The freight of iron ore from the hottest vale ship

2022-08-11
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Vale large ships curve to land and enter China, and the freight of iron ore can be halved

vale large ships curve to land and enter China, and the freight of iron ore can be halved

China Construction Machinery Information

after being blocked for many years, Vale, which has always been tough, chose to cooperate with one company of China shipping company 4 loading gantry frame (special configuration), in order to realize the landing of its "large ship" loaded with iron ore in China

on May 21, COSCO and China Merchants ship announced that they planned to purchase 400000 ton VLOC from vale and signed relevant agreements for further cooperation

in 2014, Vale reached a cooperation with Chinese shipowners, signed a 25 year iron ore transportation agreement, and decided to resell its 400000 ton VLOC. However, although this record heavy tonnage ship type was originally born for China, the largest iron ore market, it is still unable to dock directly in China due to policy reasons and the opposition of Chinese ships to better benefit the society and the people. Now, Vale is "curving" its large ship into China by selling VLOC to China

compared with Australian mining giants BHP Billiton and Rio Tinto, Vale in Brazil is far away from Chinese steel mills, and transportation has always been its disadvantage. Yu Chenxiang, an analyst at Mysteel import mine, analyzed that compared with 170000 and 180000 ton ship types, once the 400000 ton ship officially lands, it is not a problem that the freight of Vale iron ore into China will be reduced by half. At the same time, 2. Overall requirements, the domestic iron concentrate market will also be squeezed

purchase of Vale's super large ore ships

COSCO announcement shows that the company signed a contract with vale with China mining transportation, a holding subsidiary established by China shipping development. China mining transportation purchased four super large iron ore transportation ships from its subsidiaries, with a total price of 445million US dollars. COSCO's wholly-owned subsidiary, zhongsan group, holds 51% of the equity of China mining and transportation, and China shipping development holds the remaining 49% of the equity

the announcement of China Merchants ships shows that the company has signed the framework agreement on deepening strategic cooperation with vale. The agreement stipulates that the two sides will further strengthen long-term strategic cooperation in the field of maritime cargo transportation and integrated logistics. The company plans to purchase four existing large ore carriers from vale. In addition, the subsidiary company of China Merchants Steamship will sign a long-term contract with vale, and the specific contract terms will be further discussed

He Hangsheng, editor in chief of the iron and Steel Branch of the business agency, told every analysis that this time vale sold super large ore ships to Chinese shipbuilding enterprises, on the one hand, it was to weaken the influence of the exclusive owner of its large ships, so that Chinese shipbuilding enterprises could have the strength to compete with the international shipping industry, and then obtain the friendly attitude of Chinese shippers, so as to facilitate their development in the Chinese market; On the other hand, when Chinese shipping enterprises have large ships, they must have supporting facilities and ports to facilitate future maintenance and transportation. Therefore, vale can not only earn the cost of technical support, but also promote its own large ship landing plan

the freight of iron ore entering China may be halved

for vale, choosing to cooperate with Chinese shipowners will undoubtedly further improve its disadvantages in transportation costs

Paul gait, an analyst at Sanford C. Bernstein in London, said that in the past five years, the average shipping cost of Vale's ships to China was as high as $23/ton, while the Australian company was only $9/ton

Mi Pengqi, a market analyst at Treasure Island, said that Vale has not had an advantage in competing with Australia for the Chinese market for a long time

FMG, an Australian iron ore producer, said that the minimum cost of iron ore offshore in October 2014 was $29/ton. The reasonable transportation cost from Australia to China is the best weight for the price war of Australian iron ore

Moody's, an international rating agency, predicts that in order to avoid burrs and mold deformation in finished products, the iron ore price will be at the level of $50-70/ton in five years, leaving very little profit space for miners and aviation enterprises

in MI Pengqi's view, the trend of iron ore prices is determined by market supply and demand. Under the situation of oversupply, the mining giants' willingness to reduce production is not strong. On the premise of taking volume and ensuring profits, the cost will be their bottom line of competition

if it is transported by 400000 tons of large ships, the freight of Vale will be greatly halved. Yu Chen said, "in this way, the cost can be basically the same as that of Australia mining"

COSCO announced yesterday that the main goods in the transportation agreement between China mining and Vale are iron ore and manganese ore, with a loading volume of about 6million tons per year

the domestic refined iron powder market is under pressure

in the view of Liu Zhiqiang, a senior analyst at zhuochuang consulting, the cooperation between the two sides can ensure stable market demand for vale. The decline in global ore prices has squeezed the profit margins of the four mining giants. It is very necessary for vale to find a more secure supply under the current profitable situation. For China, it can maintain sufficient iron ore supply and grasp the price dominance. Since last year, the price of iron ore has fallen by more than 50%, and the willingness of the four major mines to reduce production is not strong, and the contradiction between supply and demand in the market is prominent. This cooperation with the world's largest iron ore producer will be the best opportunity for China to grasp the voice of iron ore pricing

talking about the impact of this cooperation, Liu Zhiqiang pointed out that China will increase the demand for vale iron ore, and Vale's operating costs will further decline, which will pose a severe challenge to domestic mines. Vale is the largest producer of iron ore and pellets in the world. At present, domestic refined iron powder is mainly used for pelletizing. The deepening cooperation with vale will squeeze the domestic refined iron powder market

in addition, he Hangsheng said that this cooperation will also intensify market competition for domestic shipbuilding enterprises

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