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COMMODITY NEWSBRIEFS: 6 JULY 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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INTERMODAL PORT OF SALDANHA SET TO UNLOCK R13BN WORTH OF INVESTMENT OPPORTUNITIES (Engineering News, 6/7/2015) The Port of Saldanha would present investors with investment opportunities in excess of R13-billion over the next five years, business leadership organisation Accelerate Cape Town announced at its July Thought Leadership session. Feasibility studies are already under way and the first contract will be put out to tender by end-2015, the company said in a statement. “Transnet National Ports Authority (TNPA) has called on the private sector to join it in turning the port’s economic potential into reality,” read the statement. “As a State owned entity – and with all the other priorities that government faces – we have realised that we can no longer invest in everything. As a result we are inviting the private sector, including foreign investors, to invest in the initiatives planned for the Port of Saldanha. The R13-billion is made up of three key projects: an offshore oil and gas supply base; a dedicated rig repair berth; and an extension to the old Mossgas repair jetty,” said TNPA GM: strategy Nico Walters. Wesgro CEO Tim Harris welcomed the TNPA announcement as one that would strengthen the Cape’s position as a key business destination in Africa. Describing ports as levers of growth, Harris acknowledged the TNPA’s collaborative approach with the private sector to help establish the region as a major transport and logistics hub. “Already, 54 out of 98 (almost 59%) of the international companies that have invested in Cape Town have done so to access the African market. Exports from the Western Cape totalled R74.87-billion in 2013, an increase of 16%, while Western Cape ports – including Cape Town, Saldanha and Mossel Bay – handle 20% to 30% (5 904 t in February 2014) of the cargo in South Africa,” said Harris. INDUSTRIAL SOUTH AFRICA'S PRIVATE-SECTOR ACTIVITY FALLS IN JUNE TO 11-MONTH LOW – PMI (Engineering News, 6/7/2015) Output and new orders in South Africa's private sector declined at their sharpest rates in nearly a year as the economy weakened and demand subsided, a survey showed on Friday. South Africa's Standard Bank Purchasing Managers' Index (PMI) fell to 49.2 in June from 50.1 in May, its lowest reading in 11 months. Companies surveyed signalled they were cautious about their stock policies as activity contracted for the first time since January. New export orders continued to decrease, albeit at a slower rate than May's ten-month record. "The growth outlook for South Africa remains lacklustre as a combination of declining order intakes and falling purchasing activity suggests that the sector is likely to remain stuck in

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reverse gear," said Oliver Kolodseike, an economist at Markit. "Exchange rate factors, rising fuel prices and increasing staff costs meanwhile continued to exert upward pressure on overall input costs," Kolodseike said. IRON STOCKS SLIDE, KUMBA BOOKS BIGGEST DROP IN 10 WEEKS (Moneyweb, 6/7/2015) South African shares slid on Friday with Kumba Iron Ore dipping to its lowest level in 10 weeks after a slump in iron ore futures. Producers of the raw material suffered as Chinese iron ore futures dropped for the sixth consecutive day. Kumba Iron Ore closed 5.7% lower at R132.49 as African Rainbow Minerals and Assore both slumped to their lowest levels in over 6 years, down 2% and 5.2% respectively. Exxaro shares fell 2.8% to R80, also hitting a 6-year low for the company. “It’s quite volatile and you are getting some people that might be coming in here doing a bit of bargain-hunting buying,” said Ferdi Heyneke, a portfolio manager at Afrifocus Securities. “The underlying prices of iron ore, copper and things like that need to turn and we need to see the demand and supply fundamentals turn around before the cycle can turn.” METALS INVESTORS LOOK FOR MINERS TO CUT SUPPLIES TO LIFT PRICES (Mining Weekly, 6/7/2015) Investors in industrial metals will keep a close watch on miners' results in coming weeks for possible announcements of production cutbacks that could bolster weak prices. "What will be very important over the next few weeks is whether we start to see some supply responses emerging during the corporate results period," said Nicholas Snowdon, metals analyst at Standard Chartered in London. Iron ore, aluminium and zinc will get the most attention after a slide in prices that is pressuring the bottom line of some mining groups. Spot iron-ore shed more than half of its value in the 12 months to April, but has since rebounded by about 15% to $54.10 a tonne "Over the past six months Vale, BHP and Rio have independently suggested either cuts to existing production, holding back sales and/or the slower ramp up of growth volumes," Citi analyst Heath Jansen said in a note. "Stronger guidance from the companies on volumes could potentially drive lower volatility in the iron-ore price." On April 30, Brazil's Vale, the world's top iron-ore producer, said it was considering reducing forecast iron-ore production by up to 30 million tonnes over the next two years. Rio Tinto is the second-biggest producer of the raw material for making steel while BHP Billiton is number three. Among base metals, the main focus will be on aluminium and zinc, analysts said. "Aluminium tops the list in terms of potential and much needed production cuts in the Western world. Also in the zinc market, we're seeing zinc mine production growing at the fastest pace in several years," Snowdon said. Top producer Rusal of Russia said in April it might idle 200 000 tonnes of capacity while US group Alcoa said the month before it was reviewing 500 000 tonnes of smelting capacity. On Tuesday, Alcoa said it would permanently close its Pocos de Caldas smelter in Brazil, which has capacity of just below 100 000 tonnes per year. Nickel is another candidate after prices on the London Metal Exchange slumped this week to a six-year low of $10,795 a tonne, down by nearly half from a peak last year. "We are deep into the all-in cost curves for metals, with maybe the exception of copper," said Robin Bhar, head of metals research at Societe Generale in London. FUEL ENGEN REFINERY TO UNDERGO 3-DAY MAINTENANCE SHUTDOWN (Engineering News, 6/7/2015) South Africa’s second-largest oil refinery, Engen Refinery (Enref), is set to undergo a three-day planned maintenance outage from July 9 as part of an ongoing maintenance programme to ensure that the facility, which delivers a significant portion of South Africa’s fuel requirements, continues to operate safely and reliably. The plant, which processed up to 125 000 bbl/d of crude oil, had a wide product pallet that included automotive, industrial, aviation and marine fuels, bitumen and lubricants, a range of chemicals and solvents. Enref GM Jehan Zaib said in a statement that routine maintenance shutdowns were essential in ensuring security of supply of product for South Africa. OIL PRICES DROP AMID HIGH US OUTPUT (iAfrica, 6/7/2015) Oil prices fell on Friday with the focus on high US output as traders looked ahead to Greece's weekend referendum that could determine whether it remains in the eurozone. West Texas Intermediate for August delivery fell 35 cents to $56.58 a barrel compared with Thursday's close. Brent North Sea crude for August dropped 44 cents to stand at $61.63 a barrel in London afternoon deals. Traders are worried about a global supply glut and the first rise in the US oil-rig count this year. Oil prices had meanwhile slumped midweek as the US government revealed a surprise weekly build of 2.4 million barrels for the country's commercial crude inventories. Saxo Bank analyst Ole Hansen added Friday that the US situation combined with

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"OPEC producing the most since 2012... leaves the upside potential for crude oil (prices) still very limited". There are concerns also over a return to the market of Iranian crude. Talks between six world powers and Iran aimed at curbing the country's nuclear ambitions were this week handed a deadline extension to July 7. NON-FERROUS METALS METALS TUMBLE AS GREEK VOTE, CHINA MEASURES SIGNAL DEMAND RISKS (Mineweb, 6/7/2015) Industrial metals fell as Greece’s vote against austerity and moves by China to halt the collapse of domestic equities raised speculation that economic growth may falter and weaken demand. Nickel dropped as much as 2.3% and copper lost as much as 1.9%. Sixty-one percent of voters backed Prime Minister Alexis Tsipras’s rejection of further spending cuts and tax increases demanded by creditors. China, the world’s largest metals consumer, suspended initial public offerings and brokerages pledged to buy shares in measures aimed at halting the steepest three-week plunge in stocks since 1992. All metals fell on the London Metal Exchange. “The vote result from Greece was a body blow to metals,” Xu Yongqi, a senior analyst at Guotai & Junan Futures Co., said by phone from Shanghai. An index of the six main metals on the LME has fallen more than 10% this year as Greece’s potential exit from the euro and China’s cooling economy damped sentiment for global expansion and stoked speculation demand for industrial metals would slow. The Shanghai Composite Index rose as much as 7.8% on Monday in reaction to the new measures following a 29% collapse in the last three weeks. “The China risk now looks to be becoming a bigger issue than Greece,” Will Yun, commodities analysts at Hyundai Futures Corp., said by phone from Seoul. “The situation in China is a bit worrisome as the issue now is the stock bubble on top of cooling demand.” Nickel for delivery in three months on the LME was down 1.8% at $11,780 a ton at 10:49 a.m. in Hong Kong. Prices are heading for the lowest close since April 2009. Copper in London slid 1.7% to $5,660 a ton ($2.57 a pound). The metal for September delivery in Shanghai declined 2.7% to 41,250 yuan ($6,645) a ton. Futures for the same month in New York dropped 2.3% from their July 2 close to $2.5705 a pound. There was no trading on Friday because of the Independence Day holiday in the US See article “METALS INVESTORS LOOK FOR MINERS TO CUT SUPPLIES TO LIFT PRICES” under heading IRON CURRENCIES AND PRICES

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ALSI: 3 mnth to 3 Jul 15

(Mail & Guardian, 6/7/2015)

JSE AS AT 17:01PM 3 JULY 2015

All Share Index 3/07 51,967

- 248.39 - 0.48%

Industrials Index 3/07 44,769

+ 39.10 + 0.09%

Financials Index 3/07 43,856

- 0.97 - 0.002%

Top 40 Index 3/07 46,356

- 272.17 - 0.58%

Industrial 25 Index 3/07 67,133

- 430.72 - 0.64%

Financial 15 Index 3/07 16,621

- 3.86 - 0.02%

Resources 10 Index 3/07 38,669

- 402.98 - 1.03%

Alt-X Index 3/07 1,327

+ 4.79 + 0.36%

WORLD INDICATORS

FOREX

Rand/Dollar 06:36 12.3666

+ 0.12 + 1.02%

Rand/Pound

06:40 19.2022

+ 0.13 + 0.70%

Rand/Euro 06:40 13.6439

+ 0.07 + 0.54%

COMMODITIES

Gold (usd/oz) 06:36 1,168.43

- 0.87 - 0.07%

Platinum (usd/oz)

06:36 1,074.90

- 7.10 - 0.66%

Brent (usd/barrel) 06:33 59.56

- 2.51 - 4.04%

WORLD MARKETS

Wall St (DJIA) 2/07 17,730

- 27.80 - 0.16%

Germany (DAX)

3/07 11,058

- 122.11 - 1.09%

Japan (Nikkei) 06:36 20,087

- 453.21 - 2.21%

(Business Report, 6/7/2015)

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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

95 ULP (c/l) 1083.00 990.00 1086.00 1246.00 1246.00 1293.00

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Diesel 0.05% (c/l) 997.49 895.49 969.49 1090.09 1085.09 1134.09

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

Illuminating Paraffin (c/l) 697.728 595.728 668.728 690.828 685.828 727.828

Liquefied Petroleum Gas

(c/kg) 1829.00 1679.00 1833.00 1918.00 1935.00 2035.00

GAUTENG

93 LRP (c/l) 1102.00 1009.00 1105.00 1261.00 1261.00 1308.00

93 ULP (c/l) 1102.00 1009.00 1105.00 1261.00 1261.00 1308.00

95 ULP (c/l) 1124.00 1031.00 1127.00 1289.00 1289.00 1336.00

Diesel 0.05% (c/l) 1028.09 926.09 1000.09 1122.79 1117.79 1166.79

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

Illuminating Paraffin (c/l) 747.928 645.928 718.928 743.828 738.828 780.828

Liquefied Petroleum Gas

(c/kg) 2011.00 1861.00 2015.00 2100.00 2117.00 2217.00

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 3 July 2015

LME Official Prices, US$ per tonne

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Contract Aluminium Alloy Aluminium Copper Lead Nickel Tin Zinc NASAAC

Cash Buyer 1760.00 1684.50 5761.00 1755.00 12045.00 14150.00 2012.00 1745.00

Cash Seller & Settlement 1770.00 1685.00 5761.50 1756.00 12050.00 14175.00 2013.00 1755.00

3-months Buyer 1775.00 1722.50 5778.00 1770.00 12025.00 14150.00 2020.50 1770.00

3-months Seller 1785.00 1723.00 5780.00 1771.00 12050.00 14175.00 2021.00 1780.00

15-months Buyer 14170.00

15-months Seller 14220.00

Dec 1 Buyer 1775.00 1778.00 5825.00 1795.00 12175.00 2045.00 1835.00

Dec 1 Seller 1785.00 1783.00 5835.00 1800.00 12275.00 2050.00 1845.00

Dec 2 Buyer 1835.00 5855.00 1817.00 12275.00 2055.00

Dec 2 Seller 1840.00 5865.00 1822.00 12375.00 2060.00

Dec 3 Buyer 1900.00 5875.00 1835.00 12275.00 2045.00

Dec 3 Seller 1905.00 5885.00 1840.00 12375.00 2050.00

(London Metal Exchange, 6/7/2015)

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