Nonferrous Scrap Metal Market Trends

Nonferrous Division Executive Committee ISRI 2013 Fall Committee and Board Meetings

San Francisco, CAOctober 23, 2013

YTD Change in NF Metal Prices

Tin Zinc Lead Copper Aluminum Nickel-17.0%

-12.0%

-7.0%

-2.0%

3.0%

8.0%

0.1%

-4.9%-5.9%

-8.3%-9.2%

-14.1%

Year-to-Date Change in LME Official 3-Mo. Nonferrous Metal Asking Prices Dec 31, 2012 - October 22, 2013

Cu Scrap Spreads Have Narrowed...

YTD Change in Domestic Cu Scrap Usage

1H Domestic US Copper Consumption:

- 2013: 380,000 mt- 2012: 369,000 mt% CHG: 3%

First Half 2013 U.S. Copper Scrap Exports

% Change in Volume of YTD U.S. Copper Scrap Exports:

- Total: -7%- China: -9%- RoW: -1%

YTD 2013 U.S. Copper Scrap Exports in $

First Half 2013 U.S. Aluminum Scrap Exports

% CHG in Volume of YTD U.S. Aluminum Scrap Exports:

- Total: -13%- China:-13%- RoW: -13%

YTD Change in Domestic Al Scrap Usage

Secondary Smelters

Independent Mill Fabricators

Foundries Other Consumers0

200

400

600

800

1000

12001110

843

484

1120

849

604

Estimated Metallic Domestic Recovery from Purchased New and Old Aluminum Scrap, Jan-Jul 2012 vs Jan-Jul 2013

(thousand metrics tons)Source: U.S. Geological Survey

Jan-Jul 2012 Jan-Jul 2013

Year-to-Date NF Scrap Metal Exports

Commodity JUL ‘13 JUN ‘13 MAY ‘13 JAN-JUL '13

JAN-JUL '12

% CHG

Copper Scrap 92,707 95,643 96,531 651,892 697,575 -7%

Aluminum Scrap

155,505 152,963 157,177 1,219,064 1,063,822 -13%

Nickel Scrap 2,496 2,207 2,162 14,531 15,908 -9%

Lead Scrap 1,742 3,707 3,101 20,010 15,004 33%

Zinc Scrap 5,302 7,158 7,072 47,153 51,013 -8%

Exchange Rates

Jan-

08

Apr-0

8

Jul-0

8

Oct-0

8

Jan-

09

Apr-0

9

Jul-0

9

Oct-0

9

Jan-

10

Apr-1

0

Jul-1

0

Oct-1

0

Jan-

11

Apr-1

1

Jul-1

1

Oct-1

1

Jan-

12

Apr-1

2

Jul-1

2

Oct-1

240,000,000

50,000,000

60,000,000

70,000,000

80,000,000

90,000,000

100,000,000

110,000,000

120,000,000

130,000,000

60.0

65.0

70.0

75.0

80.0

85.0

90.0

Cu Scrap Exports (kg) US Dollar Index

US Dollar and Copper Scrap Exports are Negatively Correlated (-.6%)

Outlook

Uncertainty remains the recurring theme with unsettled questions on:

• Global supply surpluses

• Domestic scrap inventories

• U.S. Budget, debt ceiling, regulatory challenges

• LME rules changes and investment demand

• Timing of Fed tapering and exchange rate volatility

• Last but not least, Chinese demand and Euro zone recovery

World Bank Price Forecasts

Aluminum Copper Lead Nickel Tin Zinc

$/mt $/mt ¢/kg $/mt ¢/kg ¢/kg

2013 1,800.00 7,100.00 210 14,000 2,200.00 190

2014 1,850.00 7,050.00 212 15,000 2,220.00 215

2015 1,900.00 7,000.00 215 16,000 2,250.00 220

Updated October 2013.