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COMMODITY NEWSBRIEFS: 15 OCTOBER 2015 Please note that these articles are available in electronic format and can be requested and delivered via e-Mail.

(http://intra.spoornet.co.za) Natasha.Havenga@transnet.net

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The information contained in this publication is for general information purposes only. The information is provided by Transnet Freight Rail, a division of Transnet Limited, and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the publication, or the information, products, services, or related graphics contained in the publication for any purpose. Any reliance you place on such information is therefore strictly at your own risk. In no event will we be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of profits arising out of, or in connection with, the use of this publication. This publication may refer to other publications which are not under the control of Transnet Freight Rail. We have no control over the nature, content and availability of those other publications. The inclusion of any other publications or other website links does not imply a recommendation or endorse the views expressed within them. Every effort is made to keep the content of the publication correct and complete. However, Transnet Freight Rail takes no responsibility for, and will not be liable for information in the publication being incorrect or incomplete. Transnet Freight Rail also does not guarantee the availability of the publication at any specific intervals

FAST MOVING CONSUMER GOODS STRIKE COST CERES FRUIT GROWERS R10M, WORKERS R7M (News24, 15/10/2015) The six-week long strike over wage negotiations cost Ceres Fruit Growers (CFG) about R10m, the company said on Wednesday. CFG and the Food and Allied Workers Union (Fawu) on Tuesday evening agreed to a wage increase of 8.25%, a move hailed by the union as a "victory”. Managing director Francois Malan said in a statement he was grateful and relieved that an agreement has been reached, putting an end to the “crippling” strike action. “We have a big challenge to get our operations back on track and to get to work. Ceres workers are more than R7m poorer [in lost wages] because of the unprotected strike and this action has also cost CFG and its growers about R10m [loss of income and damage to buildings],” he said. FUEL SUPPLY CONCERNS WEIGH ON OIL (Business Report, 15/10/2015) Oil prices diverged in Asia on Thursday as a report showing increased production by the Opec cartel bolstered expectations a supply glut will persist well into next year. Weak economic data from the United States and China further confirmed the global economic slowdown this year and next projected by the World Bank and International Monetary Fund, likely denting oil demand. Traders are also awaiting the release later on Thursday of data on US commercial crude inventories in the week ending October 9 to gauge demand in the world's top oil consumer. Market observers expect a build in the stockpiles, which would indicate softer demand. US benchmark West Texas Intermediate (WTI) for November delivery dipped 0.28 percent to $46.54 and Brent crude for November, which expires Thursday, climbed 0.31 percent to $49.30 at around 03h30 GMT. Both contracts fell on Wednesday. The recent price falls for both contracts have wiped out most of last week's nine percent gains that helped WTI breach $50 a barrel for the first time since July. “Oil prices tumbled... this week as investors reacted to the Opec monthly report and China economic data,” said Sanjeev Gupta, head of the Asia Pacific oil and gas practice at professional services firm EY. The Organisation of the Petroleum Exporting Countries said its output rose by 110,000 barrels per day to 31.5 million in September as the group continued to pump above its target. Gupta added that traders were still concerned about the Chinese economy following weak trade and inflation data this week, while US retail sales figures on Wednesday were also well below expectations.

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MINERAL MINING THE VALUE OF SOUTH AFRICA’S TOP MINERS MORE THAN HALVED IN JUST A YEAR (Mining, 15/10/2015) The combined worth of South Africa's 35 top mining companies dropped 55% since June 2014, the latest report by consultancy PwC shows. According to the analysts, the dramatic fall in overall market capitalization reflects the impact of the ongoing commodities rout and other challenges the local industry has faced in the last year, such as strikes and power shortages. The companies, with a primary listing on the JSE and a market capitalization of around US$15,000 ($200 million rand) and up, have lost 304 billion rand ($23 billion) as of Sept 30, 2015, from 675 billion rand on June 30 last year. Labour costs remain the main cost component in South Africa’s mining industry, says the report, though it adds that this item share decreased from 47% to 45% this year. In terms of sectors, coal is still the biggest revenue generator for the country, but platinum production has improved substantially to become South Africa’s second-largest export earner. The study also highlights the importance that iron ore mining has had over the last ten years and reveals that gold production has finally reversed its downward trend over the last two years. However, the precious metal has lost its place in an economy it once dominated. The country, the world’s largest producer of platinum, relies on mining for more than half of its exports and the industry employs about 440,000 people. But the country’s mining sector is facing a crisis as prices for the precious metal used mainly in catalytic converters to reduce emissions recently dropped to six-year lows, forcing miners to slash costs even further. TRANSNET TFR AND ROAD HAULIERS MAKE PARTNERSHIP MOVES (FTW, 16/10/2015) Public private partnerships, collaboration, joint ventures … call them what you will, they’re the way of the future, and Transnet Freight Rail has made some significant moves. “In the US the biggest customers of rail are road transporters, and it’s an area in which TFR is making an impact,” says executive manager, intermodal business unit, Wiseman Madinane. “In addition to the memorandum of understanding (MoU) already signed with Imperial, we’ve signed another MoU with a major road transporter that handles over 50 000 TEUs a year.” The deals primarily target express traffic and will see the road hauliers doing the short haul while TFR does the long-haul. POOR TRANSPORT LINKS STIFLE ECONOMIC GROWTH IN AFRICA (Engineering News, 15/10/2015) Within sub-Saharan Africa (SSA) there are fifteen landlocked countries, with an average distance of 1 000 km to the sea, says WSP | Parsons Brinckerhoff Africa development, transportation and infrastructure divisional director Vishaal Lutchman. This means these countries are reliant on infrastructure networks – currently poorly installed and not well maintained – to conduct trade and grow their industries and economies, he notes. “There is no doubt that the current poor state of transport links between African countries continues to stifle trade and expansion opportunities on the continent,” adds Johannesburg Chamber of Commerce and Industry president Advocate Fay Mukaddam. “The ability to increase intra-Africa trade, which is essential to sustainable growth on the continent, presents significant motivation for integration. There is a dire need for public and private sectors across the SSA region to continue developing key transport corridors.” The challenge is the numerous complexities to regional integration, such as political instability, outdated and misaligned trade policies and the fact that SSA countries are at various levels of development, which means there is no common base to work from. The integration of major transportation infrastructure projects needs to be completed on a government-to-government level. “This is vital in unlocking true economic potential, which also enables the creation of more jobs and trade,” says Mukaddam. “Today’s decisions will have an impact on the future of the transport industry. What will it mean if there is a lack of planning and future vision, especially in the face of rising economic pressures?” GE SEEKS INROADS INTO AFRICA RAILWAYS MARKET (Business Report, 15/10/2015) General Electric (GE) sees the potential to supply more locomotives built in South Africa to customers on the rest of the continent, as African governments expand and upgrade railways to boost economic growth. The US company, which has a partnership with the engineering unit of South African state-owned rail operator Transnet, had recently exported 26 locomotives to Mozambique and was looking for more opportunities, GE South Africa chief executive Thomas Konditi said on Tuesday. African governments were investing in rail infrastructure for freight as road transportation was more expensive, he said. Transportation, and rail in particular, “has to be part of any economic growth”, said Konditi, who is also GE’s head of transportation in Africa. GE and Transnet Engineering are assembling locomotives at a facility east of Pretoria. The

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company, which is based in Fairfield, Connecticut, was one of four winners of a R50 billion contract awarded by Transnet Freight Rail in March last year to supply 1 064 diesel and electric trains over four years. The factory also makes locomotives for export to other African countries under an agreement between the two companies. CURRENCIES AND PRICES

ALSI: 3 mnth to 14 Oct 15

(Mail & Guardian, 15/10/2015)

JSE AS AT 17:04PM 14 OCTOBER 2015

All Share Index 14/10 53,059

- 4.00 - 0.008%

Industrials Index 14/10 45,034

- 282.20 - 0.62%

Financials Index 14/10 43,798

- 127.45 - 0.29%

Top 40 Index 14/10 47,612

- 31.72 - 0.07%

Industrial 25 Index 14/10 70,912

+ 63.94 + 0.09%

Financial 15 Index 14/10 16,302

- 76.27 - 0.47%

Resources 10 Index 14/10 36,692

- 6.40 - 0.02%

Alt-X Index 14/10 1,553

- 7.01 - 0.45%

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WORLD INDICATORS

FOREX

Rand/Dollar 05:30 13.2076

- 0.35 - 2.55%

Rand/Pound

05:45 20.4005

- 0.23 - 1.13%

Rand/Euro 05:45 15.1616

- 0.26 - 1.68%

COMMODITIES

Gold (usd/oz) 05:30 1,183.61

+ 13.71 + 1.17%

Platinum (usd/oz)

05:30 999.16

+ 12.16 + 1.23%

Brent (usd/barrel) 04:36 49.30

+ 0.06 + 0.12%

WORLD MARKETS

Wall St (DJIA) 14/10 16,925

- 157.14 - 0.92%

Germany (DAX)

14/10 9,916

- 203.98 - 2.02%

Japan (Nikkei) 04:36 18,029

+ 138.21 + 0.77%

(Business Report, 15/10/2015)

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(TFR Commercial Management: Business Performance Dept)

Petrol/ Diesel Price

YR2015

07-Jan-

15

04-Feb-

15

04-Mar-

15

01-Apr-

15

06-May-

15

03-Jun-

15

01-Jul-

15

05-Aug-

15

02-Sep-

15

07-Oct-

15

04-Nov-

15

02-Dec-

15

COASTAL

95 LRP (c/l) 1083.00 990.00 1086.00 1246.00 1246.00 1293.00 1334.00 1283.00 1214.00 1218.00

95 ULP (c/l) 1083.00 990.00 1086.00 1246.00 1246.00 1293.00 1334.00 1283.00 1214.00 1218.00

Diesel 0.05% (c/l) 997.49 895.49 969.49 1090.09 1085.09 1134.09 1138.09 1062.27 1008.27 1061.27

Diesel 0.005% (c/l) 1001.89 899.89 973.89 1096.49 1091.49 1137.49 1141.49 1067.67 1016.67 1067.67

Illuminating Paraffin (c/l) 697.728 595.728 668.728 690.828 685.828 727.828 733.828 663.828 608.828 658.828

Liquefied Petroleum Gas

(c/kg) 1829.00 1679.00 1833.00 1918.00 1935.00 2035.00 2091.00 2002.00 1887.00 1898.00

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GAUTENG

93 LRP (c/l) 1102.00 1009.00 1105.00 1261.00 1261.00 1308.00 1352.00 1301.00 1232.00 1230.00

93 ULP (c/l) 1102.00 1009.00 1105.00 1261.00 1261.00 1308.00 1352.00 1301.00 1232.00 1230.00

95 ULP (c/l) 1124.00 1031.00 1127.00 1289.00 1289.00 1336.00 1377.00 1326.00 1257.00 1261.00

Diesel 0.05% (c/l) 1028.09 926.09 1000.09 1122.79 1117.79 1166.79 1170.79 1094.97 1040.97 1093.97

Diesel 0.005% (c/l) 1032.49 930.49 1004.49 1129.19 1124.19 1170.19 1174.19 1100.37 1049.37 1100.37

Illuminating Paraffin (c/l) 747.928 645.928 718.928 743.828 738.828 780.828 786.828 716.828 661.828 711.828

Liquefied Petroleum Gas

(c/kg) 2011.00 1861.00 2015.00 2100.00 2117.00 2217.00 2273.00 2184.00 2069.00 2080.00

YR2014

01-Jan-

14

05-Feb-

14

05-Mar-

14

02-Apr-

14

07-May-

14

04-Jun-

14

02-Jul-

14

06-Aug-

14

03-Sep-

14

01-Oct-

14

05-Nov-

14

03-Dec-

14

COASTAL

95 LRP (c/l) 1320.00 1359.00 1395.00 1398.00 1383.00 1361.00 1392.00 1392.00 1325.00 1320.00 1275.00 1206.00

95 ULP (c/l) 1320.00 1359.00 1395.00 1398.00 1383.00 1361.00 1392.00 1392.00 1325.00 1320.00 1275.00 1206.00

Diesel 0.05% (c/l) 1260.55 1284.75 1311.95 1299.15 1269.37 1245.79 1259.79 1254.17 1228.79 1215.79 1154.79 1101.49

Diesel 0.005% (c/l) 1263.95 1288.15 1316.35 1304.55 1274.77 1249.19 1263.19 1258.57 1234.19 1221.19 1161.19 1106.89

Illuminating Paraffin (c/l) 963.828 975.828 991.828 953.028 934.028 924.028 947.028 940.028 921.028 907.028 855.028 805.728

Liquefied Petroleum Gas

(c/kg) 2260.00 2314.00 2372.00 2350.00 2346.00 2319.00 2377.00 2365.00 2257.00 2269.00 2164.00 2039.00

GAUTENG

93 LRP (c/l) 1336.00 1375.00 1411.00 1416.00 1401.00 1379.00 1408.00 1408.00 1341.00 1343.00 1298.00 1229.00

93 ULP (c/l) 1336.00 1375.00 1411.00 1416.00 1401.00 1379.00 1408.00 1408.00 1341.00 1343.00 1298.00 1229.00

95 ULP (c/l) 1357.00 1396.00 1432.00 1439.00 1424.00 1402.00 1433.00 1433.00 1366.00 1361.00 1316.00 1247.00

Diesel 0.05% (c/l) 1287.15 1311.35 1338.55 1329.75 1299.97 1276.39 1290.39 1284.77 1259.39 1246.39 1185.39 1132.09

Diesel 0.005% (c/l) 1290.55 1314.75 1342.95 1335.15 1305.37 1279.79 1293.79 1289.17 1264.79 1251.79 1191.79 1137.49

Illuminating Paraffin (c/l) 1009.728 1021.728 1037.728 1003.228 984.228 974.228 997.228 990.228 971.228 957.228 905.228 855.928

Liquefied Petroleum Gas

(c/kg) 2442.00 2496.00 2554.00 2532.00 2528.00 2501.00 2559.00 2547.00 2439.00 2451.00 2346.00 2221.00

(SAPIA online)

Daily prices for 14 October 2015

LME Official Prices, US$ per tonne

Contract Aluminium Alloy Aluminium Copper Lead Nickel Tin Zinc NASAAC

Cash Buyer 1680.00 1568.50 5277.00 1776.00 10370.00 15875.00 1793.50 1690.00

Cash Seller & Settlement 1690.00 1569.00 5278.00 1776.50 10375.00 15900.00 1794.00 1695.00

3-months Buyer 1690.00 1588.00 5250.00 1785.00 10400.00 15850.00 1815.00 1700.00

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Contract Aluminium Alloy Aluminium Copper Lead Nickel Tin Zinc NASAAC

3-months Seller 1700.00 1588.50 5252.00 1786.00 10405.00 15900.00 1818.00 1710.00

Dec 1 Buyer 1690.00 1640.00 5210.00 1818.00 10410.00 1838.00 1750.00

Dec 1 Seller 1700.00 1645.00 5220.00 1823.00 10510.00 1843.00 1760.00

15-months Buyer 15720.00

15-months Seller 15770.00

Dec 2 Buyer 1705.00 5200.00 1853.00 10470.00 1855.00

Dec 2 Seller 1710.00 5210.00 1858.00 10570.00 1860.00

Dec 3 Buyer 1777.00 5195.00 1868.00 10480.00 1873.00

Dec 3 Seller 1782.00 5205.00 1873.00 10580.00 1878.00

(London Metal Exchange, 15/10/2015)

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