www.metalbulletinresearch.com

l Status of the iron ore financial market: which indices are most activelytraded? Who are the main principals, brokers and exchanges?

l How has the market developed so far compared to other relevant benchmarks?

l Perspectives for the next 5 years: which contract could become thereference? What trading volumes could we expect?

NEW

Trading Iron OreAn in-depth and independent analysis of the iron oretrading market and how it could evolve

In association with:

www.metalbulletinresearch.com

• Has the market definitelytaken off or can it still die?

• How could the marketevolve in the next five years? – Is the current setup the

final one? – Could a new index or physical

futures take over from theestablished ones and becomethe new reference?

– Who could become largeparticipants in financial iron ore trading?

– What are our expected tradingvolumes for the next 5 years?

• Do we expect significantshifts in the physical ironore market that couldimpact on financialtrading? What about majorshocks in the Far Easteconomies or dramaticmerger-acquisitions?

• Could the new iron oretrading market develop in other hubs? If so which ones?

The long established iron ore market hasprobably changed more in the last three yearsthan in the previous 50.

This brand new study, Trading Iron Ore: An in-depth and independent analysis of the ironore trading market and how it could evolve,Metal Bulletin Research provides a detailedanalysis of the current status of the physicaland financial iron ore markets, and how theycould evolve over the next five years.

Iron ore is the largest dry bulk commoditytraded worldwide with a seaborne tradingvolume that reached 1.12bn tonnes in 2011. The growth in international iron ore seaborneflows has been primarily driven by a surge inChinese imports, which have been multipliedby almost 10 in the last decade, to reach 687mtonnes in 2011.

In the meantime, the pricing mechanism of iron ore procurement worldwide has changed dramatically.

The tremendous price swings of 2008-09 gavethe final blow to the old benchmark system.

We had another test of the sharp volatility iniron ore prices more recently, with for instancethe CFR Qingdao market losing $60/dmt in amatter of weeks in Q4 2011.

Physical iron ore trading is now a riskybusiness and the development of riskmanagement tools is welcome by many participants.

Trading Iron Ore: An in-depth and independentanalysis of the iron ore trading market and how itcould evolve includes:

l Iron ore physical flows;

l Current status of the financial market;

l In-depth analysis and comparison of themethodologies of the three main indicestraded so far;

l A detailed review of the exchanges mostactive in the current market;

l Analysis of alternative products in development;

l Our views on the development of themarket over the next five years;

l Detailed information about the mostsignificant companies involved in iron orefinancial trading today;

– Physical iron ore traders– International investment banks– International iron ore consumers– International iron ore producers

NEW

Trading Iron Ore: An in-depth and independent analysisof the iron ore trading market and how it could evolve

Section 1: Iron ore physical market When starting to trade a financial commodity you simplycannot ignore the physical market as physical supply/demandis the ultimate driver for iron ore dynamics.

l Iron ore international supply/demand analysis

l History and evolution of the main exporting and importing countries

l Analysis of the main flows and evolution including detailed maps

Section 2: The current status of the iron orefinancial market lMarket development since 2008

l Background to the iron ore benchmarking system and reasonsfor its eventual collapse

lWhy the ‘Quarterly in arrears less one month’ pricing system or‘QALOM’ didn’t last?

l Historical trading volumes of iron ore swaps from 2008 to the present with estimated split between bilateral and tradingon exchange

l How do iron ore swaps volumes compare in their first three years of existence with coal, freight, aluminium, oil and CO2 emissions?

l Summary of methodologies of the three main indices andcomparison of historical prices. Spread analysis

l Estimated historical trading volumes for each index and market share

l The critical role of exchanges and clearing houses

l Summary of the main exchanges and clearing houses involved in iron ore today. Historical volumes and evolution ofmarket share

lMarket structure: main principals and brokers active in themarket today

l The very different approach from different categories of principals

Section 3: Detailed analysis of themethodologies of the three main iron oreindices and comparison This section provides a detailed methodology of the threemain current indices and gives a neutral assessment of theirstrengths and potential weaknesses. It also provides acomparison based on the interviews conducted.

l Summary of the main physical and chemical parametersdefining iron ore and their importance

l Detailed analysis of the methodology of MBIO, TSI and IODEX indices

l Tables comparing the main characteristics of the three indices

Section 4: Detailed analysis of the exchangesinvolved today in iron ore trading Clearing facilities are now a pre-requisite for all financialinstruments. Iron ore swaps are no exception which explainswhy already six exchanges and clearing houses havereferenced the three iron ore indices. We examine in detail inthis section the different products offered and the evolution ofthe activity for each exchange. We also give our views on thepotential evolution.

l Introduction and background information for the mainexchanges and clearing houses

l Tables summarizing the specifications of each contract

l Evolution of trading volumes

l Strength and weaknesses and potential developments

This study is split into seven key parts offering expertanalysis and independent guidance including:

To order please call the hotline +44 (0) 20 7779 8000 or email marketing@metalbulletinresearch.com

Section 5: New products in developments Many participants we interviewed estimate the iron oremarket is not fully matured yet. This means that the mostactively contracts traded today may not be the definitive one.This section examines alternative indices and contracts thatare in development worldwide and we give our opinion fortheir chances of success.

l Detailed analysis of alternative iron ore indices in development worldwide

l Feasibility of physical trading platforms and physical futuresversus financial swaps

Section 6: Discussion and outlook for the ironore market in the next five years l Our views on which financial product could become thereference for iron ore trading

l Our estimate of trading volumes for the next five years based on the latest developments and comparison with other commodities

l The possibility of developing other trading methods

lWe discuss the potential over-reliability of iron ore derivativeson the Chinese economy and the potential impact of afinancial bubble bursting in China or the Far East

l Could other countries use the exiting tools as a proxy tomanage their own risks?

l Is further consolidation possible in the iron ore market andwhat is the potential impact on financial trading?

l How iron ore financial trading could interact and develop withfreight and steel financial trading?

Section 7: Company profilesThis section details the most active principals and brokers infinancial iron ore trading by early 2012.

l Summary of each participant’s activity as a whole

l Specific information (where applicable) on each participant’sactivity in iron ore derivatives and physical trading

MBIO annualised volatility – %

Market share main exchanges, iron ore swaps – %

Source: MBR

100%90%80%70%60%50%40%30%20%10%0%

Apr‘09

Jun‘09

Aug‘09

Oct‘09

Dec‘09

Feb‘10

Apr‘10

Jun‘10

Aug‘10

Oct‘10

Dec‘10

Feb‘11

Apr‘11

Jun‘11

Aug‘11

Oct‘11

Dec‘11

SGX CME SMX LCH Clearnet NOSASA

Source: MBR

70%

60%

50%

40%

30%

20%

10%

0%

1 Jun ‘09

29 Jun ‘09

25 Sep ‘09

24 Nov ‘09

21 Jan ‘09

22 Mar ‘10

19 May ‘10

16 Jul ‘10

14 Sep ‘10

11 Nov ‘10

10 Jan ‘11

9 Mar ‘11

6 May ‘11

5 Jul ‘11

1 Sep ‘11

31 Oct ‘11

28 Dec ‘11

5 days rolling 10 days rolling 20 days rolling

www.metalbulletinresearch.com

NEW

Biographies of authorsBrian Levich Brian is Metal Bulletin Research’s Head of Research andspecialises in the steel and steel raw material sectors. He haswritten and oversees numerous newsletters, quarterlies andstudies on the global steel industry and has done extensiveconsultancy and market research for a number of steelproducers, consumers and financial institutions.

Derek NewportDerek Newport has been working for a period of six months inthe production of this study. Derek was previously marketmanager – physical iron ore broker for the physical tradingplatform globalORE.

Guillaume Perret Guillaume Perret has sixteen years’ extensive experience in coaland dry commodities trading. Mr. Perret spent five years withRWE in London, setting up and developing the coal and freighttrading desk, and five years with Louis Dreyfus Négoce in Paris,trading international grains and chartering physical vessels. MrPerret is also the course director of “Iron Ore Trading and RiskManagement” and “Coal Trading and Risk Management”courses. He is the author of: “The International Coal TradingMarket 2010-11”, “The International Dry Freight Market” and co-author of “Trading Iron Ore: a full feasibility study for anew derivatives contract”.

Please call the hotline +44 (0) 20 7779 8000 or email marketing@metalbulletinresearch.comto request complimentary sample pages

Trading Iron Ore: An in-depth and independentanalysis of the iron ore trading market and how itcould evolve is an insightful market studyproviding a detailed analysis of the current statusof the physical and financial iron ore market, andhow it could evolve over the next five years.Trading Iron Ore study is based on the extensive database andin-depth knowledge of the industry from Metal Bulletin Research.

The authors have also conducted more than 60 in-depthinterviews with significant producers, end users, traders,brokers, exchanges and financial institutions that are or couldbecome significant participants in the physical and financial ironore markets.

Metal Bulletin Research have written this study with PerretAssociates. Guillaume Perret has been involved in the “new” ironore market since its launch in 2008, amongst others through aseries of reports and regular intensive training courses which givehim direct access to high caliber participants in the market.

The study is designed as an indispensable tool for the benefit ofiron ore physical and financial traders, risk managers, operationsor back office representatives. They will find useful to have itavailable for reference when they trade or contemplate enteringthis market.

This study is required reading for all industryprofessionals that are trading physical orfinancial iron ore, or contemplating enteringinto this market:

lMining companies

l Steel producers both in the long and flat markets

l Trading companies either already active in physical ironore trading or other commodities

l Banks

l Hedge funds

l Financial institutions involved in long-term mininginvestments and interested in protecting the value of their assets

l Brokers, exchanges and clearing houses already active orwilling to enter the market

l Consultants and analysts involved in the commodity sector

ROW $5,580 UK £3,495 Europe €4,170

For more information please visit www.metalbulletinresearch.com or call +44 (0) 20 7779 8000or email marketing@metalbulletinresearch.com

Other relevant Metal Bulletin Research publications include:• A New Age for Steel Metallics: A Global Market Outlook to 2020for Iron Ore, Scrap, DRI/HBI and Pig Iron

• Global Iron Ore Cost Service• Global Steel Cost Service• Steel Raw Materials: Weekly Market Tracker• Steel: Weekly Market Tracker • A Ten Year Strategic Outlook for the Metallurgical Coal Industry• A Ten Year Strategic Outlook for the Coke Industry

• A Strategic Market Review and Outlook for the Middle East andNorth African Steel Industry to 2020

• The New China Effect: China’s Steel & Raw Materials Industries &their Global Impact

• The Indian Steel Industry: Market Projections & CompanyStrategies out to 2015

• The Merchant Slab Market Strategic Outlook to 2020• The Five Year Outlook for the Global OCTG Industry• A Ten Year Strategic Outlook for the Global Iron Ore Industry

FIVE EASY WAYS TO ORDERTel: +44 (0) 20 7779 8000Fax: +44 (0) 20 7779 8090E-mail: marketing@metalbulletinresearch.comOnline: www.metalbulletinstore.comMail: Metal Bulletin Research Special Reports, TDS,

Pegasus Drive, Stratton Business Park, Biggleswade,Bedfordshire SG18 8TQ, UK

If you have any questions you can also contact your regional office

Customers in Asia please contact:Tel: +61 3 5229 5445E-mail: marketing@metalbulletinresearch.com

Customers in North America please contact:Tel: +1 (212) 224 3577Fax: +1 (212) 224 3671

Family Name

Mr/Miss/Mrs/Ms/Dr

First/Given Name

E-mail

Company Name

Job Title

Address

Post/Zip Code

Country

Tel +( )

Fax +( )

Use of your informationThe information you provide on this form will be used by Euromoney Institutional Investor PLC and its group companies (“we” or“us”) to process your order and/or deliver relevant products/services and content. We may also monitor your use of our website(s),including information you post and actions you take, to improve our services to you and track compliance with our terms of use.Except to the extent you indicate your objection below, we may also use your data (including data obtained from monitoring) (a) tokeep you informed of our products and services; (b) occasionally to allow companies outside our group to contact you with detailsof their products/services; or (c) for our journalists to contact you for research purposes. As an international group, we may transfer your data on a global basis for the purposes indicated above, including to countries whichmay not provide the same level of protection to personal data as within the European Union.By submitting your details, you will be indicating your consent to the use of your data as identified above. Further information on ouruse of your personal data is set out in our privacy policy, which is available at www.euromoneyplc.com or can be provided to youseparately upon request.Marketing choicesIf you object to contact as identified above by telephone q, fax q, or email q, or post q, please tick the relevant box. If you do notwant us to share your information with our journalists q, or other companies q please tick the relevant box.

www.metalbulletinresearch.com

YOUR COMPANY TYPERaw Material Supply (0003)Metal/Steel Production/Processing (0027)Fabrication/Manufacturing(0055)Distribution (0095)Services/Products for theIndustry (0111)End-User Sector (0167)

Finance Companies (0271)Production (0275)Processing & Equipment (0279)Trading (0287)Transport – Ports (0291)Non-Ferrous Foundry (0303)Extruding (0311)Other Primary Metal Products(0315)

Ferrous Traders (0319)Non-Ferrous Traders (0323)Resource/Asset Recovery(0327)Library/Research (0321)Trade Association (0525)Legal/Regulations (0155)Government (0253)

YOUR METALS INTERESTBase Metals (11001)Aluminium (11002)Downstream Aluminium (11157)Precious Metals (11160)Minor Metal (11267)Light Metals (11360)Steel (12001)

Steel Tube & Pipe – Seamless(12042)Steel Tube & Pipe – Welded(12043)Stainless Steel (12159)Steel Wire (12230)Galvanising & Coated Coil(12226)

Ferro Alloys (13000)Scrap & Secondary Metals(14000)Steelmaking Raw Materials(12231)Iron Ore (12232)

DATA PROTECTION NOTICE

PROMO CODE

Study published April 2012

Yes I would like to order

Trading Iron Ore: An in-depth and independent analysis of the iron ore tradingmarket and how it could evolvePlease select:

I wish to pay by the following method (please tick appropriate box):

CREDIT CARD – I wish to pay by credit card.Please call the Metal Bulletin Research hotline on +44 (0) 20 7779 8000.Please do not fax or email credit card details.

INVOICE – Please invoice me for US$/£/€ ______________I understand my report will not be sent until the invoice hasbeen paid.

CHEQUE – I enclose a cheque for US$/£/€ _____________made payable to Metal Bulletin.

BANK TRANSFER – A bank transfer has beenmade payable to Metal Bulletin for US$/£/€ _____________

Please provide a copy of the transfer document with your order quoting code MBR0090

US$: A/C No. 11474448 Sort Code: 30-12-18SWIFT CODE: LOYDGB2LCTY IBAN number: GB80LOYD30121811474448

£: A/C No. 0900023 Sort Code 30-00-02SWIFT CODE: LOYDGB2LCTY IBAN number: GB86LOYD30000200900023

€: A/C No. 86221460 Sort Code: 30-12-18SWIFT CODE: LOYDGB2LCTY IBAN number: GB80LOYD30121886221460

Lloyds TSB Bank plc, City Office, PO Box 72, Bailey Drive, Gillingham Business Park,Gillingham, Kent, ME8 0LS, UK