Year-on-year comparisons for TSI's Asian benchmark prices (iron ore, metallurgical coal, asean HRC).

1. TSI Benchmarks are defined as having physical supply linked to them,
and/or derivative contracts. These three indices meet both criteria.
Year-on-year comparisons show a marked price retreat (May to-date 2015 vs May 2014).
Tempered Chinese demand is affecting prices, but so is burgeoning supply.
Key TSI Benchmark prices down
May
‘15
TD*
May ’14*
-50
-40
-30
-20
-10
0
TSI Australia FOB Coking Coal TSI ASEAN CFR HRC TSI 62% Iron Ore
117.02
86.21
546.65
378.57
100.56
60.19
US$/t US$/dmtUS$/t%
*Monthly averages

2. Source: Australian Bureau of statistics Source: China Customs Data
2
3
4
5
6
7
8
2013 2014 2015
January February March
10
11
12
13
14
15
16
17
2013 2014 2015
January February March
Australian Metallurgical Coal Exports Chinese Metallurgical Coal Imports
MillionTonnes
MillionTonnes
Supply and demand in key producing and consuming nations are heading in different directions
Coking coal supply/demand mismatch
Prices are a function of supply and demand. Weakness in coking coal prices recently are
highly explicable when viewing 3 year trends on production levels and consumption levels.
A demand pick-up in China is anticipated, but will it reverse a hitherto structural trend?
Source: Australian Bureau of statistics Source: China Customs Data