management Sdn Bhd B‐3‐6 Block B Level 3, Megan Avenue II,

No. 12, Jalan Yap Kwan Seng, 50450 Kuala Lumpur Tel (60) 3 2162 8841 Fax (60) 3 2166 5099

www.poems.com.my

HONG KONG Phillip Securities (HK) Ltd

11/F United Centre 95 Queensway Hong Kong Tel (852) 2277 6600 Fax: (852) 2868 5307

www.phillip.com.hk

JAPAN Phillip Securities Japan, Ltd

4‐2 Nihonbashi Kabutocho, Chuo‐ku Tokyo 103‐0026

Tel: (81) 3 3666 2101 Fax: (81) 3 3664 0141 www.phillip.co.jp

INDONESIA PT Phillip Securities Indonesia

ANZ Tower Level 23B, Jl Jend Sudirman Kav 33A, Jakarta 10220, Indonesia

Tel (62) 21 5790 0800 Fax: (62) 21 5790 0809 www.phillip.co.id

CHINA Phillip Financial Advisory (Shanghai) Co. Ltd.

No 550 Yan An East Road, Ocean Tower Unit 2318 Shanghai 200 001

Tel (86) 21 5169 9200 Fax: (86) 21 6351 2940 www.phillip.com.cn

THAILAND Phillip Securities (Thailand) Public Co. Ltd.

15th Floor, Vorawat Building, 849 Silom Road, Silom, Bangrak, Bangkok 10500 Thailand

Tel (66) 2 2268 0999 Fax: (66) 2 2268 0921 www.phillip.co.th

FRANCE King & Shaxson Capital Ltd.

3rd Floor, 35 Rue de la Bienfaisance 75008 Paris France

Tel (33) 1 4563 3100 Fax : (33) 1 4563 6017 www.kingandshaxson.com

UNITED KINGDOM King & Shaxson Ltd.

6th Floor, Candlewick House, 120 Cannon Street London, EC4N 6AS

Tel (44) 20 7929 5300 Fax: (44) 20 7283 6835 www.kingandshaxson.com

UNITED STATES Phillip Futures Inc.

141 W Jackson Blvd Ste 3050 The Chicago Board of Trade Building

Chicago, IL 60604 USA Tel (1) 312 356 9000 Fax: (1) 312 356 9005

AUSTRALIA PhillipCapital Australia

Level 37, 530 Collins Street Melbourne, Victoria 3000, Australia

Tel: (61) 3 9629 8380 Fax: (61) 3 9614 8309 www.phillipcapital.com.au

SRI LANKA Asha Phillip Securities Limited

Level 4, Millennium House, 46/58 Navam Mawatha, Colombo 2, Sri Lanka

Tel: (94) 11 2429 100 Fax: (94) 11 2429 199 www.ashaphillip.net/home.htm

INDIA PhillipCapital (India) Private Limited

No. 1, C‐Block, 2nd Floor, Modern Center , Jacob Circle, K. K. Marg, Mahalaxmi Mumbai 400011 Tel: (9122) 2300 2999 Fax: (9122) 6667 9955 www.phillipcapital.in

http://www.phillip.com.sg/

http://www.poems.com.my/

http://www.phillip.com.hk/

http://www.phillip.co.jp/

http://www.phillip.co.id/

http://www.phillip.com.cn/

http://www.phillip.co.th/

http://www.kingandshaxson.com/

http://www.kingandshaxson.com/

http://www.phillipcapital.com.au/

http://www.ashaphillip.net/home.htm

http://www.phillipcapital.in/


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