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COMMODITY NEWSBRIEFS: 3 NOVEMBER 2014 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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FAST MOVING CONSUMER GOODS BUMPER STONEFRUIT EXPORTS EXPECTED FROM SA (Cargo Info Africa, 3/11/2014) Favourable weather conditions and an expansion of the crop area have ensured a record export of stonefruit from South Africa for the 2014/15 season, reports the German Agrarmarkt Informations-Gesellschaft (AMI) (Agricultural Market Information Service) on its website, according to FreshPlaza.com. First estimates reportedly show that 17.56 million boxes of stonefruit will be exported from South Africa – a 10% increased on last year’s figures. According to FreshPlaza, the South African branch association, Hortgro, expects the strongest export growth in nectarines, where the export volume will increase by 15% to 3.4 million boxes. The export volume for both peaches and plums will be 10% higher than last year. The export volume of peaches will reach 1.7 million boxes and 11.5 million boxes for plums. Only the export of apricots will slightly decrease (-1%), and reach approximately 960 000 boxes. INDUSTRIAL SOUTH AFRICA'S TRADE DEFICIT NARROWS TO R2.91BN IN SEPTEMBER (Engineering News, 3/11/2014) The shortfall on South Africa's trade account narrowed sharply to R2.91-billion in September from a revised R16.75-billion in August, as the import bill nearly matched that of exports, data from the revenue service showed on Friday. Exports in September rose by 18.2% to R90.79-billion and imports by 0.2% to R93.71-billion. The September data brings the cumulative deficit for the year to R73.74-billion, compared with a R63.07-billion gap over the same period in 2013. STEEL SEIFSA UNVEILS INDABA AS PART OF STEEL, ENGINEERING REVIVAL PLAN (Engineering News, 3/11/2014) The Steel and Engineering Industries Federation of Southern Africa (Seifsa) announced on Friday that it would host a high-level Metals and Engineering Indaba in Gauteng next May as part of efforts to revive the fortunes of the important, yet embattled, manufacturing subsector. Lamenting the decline in manufacturing’s economic contribution from over 20% of gross domestic product in 1983 to only 16% in 2013, CEO Kaizer Nyatsumba said the conference would bring together business owners, trade unionists and policymakers from across the Southern African Development Community (SADC) to deliberate on turnaround strategies. Invitations have been extended to Trade and Industry Ministers from across the SADC region and

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South Africa’s Minister, Dr Rob Davies, had already indicated his eagerness to participate. Captains of industry had also been invited and would participate in panel discussions along with leading economists and trade unionists. COAL WESCOAL SECURES R200M FOR ELANDSPRUIT (MiningMx, 3/11/2014) Wescoal Holdings has raised a R200m in debt the bulk of which will finance the building of its Elandspruit Colliery, a property in the Mpumalanga province that will double Wescoal's run-of-mine coal output to four million tonnes a year (mtpa) by its 2016 financial year. This structure will provide funding for capex and development of our flagship Elandspruit operation," said Andre Bojé, CEO of Wescoal Holdings which has a value on the Johannesburg Stock Exchange of R371m. Investec is the banker. About R110m will be used to commission Elandspruit including the purchase of the Muhanga coal processing plant which is infrastructure on an adjacent property. Boje said previously it was important to buy the plant because it would take 36 months to win regulatory approval from the Department of Mineral Resources for its own plant. Elandspruit Colliery increases our life of mine beyond 15 years and coupled with the Muhanga coal processing plant as well as our established Trading business, Wescoal is a well-rounded coal operation,” said Bojé. The debt facility is somewhat unusual in the South African coal development or junior market where cash flow is non-existent or constrained. As a result, most development companies in coal, such as Universal Coal, Coal of Africa and Continental Coal, to name a few, have opted for equity financing. NON-FERROUS METALS COPPER THEFT RISES TO R13M IN SEPTEMBER (Engineering News, 3/11/2014) Following four months of improvements, the South African Chamber of Commerce and Industry’s (Sacci’s) Copper Theft Barometer increased to R13-milllion in September, up from R12-million the month before. This was the fourth monthly increase in the “relatively volatile” first nine months of the year, with the barometer having been as low as R10.7-million and as high as R15.4-million. “The trend over the past nine months has been a definite setback from the earlier downward trajectory from 2012 to 2013 and suggests that the policy interventions against copper theft need to be ramped up. “The prospect of constrained power supply until early November, as announced by Eskom on Wednesday, adds urgency to the task of ensuring the optimal efficiency of South Africa’s power supply network,” Sacci stated. Meanwhile, the Copper Theft Volume Indicator also increased to 173 t in September, compared with 160 t in August and 158 t in July. Sacci pointed out that the international average monthly spot price of copper had decreased to $6 734/t in October, down from $6 871/t in September and $7 005/t in August. “The movement in the copper price mirrors the weakening in other commodity prices like gold and oil, so the downward copper price trend is typical of a broader global trend,” it added. Meanwhile, South African exports of waste copper products more than halved to $7-million in August, compared with $15.4-million in July and was also down from the $24.6-million exported in June. GENERAL MAJUBA SILO COLLAPSE PUSHES SYSTEM ‘OVER THE EDGE’, SUMMER LOAD-SHEDDING RISK HIGH (Engineering News, 3/11/2014) Electricity utility Eskom confirmed on Sunday that the risk of load shedding had increased materially for the coming week in light of a catastrophic failure of the 10 000 t central coal storage silo at its Majuba power plant at 13:12 on Saturday November 1. The State-owned company also indicated that its full summer plan would need to be reviewed and that spates of load shedding were possible until the end of March 2015, owing to the need to persist with a maintenance catch-up programme during the period. The Majuba station, in Mpumalanga, had been forced to reduce output from over 3 000 MW to around 600 MW, pushing an already constrained power system “over the edge”, and resulting in over 1 000 MW (stage 2) of load being shed on Sunday as part of a reserve restoration exercise designed to stabilise supply ahead of the business week. Nevertheless, there was still a likelihood of ‘stage one’, less than 1 000 MW, of rotational load shedding on Monday between 18:00 and 20:00. That risk would increase by Wednesday once Eskom’s pumped-storage reserves and interruptible loads with the aluminium smelters had been exhausted. As a result, the utility was cautioning that there could be load shedding on Wednesday night and all day on Thursday.

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CURRENCIES AND PRICES

ALSI: 3 month to 31 Oct 14

(Mail & Guardian, 3/11/2014)

JSE AS AT 17:00PM 31 OCTOBER 2014

All Share Index 31/10 49,723

+ 1,062.44 + 2.18%

Industrials Index 31/10 47,305

+ 1,181.41 + 2.56%

Financials Index 31/10 39,577

+ 984.46 + 2.55%

Top 40 Index 31/10 44,385

+ 1,049.32 + 2.42%

Industrial 25 Index 31/10 60,698

+ 1,672.00 + 2.83%

Financial 15 Index 31/10 15,179

+ 429.14 + 2.91%

Resources 10 Index 31/10 47,169

+ 351.35 + 0.75%

Alt-X Index 31/10 1,324

+ 13.21 + 1.01%

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WORLD INDICATORS

FOREX

Rand/Dollar 06:33 11.0803

+ 0.22 + 1.99%

Rand/Pound

06:30 17.6525

+ 0.29 + 1.69%

Rand/Euro 06:35 13.8226

+ 0.12 + 0.84%

COMMODITIES

Gold (usd/oz) 06:33 1,169.46

- 30.34 - 2.53%

Platinum (usd/oz)

06:33 1,230.25

+ 3.25 + 0.26%

Brent (usd/barrel) 06:30 85.70

- 0.54 - 0.63%

WORLD MARKETS

Wall St (DJIA) 31/10 17,391

+ 195.10 + 1.13%

Germany (DAX)

31/10 9,327

+ 244.06 + 2.69%

Japan (Nikkei) 31/10 16,414

+ 755.56 + 4.83%

(Business Report, 3/11/2014) COPPER A – SETTLEMENT PRICE – 6835, 5 FORWARD RATES - Dollar/rand 4pm close: 11, 0225

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Petrol/ Diesel Price

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

95 ULP (c/l) 1320.00 1359.00 1395.00 1398.00 1383.00 1361.00 1392.00 1392.00 1325.00 1320.00

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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

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

Illuminating Paraffin (c/l) 963.828 975.828 991.828 953.028 934.028 924.028 947.028 940.028 921.028 907.028

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

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

93 ULP (c/l) 1336.00 1375.00 1411.00 1416.00 1401.00 1379.00 1408.00 1408.00 1341.00 1343.00

95 ULP (c/l) 1357.00 1396.00 1432.00 1439.00 1424.00 1402.00 1433.00 1433.00 1366.00 1361.00

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

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

Illuminating Paraffin (c/l) 1009.728 1021.728 1037.728 1003.228 984.228 974.228 997.228 990.228 971.228 957.228

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

YR2013

02-Jan-

13

06-Feb-

13

06-Mar-

13

03-Apr-

13

01-May-

13

05-Jun-

13

03-Jul-

13

07-Aug-

13

04-Sep-

13

02-Oct-

13

06-Nov-

13

04-Dec-

13

COASTAL

95 LRP (c/l) 1151.00 1192.00 1273.00 1283.00 1210.00 1202.00 1286.00 1318.00 1313.00 1293.00 1265.00 1282.00

95 ULP (c/l) 1151.00 1192.00 1273.00 1283.00 1210.00 1202.00 1286.00 1318.00 1313.00 1293.00 1265.00 1282.00

Diesel 0.05% (c/l) 1086.67 1104.47 1162.85 1170.01 1114.45 1110.47 1188.67 1221.63 1235.45 1233.45 1218.25 1228.37

Diesel 0.005% (c/l) 1091.07 1108.87 1167.25 1175.41 1118.85 1114.87 1193.07 1226.03 1240.85 1238.85 1221.65 1231.77

Illuminating Paraffin (c/l) 807.128 833.128 890.128 860.328 802.328 803.328 878.328 903.328 928.328 924.328 908.328 924.828

Liquefied Petroleum Gas

(c/kg) 2047.00 2120.00 2238.00 2183.00 2102.00 2107.00 2236.00 2258.00 2267.00 2227.00 2186.00 2204.00

GAUTENG

93 LRP (c/l) 1165.00 1206.00 1287.00 1297.00 1224.00 1216.00 1300.00 1332.00 1327.00 1308.00 1280.00 1297.00

93 ULP (c/l) 1165.00 1206.00 1287.00 1297.00 1224.00 1216.00 1300.00 1332.00 1327.00 1308.00 1280.00 1297.00

95 ULP (c/l) 1186.00 1227.00 1308.00 1320.00 1247.00 1239.00 1323.00 1355.00 1350.00 1330.00 1302.00 1319.00

Diesel 0.05% (c/l) 1111.37 1129.17 1187.55 1196.61 1141.05 1137.07 1215.27 1248.23 1262.05 1260.05 1244.85 1254.97

Diesel 0.005% (c/l) 1115.77 1133.57 1191.95 1202.01 1145.45 1141.47 1219.67 1252.63 1267.45 1265.45 1248.25 1258.37

Illuminating Paraffin (c/l) 849.028 875.028 932.028 906.228 848.228 849.228 924.228 949.228 974.228 970.228 954.228 970.728

Liquefied Petroleum Gas

(c/kg) 2229.00 2302.00 2420.00 2365.00 2284.00 2289.00 2418.00 2440.00 2449.00 2409.00 2368.00 2386.00

(SAPIA online)

Daily prices for 31 October 2014

LME Official Prices, US$ per tonne

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Contract Aluminium Alloy Aluminium Copper Lead Nickel Tin Zinc NASAAC

Cash Buyer 2075.00 2056.50 6834.50 2014.50 15810.00 20100.00 2334.50 2145.00

Cash Seller & Settlement 2085.00 2057.00 6835.50 2015.00 15815.00 20125.00 2335.00 2145.50

3-months Buyer 2080.00 2036.00 6765.00 2023.00 15890.00 20100.00 2323.00 2180.00

3-months Seller 2090.00 2036.50 6770.00 2024.00 15900.00 20105.00 2323.50 2190.00

Dec 1 Buyer 2080.00 2053.00 6710.00 2050.00 15970.00 2338.00 2220.00

Dec 1 Seller 2090.00 2058.00 6720.00 2055.00 16070.00 2343.00 2230.00

15-months Buyer 20125.00

15-months Seller 20175.00

Dec 2 Buyer 2078.00 6660.00 2072.00 15845.00 2323.00

Dec 2 Seller 2083.00 6670.00 2077.00 15945.00 2328.00

Dec 3 Buyer 2115.00 6605.00 2082.00 15635.00 2298.00

Dec 3 Seller 2120.00 6615.00 2087.00 15735.00 2303.00

(London Metal Exchange, 3/11/2014)

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