Wisco snaps up Venezuelan ore

0 CommentsPrint E-mail China Daily, July 22, 2010
Adjust font size:

Wuhan Iron & Steel Group, China's third-biggest steelmaker, will buy iron ore from Venezuela at a long-term contract price this year, paving the way for a "China Price" separate from what the big three global miners are charging.

The price of iron ore from Corp Venezolana de Guayana (CVG) for 2010 will be $20 per ton lower than what Vale is charging in the third quarter, saving at least 400 million yuan ($59 million) for Wuhan Steel this year, the company said in a statement on its website on Wednesday.

"This is the first-ever contract under the 'China Price' and we hope to apply this to other countries to diversify our resource supplies," said Bai Fang, Wuhan Steel's spokesman.

"The iron ore is 65 percent ore content, and we expect this year's imports from CVG will surpass last year," he said.

Wuhan Steel imported 480,000 tons of iron ore from Venezuela in 2009.

The world's top three miners - Vale, Rio Tinto and BHP Billiton - broke the 40-year tradition of selling iron ore on an annual contract basis this year and opted for a quarterly pricing system.

However, Chinese steel mills prefer to use long-term contracts for iron ore to secure raw material supplies and stabilize costs.

Wuhan Steel and CVG sealed a supply contract in October 2009 to break the monopoly of the big three.

Last October, Wuhan Steel agreed to buy more than 40 million tons of iron ore under a seven-year contract with the Venezuelan company.

The average cost of ore arriving at Wuhan Steel's plants was 668 yuan ($99) per dry ton in 2009, lower than the spot market price, Wuhan Steel said.

CVG, Venezuela's only iron ore producer, had a production capacity of 23 million tons last year.

The South American nation has 4.18 billion tons of proven iron ore reserves, Wuhan Steel said earlier in a statement.

Wuhan Steel has been seeking to invest in more overseas iron ore assets to cut reliance on expensive imports.

"We aim to be self-sufficient in iron ore supplies in three to five years," Deng Qilin, chairman of Wuhan Steel, said in March.

The Wuhan-based company acquired a 21.52 percent stake in Brazilian iron ore mining company, MMX Mineracao e Metalicos SA, for $400 million last year.

The company also received approval from the Australian government for a A$271 million ($249 million) investment in Centrex Metals Ltd in November, and for a 60 percent stake in the iron ore rights of five Centrex projects in South Australia that could contain up to 2 billion tons of resources.

Print E-mail Bookmark and Share

Go to Forum >>0 Comments

No comments.

Add your comments...

  • User Name Required
  • Your Comment
  • Racist, abusive and off-topic comments may be removed by the moderator.
Send your storiesGet more from China.org.cnMobileRSSNewsletter
主站蜘蛛池模板: 伊人222综合| 国产在线精品美女观看| 亚洲综合精品伊人久久| 成人窝窝午夜看片| 国产精品自在线拍国产手机版 | 少妇丰满大乳被男人揉捏视频| 久久久久无码中| 热带雨电影无删减在线播放| 啊灬啊灬别停啊灬用力啊免费看 | 天堂网www在线资源中文| 与子乱勾搭对白在线观看| 欧美在线综合视频| 亚洲酒色1314狠狠做| 精品69久久久久久99| 又大又硬又爽又深免费看| 蜜臀av性久久久久蜜臀aⅴ麻豆| 国产羞羞羞视频在线观看| GOGOGO高清在线观看中文版| 年轻的嫂子在线线观免费观看 | 国产男女在线观看| 伊人一伊人色综合网| 小婷的性放荡日记h交| 中文字幕乱码无码人妻系列蜜桃| 欧美成人免费一区二区| 午夜在线观看视频免费成人| 色狠狠一区二区三区香蕉| 国产又黄又爽胸又大免费视频| 午夜免费1000部| 多人伦精品一区二区三区视频| 一个人看的免费高清视频日本 | 又大又黄又粗又爽视频| 美女被羞羞网站免费下载| 国产a级毛片久久久精品毛片| 蜜臀色欲AV在线播放国产日韩| 国产又大又粗又长免费视频| 2022天天躁夜夜躁西| 女女女女BBBBBB毛片在线| 久久久久免费看成人影片| 日本黄色激情片| 久久精品国产亚洲AV无码麻豆| 最刺激黄a大片免费网站|