The Middle East and China Recycled Metal Market Analysis China International Recycling Conference & Exhibition 2014 Presented By: Mr. Leo Ma (ALA GROUP) September 24, 2014 Presentation Contents Introduction to ALA Group China – Market Analysis The Middle East – Market Analysis The Way Forward Company background Founded in 1990 Headquarter: Dubai, UAE Network: Around the Globe Products: Copper, Aluminum, Brass, Lead, Zinc, Nickel and SS Affiliates: More About The Renowned Recyclers A well-known name in the Middle East / India / Pakistan with offices and yards in strategic locations of Africa Regions, UK, USA and CIS Exports scrap to these and other Asian countries, including China, Korea, Taiwan, Japan, Thailand and Malaysia Involved in all aspects of trading (processors / importers / traders) More About The Renowned Recyclers Continuously expanding in size Employs state-of-the-art technology Owns smelting recycling copper and lead alloys Deals in ferrous and non-ferrous metals Integrity and Accountability Healthier way of doing business Reliability ALA GROUP High Quality Innovation Accessibility 24x7 We value… China – Market Analysis World vs. China World’s largest consumer of copper, lead, zinc and steel, among other ferrous and non-ferrous metals Current foreign supply dependency of mineral raw materials of copper, Iron ore, lead, and zinc higher than 60%, 50%, 40% and 15% respectively In 2010, China imported 7.21 million tons of nonferrous metals, including 4.36M tons of copper containing scrap and 2.85M tons of aluminum containing scrap Source: Waste and recycling middle east World vs. China China - Operating Environment Infrastructure and mechanisms friendly towards movement of scrap Metal recycling has industry status and formal policies Government is addressing issue of fragmentation in the sector (since setting targets in 12th Five-Year Plan) Resolved towards creating a long-term, sustainable and eco-friendly business model Major metal recycling areas in China Future Outlook China anticipating a much faster scrap utilization growth over the next few years An improving global economy could possibly strengthen end markets for steel and ferrous scrap China will continue to expand its steel and copper capacity, and production of both could grow this supports medium-term scrap demand growth, in addition to a potential increase in scrap utilization at steel mills and copper smelters/fabricators CCIC role in metal scrap trade Over the last 30 years, CCIC has become a comprehensive one-stop service provider for international clients in the fields of quality, safety, health and environmental protection. CCIC has set-up a regional office in the Dubai (UAE) in 2008 and we are proud to be a part of CCIC UAE. We thank them for their efforts during the year and look forward to working together in the future to strengthen the metal recycling sector. Middle East - Market Analysis The Middle East – a rapidly emerging market BIR regional membership second only in size to Europe UAE and Saudi Arabia established as regional centers of activity for the sector Egypt strong opportunity for future growth in demand for steel, though per capita use (95 kilograms) is lower as compared to the world average* ME– factors driving growth of industry Oil and gas investments and its revenues Government spending on local infrastructure Qatar’s FIFA World Cup 2022 Direct foreign investments Focus on industrialization Shorter transit routes to India and China ME– factors driving growth of industry Easy access for traders to meet and trade in the region Excellent aviation network Oil resources Dubai to host Expo 2020, encouraging various new projects and initiatives, driving growth not only in the UAE but the whole of the Middle East ME– factors driving growth of industry Both the UAE and Saudi Arabia have established themselves as regional centers of activity for the sector, with industry sources estimating total volume for the UAE at five million tonnes per annum, closely followed by Saudi Arabia with three million tonnes. The UAE also refines and re-exports some 70,000 to 100,000 tonnes of non-ferrous metals every month, with an annual turnover of US$4.5 billion. Source: 2011 Green Middle East report: https://go-green.ae UAE – Crossroads between east and west A major hub for the global multi-billion dollar scrap metal recycling industry Important recycling events held in Dubai every year to explore more opportunities Recycles 5 million tonnes of scrap metal annually* Strategic location for importing scrap from Africa and Europe refining and re-exporting it within the region, into China, India and Pakistan Cheaper energy prices propelling the trade (aluminum production is very competitive) UAE – Market Trends Domestic finished steel consumption in 2012 was at 8 million mt, down from 10 million mt in 2008 Boost in demand expected in 2015 due to recovery in medium-term for housing, infrastructure, rail network, oil & gas, energy and shipbuilding (Expo 2020 win) UAE – Opportunities Easy banking solutions and tax-free income Boom in construction industry and overall infrastructure development Idea of ‘zero waste’ is pertinent to every industry 4th BMR International Conference we would like to take this opportunity as board members of the BMR, we would like to invite you to attend 4th BMR International Conference, a leading conference on metal recycling organized by Bureau of Middle East Recycling Date City (country): 27 February 2015 - 28 February 2015 Dubai (United Arab Emirates) THANK YOU