The hottest purchase of Brazilian mine by Valin Ba

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China Valin Iron and Steel Group, which lost nearly 2billion last year, officially joined hands with Hong Kong Hongqiao group in mid January to obtain a 15 year iron ore supply and marketing framework agreement. What makes people feel strange is that other domestic steel enterprises that also suffer from iron ore are not interested in Hongqiao group. With Hongqiao set

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Valin Steel Group, which lost nearly 2billion last year, officially "joined hands" with Hong Kong Hongqiao group in mid January and obtained a 15 year iron ore supply and marketing framework agreement. What makes people feel strange is that other domestic steel enterprises that also suffer from iron ore are not interested in Hongqiao group

"there are many problems to be considered in the purchase of ore with Hongqiao group, including the grade of ore and the scale of the mine." Huzhengwu, director of the United Commercial steel plant group, said

On January 17, Hongqiao group announced that the company would supply a balanced supply of no more than 10million tons of iron pellet powder to Valin Iron and steel group or its subsidiaries or their designated receiving units every year from the production date of Sam iron ore in Brazil, for a period of 15 years from the production date. The price of this iron ore will be given a certain discount to Valin steel on the basis of the market price

it is understood that this is also the first time that Hongqiao group has signed a long-term iron ore agreement with domestic steel enterprises since it acquired Sam company in Brazil last year. However, the iron ore price of this cooperation will be lower than the market price, which makes many insiders suspicious

"in the early stage, miners will seek downstream customers in the industrial chain and establish long-term strategic relations. Therefore, they will certainly give a slightly lower price in the early stage. The same was true when the three major mines just cooperated with Chinese steel enterprises." Ma Zhongpu, a professor at the national production experimental machine enterprise seat of Jinan new era Gold Testing Instrument Co., Ltd. of the China Entrepreneur Association, told

"Valin Steel Group signed a long-term contract with Hongqiao group for 15 years at the first time, which is also related to the huge losses within the group last year." An insider said

according to Zhang Meng, an analyst at China United business, Valin steel lost nearly 2billion last year because its holding subsidiary Hunan Iron and Steel Co., Ltd. failed to properly handle the long-term supply relationship with overseas iron ore suppliers and failed to grasp the timing of iron ore procurement in recent years

a person close to Valin steel group said: "this time, we can quickly reach an agreement with Hongqiao group, and there are also reasons why Valin steel group wants to quickly solve its iron ore procurement problems."

the giants are watching

it is understood that after Hongqiao Group acquired Sam company in Brazil, it has repeatedly contacted major domestic steel enterprises, hoping to reach a supply agreement, and invited them to Brazil for on-site investigation, including Baosteel, WISCO, Angang, etc

after the on-the-spot investigation, in addition to reaching an agreement with Valin steel, its chemical composition contains 44.44% carbon, 6.17% hydrogen and 49.39% oxygen, other steel enterprises have not given any information. In the face of such "concessions", why other steel enterprises are moving so slowly, insiders have their own arguments

according to the information, Hongqiao group has signed an agreement with Baosteel Resources Co., Ltd., a subsidiary of Shanghai Baosteel Group, to jointly develop part of the 94 exploration rights of the Brazilian Sam iron ore project, and Baosteel's resource delegation has also gone to Brazil for on-site investigation

in addition, Hongqiao group and Shandong Iron and Steel Group also plan to jointly develop the Brazilian Sam iron ore project

a person close to Baosteel said to: "At present, Baosteel's resources have been basically locked in, and it has signed iron ore supply agreements with the three major mines for up to 5 or 10 years. Therefore, it is not too short of ore, which is also a reason for Baosteel's slow action. On the other hand, it is also related to its scale. Now the water absorption and permeability purchased by Hongqiao group are such. A pair of contradictory mines are still in the exploration period, and there is no clear data on the scale of the mines, so Baosteel will not be concerned about this matter Act too hastily. "

"Angang's own mines account for more than 60% of its total, and there is no shortage of mines on the whole." Hu Zhengwu said, "in terms of cooperating with Hongqiao group to purchase ore, we should consider many issues, including the grade of ore and the scale of the mine. It is reasonable that many steel enterprises are in a wait-and-see state before accurate data are available."

boost domestic enterprises' overseas prospecting

because the international iron ore market is in a state of short supply, the price of iron ore has been high. According to insiders, the impact of international steel prices is not only the rise of international iron ore prices, but also international inflation. Global inflation will catch up with the appreciation of currencies in various countries, and steel prices in various countries will also rise. Until today, steel prices in various countries have been rising

in the face of such a severe situation, the state is also constantly introducing regulatory policies to reduce steel exports to control the situation

mazhongpu said: "it is not enough to just control exports. In the current situation, if the international steel price cannot be stabilized, the iron ore price cannot be stabilized. To solve this problem, we must go out to open mines and build steel plants to meet the needs of local economic development, which not only stabilizes the international steel price, but also meets the growth of international steel demand. In this way, the international layout of Chinese steel enterprises will be solved."

Hongqiao group has issued many invitations since it got the Brazilian mine, only to find downstream buyers as soon as possible. Up to now, although it has achieved little effect, it also indirectly promoted the momentum of domestic enterprises to explore overseas

"it is also a good thing for Chinese capital enterprises to go out and open mines to meet the needs of China's iron ore market." Mazhongpu said

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