Ann: Dividend Received of A$21 Million, page-22

Market Trend of Import of Ferroalloy as of 15 October 2018
<> Ferro-silicon = The price in China continued rising slightly also after China National Day was over. This was because not only did the spot goods became tight due to decreased production in Ningxia, but also some of the steel mills bought more products for in-hand stocks. Some of the market participants have an anticipation of a price hike due to the possibility that the decreased production in Ulanqab, Inner Mongolia will lead to the increased demand for ferro-silicon. As to the export, the lower price becomes severe due to scarce cheap products, and the lower price is going to be shored up.

In the Japanese domestic market, the price remains almost unchanged from the end of September. This was because the lower price was shored up by scare cheap products as mentioned above, but the upper price didn't move.

As to Russian ferro-silicon, the spot goods are still tight, but the offer for the spot market for shipments in November is submitted in small amounts. The price remains unchanged from the end of September.

As to Malaysian ferro-silicon, the producers (OM Sarawak and Pertama Ferroalloys) focus on the production for long-term contracts and Europe, but the offer price for the spot goods as to the shipments from October to November was submitted. But, no contract for spot goods meant for Japan was made.

<> Silicon Manganese = The price in the Chinese domestic market stopped dropping once at the end of September, but dropped slightly after China National Day was over. The price of Inner Mongolian 6517 product as of October 15 is CNY8,500 to CNY8,600 per ton, down by CNY100 - CNY200 from the end of September. Albeit the producers wish to raise the selling price partly because the price of imported manganese ore as raw materials goes up, the higher price becomes severe for such reasons as (1) Some of the steel mills finished procuring products for October purchase before China National Day, (2) Production in Ningxia made a recovery and (3) Demand in Hebei and its vicinity is weak. However, since the shortage of electricity occurred in Ulan gab, Inner Mongolia as a main production area for silicon manganese at the end of last week, the control on the transmission of electricity has been implemented. The supply of silicon manganese is forecast to be down. No contract meant for Japan was made this time, either.

The price of Indian silicon manganese in U.S. dollar remains almost unchanged from the end of September, which is a result of the fact that many of the customers were reluctant to buy at a high price in addition to Indian rupee becoming weak against US dollar although there was a factor for a price hike like an increase in the price of imported manganese ore. But, the cheap products are going to get scarce.

In Japan, the customer's buying motivation is weak, and the higher price becomes severe, such hints of price going up begin to push the customer as the increase in the price of manganese ore and difficulties in getting cheap products in the production area. The price in the last week's spot market was up by US$0 - US$10 from the end of September.

As to Malaysian silicon manganese, OM Sarawak and Pertama Ferroalloys Sdn. Bhd. are producing, and the price seems to be at the same level as Indian products.