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Abraham Lincoln
China Baowu and the world's three largest iron ore suppliers have all settled in RMB
May 12, 2020 15:50 Observer Network
0
Original title: China Baowu and the world's three largest iron ore suppliers have all settled in RMB
[Text / Observer Network Zhou Yuanfang] On May 11, China ’s largest steel group, China Baowu, announced that it had recently completed the first RMB cross-border settlement with the Australian Rio Tinto Group using blockchain technology. The total amount exceeded One hundred million yuan.
The group mentioned that this was another new development following the completion of the first RMB cross-border settlement with Vale in Brazil and BHP Billiton in Australia in January and April this year. So far, China Baowu and the world's three largest iron ore suppliers have achieved RMB cross-border settlement of iron ore transactions.
Reuters website screenshotReuters website screenshot
As early as September last year, the general manager of Dalian Futures Market Wang Fenghai met with representatives of the three major mines. Each mine representative said that he has always paid close attention to the Dalian iron ore futures market and that the futures market is pricing iron ore The function is recognized.
Behind all this is China's huge real economic capabilities, long-term efforts in the construction of RMB commodity futures, and "the landscape is unique" under the global epidemic.
Steel World Site MapSteel World Site Map
Observer Network combed and found that the latest data released by the General Administration of Customs showed that China's total iron ore imports in April were 97.27 million tons, which was 13.22% higher than March's 85.913 million tons and an increase of 20.4% over the same period last year. , A new high for the same period since the record in 2002. In addition, from January to April this year, China's total iron ore imports reached 360 million tons, a year-on-year increase of 5.4%.
The steel industry website Steel World.com reported on May 11 that China ’s steel industry is expected to be affected by the country ’s efforts to prevent and control the new coronary pneumonia epidemic. Demand is further optimistic about overseas mining giants. Ship tracking and port data show that the arrival of iron ore from Brazil increased by 12.7% month-on-month in April, while the number of imported mines from Australia increased slightly by 0.7%.
The China Iron and Steel Association recently published an article to judge that the epidemic situation in Europe, America, Japan and other countries has not improved. Steel production has decreased significantly, the demand for iron ore has declined, and the amount of iron ore resources flowing into China is on the rise. In the later period, iron ore prices are difficult to rise and will show a downward trend of fluctuations.
Once "the pain of pricing power"
Iron ore is the second largest commodity variety in the world after crude oil, and China is the largest purchaser of the variety.
According to Chinese customs data, China imported 1.07 billion tons of iron ore in 2019, the second highest import in history, and also accounted for 50.4% of the total global iron ore output (available for trading) of 2.123 billion tons that year. Industry data during the same period showed that China's crude steel production reached 996 million tons, and its global share rose to 53.3%.
On April 26, the Lange Steel Network analysis pointed out that the global high-quality iron ore resources are mainly distributed in Australia, Brazil, Russia and Africa due to geological reasons. Although China ’s iron ore resources are large, the overall grade of iron ore resources is low. Ore processing costs are higher. For historical reasons, Vale, Rio Tinto, BHP Billiton and FMG have formed a high monopoly on the world's high-quality iron ore resources.
It is worth mentioning that in 2019 alone, the iron ore output of the four major miners totaled nearly half of global output.
Everyone remembers that China has suffered a big loss in iron ore pricing. Since China Baosteel first participated in the global iron ore negotiation pricing mechanism at the end of 2003, iron ore prices have skyrocketed for five consecutive years.
Subsequently, the situation improved step by step.
On October 18, 2013, the Chinese version of the iron ore futures contract was officially listed on the Dalian Commodity Exchange. The price of iron ore went out of the bear market with a wavelength of 26 months, falling from a high of 984 yuan / ton, and hit a minimum price of 282.5 yuan / ton in December 2015, a total decrease of 71.3%.
Dashang's iron ore main contract continuous K line (monthly line)Dashang's iron ore main contract continuous K line (monthly line)
On May 4, 2018, following the launch of RMB crude oil futures on March 26, Dashang Iron Ore Futures officially implemented the introduction of foreign trader business, which became the first time China's listed futures varieties were opened to the outside world. Towards internationalization is also the experience of exploring the internationalization of existing varieties in the futures market.
Taking RMB iron ore and crude oil as the guide, on November 29, 2018, RMB PTA (purified terephthalic acid) futures also embarked on the road to internationalization. This is an important bulk textile raw material, linking the two major petrochemicals and textiles. The pillar industries of the national economy are in the core link of succession and succession in the industry chain.
The upstream raw material is PX (para-xylene), the source is petroleum; the downstream is polyester fiber, polyester bottle flakes and polyester film, and the downstream is the textile and garment industry.
On August 12, 2019, No. 20 rubber (rubber) futures was officially listed and traded at the Shanghai International Energy Exchange, a subsidiary of the Shanghai Futures Exchange, becoming the fourth open futures variety after crude oil, iron ore, and PTA futures.
This product is a kind of natural rubber, which is the main basic raw material for the tire industry. Data show that about 70% of the world's natural rubber is used for tire manufacturing, and about 80% of them use No. 20 rubber.
At present, China is the world's largest consumer of natural rubber, the largest consumer of No. 20 rubber and the largest producer of tires.
After the internationalization of iron ore futures on the Dalian Commodity Futures Exchange, it quickly became the world ’s largest iron ore product with the only single physical delivery. Relying on China's huge iron ore market demand, Glencore and other international commodity traders and miners have come to Dalian to use RMB-denominated iron ore futures for risk hedging. An important factor in quotation.
Dashang Iron Ore Futures has played a positive role in guiding the long-term price of the steel industry and making long-term price planning and guidance. It also provides a practical grasp for RMB internationalization.
On September 26-27, 2019, at the 19th International Symposium on China's Iron and Steel Raw Materials, Qingdao General Manager Wang Fenghai and Brazil Vale Group, Australia BHP Billiton Group, Australia Rio Tinto representatives attended the meeting.
Representatives of all mines have expressed that they have always paid close attention to the Dalian iron ore futures market and have recognized the function of the futures market in iron ore pricing.
On October 23, 2019, a reporter from the Shanghai Securities News confirmed from the industry that Australian iron ore giant Rio Tinto signed an iron ore trade contract with a domestic company in RMB. This is the second of the three overseas giants of iron ore to adopt RMB denomination.
Since 2017, Brazil ’s Vale has begun normalizing RMB settlement during the iron ore trade with Chinese steel companies.
The Shanghai Securities News commented on November 18 that this is a new pricing model for overseas mines following the long-term negotiated price and the Platts index pricing model.
At that time, industry insiders believed that as overseas mines such as Rio Tinto and FMG began to sell iron ore in RMB, the international iron ore trade used to be based on the Platts index and the US dollar as the settlement currency is expected to change.
Iron ore reserves (100 million tons) and average grade (%) of the four major mines, China Industry Information NetworkIron ore reserves (100 million tons) and average grade (%) of the four major mines, China Industry Information Network
Industrial chain "on-chain" blockchain
Another highlight of the RMB cross-border settlement between Baowu Group and Rio Tinto Group is the first use of blockchain technology.
In addition, Baosteel is also actively working with suppliers such as BHP Billiton to study how to use new technologies such as cloud on a larger scale, so that the outside world is full of imagination about the future of RMB iron ore.
Unlike blockchain technology, which still only stays at the conceptual or experimental stage in some other fields, in fact, the steel industry is one of the first industries in China to apply the most advanced blockchain technology on a large scale.
In December last year, according to the report of Shangguan News, China Baowu has discussed with suppliers on the theme of systematic cooperation with digital new technologies since 2018.
The steel industry is the foundation of the industry, with an ultra-long industrial chain, which has spawned a huge steel trade industry. Because steel products are commodities, steel trade needs to advance large amounts of funds, and financing is difficult and high risks. It has always been a problem faced by small and medium-sized enterprises and financial institutions in the field of steel trade. After several steel trade crises, a core issue became increasingly clear: the lack of a credit system.
However, despite the large steel industry, not all participants are strong. Observer Network sorted out and found that Baowu's steel industry public platform "Ouye Yunshang" data showed that the average steel transaction volume was only 12 tons per order.
Ouye cloud business interface screenshotOuye cloud business interface screenshot
"12 tons is as heavy as a steel coil, very small, indicating that most of the participants behind are small and medium-sized private enterprises." Previously, some media cited the introduction of "European Cloud Business". Under the traditional credit rules, these enterprises have insufficient credit and financing is not easy. When steel prices rose and credit was loose, life was good; once prices fell and banks closed, the risk of broken funds spread and spread.
Ouye Cloud has always been committed to building a credit system for participants in the steel ecosystem. Blockchains with the advantages of decentralization, deintermediation, distributed bookkeeping, data tampering, and traceability have entered the sight of enterprise technology developers.
"Everyone who has worked in industry knows that if there is no technical means such as blockchain, there is one more level in the industrial chain, and the information flow will be doubled, and the difficulty of collaboration between different enterprise entities will increase." China Baowu related The person in charge said that this will eventually lead to double the financing cost and difficulty of SMEs with relatively poor credit qualification on the industrial chain.
When large overseas companies are eager to try to issue their own digital currencies, China Baowu, a leading Chinese steel company, cooperates with the Central Bank Digital Currency Research Institute and the Shanghai Municipal Commission of Economy and Information Technology to take the lead in promoting the integration of blockchain technology and the physical industry for SME service.
In July 2018, the “Shanghai Commodity Blockchain Supply Chain Financial Application Demonstration Project” was established. Three months later, a digital asset certificate product named “Tongbao” was born on the Shanghai Commodity Blockchain Platform.
"Tongbao" is not a digital currency, but a digital certificate that circulates in a specific physical industry with credit as its core. Tightly tied to the real industry means that it is difficult to become the "hype target" of the outside world, and it will not have an impact and impact on the financial system.
After breaking away from the virtual and integrating into the entity, people found that the blockchain technology really reduced the risk. With the commodity blockchain platform and digital certificates, the credit points on the steel industry chain were linked into a chain and a network, and began to form a An ecosystem based on credit.
Within the ecosystem, leading companies in the steel industry can easily share and transfer their credit resources to small and medium-sized private enterprises in the industrial chain. By relying on the credit endorsement from the blockchain, small enterprises can enjoy the credit ratings of large enterprises like Baosteel Low-cost financing.
After a year of stable operation, Ouye Yunshang found that after the integration of blockchain technology and physical industry, the chain is becoming longer and longer. SMEs in the steel industry chain not only feel that financing is easier, but also through the commodity area The blockchain platform and related blockchain technologies link procurement, logistics, processing, insurance and other business scenarios.
In terms of blockchain, the Australian mining giant is also not a "conservative".
As early as 2016, the company had announced that it would apply blockchain technology to track its supply chain.
At the time, BHP Billiton technical expert Taylor Smith said that from geologists to shipping companies, BHP Billiton had to deal with suppliers in almost every business segment of the mining industry. Share data, and track data for every link.
Mining companies headquartered in the United Kingdom and Australia are distributed around the world. Because of this, Smith expects that its internal entities can use blockchain technology in a variety of ways to achieve more powerful data sharing.
It can be seen that the blockchain application scenarios envisaged by BHP Billiton are quite similar in concept to the practical exploration of China Baowu Group. This time the two have finally come together in RMB iron ore transactions and blockchain applications. It can be described as a matter of course.
Time is changing, things are right and wrong. Today's Baowu is no longer Baosteel who was at the negotiating table of the iron ore "Long Association" in the past. In the end, it was the RMB.
https://news.sina.com.cn/c/zj/2020-0...k1229471.shtml
Abraham Lincoln
China Baowu and the world's three largest iron ore suppliers have all settled in RMB
May 12, 2020 15:50 Observer Network
0
Original title: China Baowu and the world's three largest iron ore suppliers have all settled in RMB
[Text / Observer Network Zhou Yuanfang] On May 11, China ’s largest steel group, China Baowu, announced that it had recently completed the first RMB cross-border settlement with the Australian Rio Tinto Group using blockchain technology. The total amount exceeded One hundred million yuan.
The group mentioned that this was another new development following the completion of the first RMB cross-border settlement with Vale in Brazil and BHP Billiton in Australia in January and April this year. So far, China Baowu and the world's three largest iron ore suppliers have achieved RMB cross-border settlement of iron ore transactions.
Reuters website screenshotReuters website screenshot
As early as September last year, the general manager of Dalian Futures Market Wang Fenghai met with representatives of the three major mines. Each mine representative said that he has always paid close attention to the Dalian iron ore futures market and that the futures market is pricing iron ore The function is recognized.
Behind all this is China's huge real economic capabilities, long-term efforts in the construction of RMB commodity futures, and "the landscape is unique" under the global epidemic.
Steel World Site MapSteel World Site Map
Observer Network combed and found that the latest data released by the General Administration of Customs showed that China's total iron ore imports in April were 97.27 million tons, which was 13.22% higher than March's 85.913 million tons and an increase of 20.4% over the same period last year. , A new high for the same period since the record in 2002. In addition, from January to April this year, China's total iron ore imports reached 360 million tons, a year-on-year increase of 5.4%.
The steel industry website Steel World.com reported on May 11 that China ’s steel industry is expected to be affected by the country ’s efforts to prevent and control the new coronary pneumonia epidemic. Demand is further optimistic about overseas mining giants. Ship tracking and port data show that the arrival of iron ore from Brazil increased by 12.7% month-on-month in April, while the number of imported mines from Australia increased slightly by 0.7%.
The China Iron and Steel Association recently published an article to judge that the epidemic situation in Europe, America, Japan and other countries has not improved. Steel production has decreased significantly, the demand for iron ore has declined, and the amount of iron ore resources flowing into China is on the rise. In the later period, iron ore prices are difficult to rise and will show a downward trend of fluctuations.
Once "the pain of pricing power"
Iron ore is the second largest commodity variety in the world after crude oil, and China is the largest purchaser of the variety.
According to Chinese customs data, China imported 1.07 billion tons of iron ore in 2019, the second highest import in history, and also accounted for 50.4% of the total global iron ore output (available for trading) of 2.123 billion tons that year. Industry data during the same period showed that China's crude steel production reached 996 million tons, and its global share rose to 53.3%.
On April 26, the Lange Steel Network analysis pointed out that the global high-quality iron ore resources are mainly distributed in Australia, Brazil, Russia and Africa due to geological reasons. Although China ’s iron ore resources are large, the overall grade of iron ore resources is low. Ore processing costs are higher. For historical reasons, Vale, Rio Tinto, BHP Billiton and FMG have formed a high monopoly on the world's high-quality iron ore resources.
It is worth mentioning that in 2019 alone, the iron ore output of the four major miners totaled nearly half of global output.
Everyone remembers that China has suffered a big loss in iron ore pricing. Since China Baosteel first participated in the global iron ore negotiation pricing mechanism at the end of 2003, iron ore prices have skyrocketed for five consecutive years.
Subsequently, the situation improved step by step.
On October 18, 2013, the Chinese version of the iron ore futures contract was officially listed on the Dalian Commodity Exchange. The price of iron ore went out of the bear market with a wavelength of 26 months, falling from a high of 984 yuan / ton, and hit a minimum price of 282.5 yuan / ton in December 2015, a total decrease of 71.3%.
Dashang's iron ore main contract continuous K line (monthly line)Dashang's iron ore main contract continuous K line (monthly line)
On May 4, 2018, following the launch of RMB crude oil futures on March 26, Dashang Iron Ore Futures officially implemented the introduction of foreign trader business, which became the first time China's listed futures varieties were opened to the outside world. Towards internationalization is also the experience of exploring the internationalization of existing varieties in the futures market.
Taking RMB iron ore and crude oil as the guide, on November 29, 2018, RMB PTA (purified terephthalic acid) futures also embarked on the road to internationalization. This is an important bulk textile raw material, linking the two major petrochemicals and textiles. The pillar industries of the national economy are in the core link of succession and succession in the industry chain.
The upstream raw material is PX (para-xylene), the source is petroleum; the downstream is polyester fiber, polyester bottle flakes and polyester film, and the downstream is the textile and garment industry.
On August 12, 2019, No. 20 rubber (rubber) futures was officially listed and traded at the Shanghai International Energy Exchange, a subsidiary of the Shanghai Futures Exchange, becoming the fourth open futures variety after crude oil, iron ore, and PTA futures.
This product is a kind of natural rubber, which is the main basic raw material for the tire industry. Data show that about 70% of the world's natural rubber is used for tire manufacturing, and about 80% of them use No. 20 rubber.
At present, China is the world's largest consumer of natural rubber, the largest consumer of No. 20 rubber and the largest producer of tires.
After the internationalization of iron ore futures on the Dalian Commodity Futures Exchange, it quickly became the world ’s largest iron ore product with the only single physical delivery. Relying on China's huge iron ore market demand, Glencore and other international commodity traders and miners have come to Dalian to use RMB-denominated iron ore futures for risk hedging. An important factor in quotation.
Dashang Iron Ore Futures has played a positive role in guiding the long-term price of the steel industry and making long-term price planning and guidance. It also provides a practical grasp for RMB internationalization.
On September 26-27, 2019, at the 19th International Symposium on China's Iron and Steel Raw Materials, Qingdao General Manager Wang Fenghai and Brazil Vale Group, Australia BHP Billiton Group, Australia Rio Tinto representatives attended the meeting.
Representatives of all mines have expressed that they have always paid close attention to the Dalian iron ore futures market and have recognized the function of the futures market in iron ore pricing.
On October 23, 2019, a reporter from the Shanghai Securities News confirmed from the industry that Australian iron ore giant Rio Tinto signed an iron ore trade contract with a domestic company in RMB. This is the second of the three overseas giants of iron ore to adopt RMB denomination.
Since 2017, Brazil ’s Vale has begun normalizing RMB settlement during the iron ore trade with Chinese steel companies.
The Shanghai Securities News commented on November 18 that this is a new pricing model for overseas mines following the long-term negotiated price and the Platts index pricing model.
At that time, industry insiders believed that as overseas mines such as Rio Tinto and FMG began to sell iron ore in RMB, the international iron ore trade used to be based on the Platts index and the US dollar as the settlement currency is expected to change.
Iron ore reserves (100 million tons) and average grade (%) of the four major mines, China Industry Information NetworkIron ore reserves (100 million tons) and average grade (%) of the four major mines, China Industry Information Network
Industrial chain "on-chain" blockchain
Another highlight of the RMB cross-border settlement between Baowu Group and Rio Tinto Group is the first use of blockchain technology.
In addition, Baosteel is also actively working with suppliers such as BHP Billiton to study how to use new technologies such as cloud on a larger scale, so that the outside world is full of imagination about the future of RMB iron ore.
Unlike blockchain technology, which still only stays at the conceptual or experimental stage in some other fields, in fact, the steel industry is one of the first industries in China to apply the most advanced blockchain technology on a large scale.
In December last year, according to the report of Shangguan News, China Baowu has discussed with suppliers on the theme of systematic cooperation with digital new technologies since 2018.
The steel industry is the foundation of the industry, with an ultra-long industrial chain, which has spawned a huge steel trade industry. Because steel products are commodities, steel trade needs to advance large amounts of funds, and financing is difficult and high risks. It has always been a problem faced by small and medium-sized enterprises and financial institutions in the field of steel trade. After several steel trade crises, a core issue became increasingly clear: the lack of a credit system.
However, despite the large steel industry, not all participants are strong. Observer Network sorted out and found that Baowu's steel industry public platform "Ouye Yunshang" data showed that the average steel transaction volume was only 12 tons per order.
Ouye cloud business interface screenshotOuye cloud business interface screenshot
"12 tons is as heavy as a steel coil, very small, indicating that most of the participants behind are small and medium-sized private enterprises." Previously, some media cited the introduction of "European Cloud Business". Under the traditional credit rules, these enterprises have insufficient credit and financing is not easy. When steel prices rose and credit was loose, life was good; once prices fell and banks closed, the risk of broken funds spread and spread.
Ouye Cloud has always been committed to building a credit system for participants in the steel ecosystem. Blockchains with the advantages of decentralization, deintermediation, distributed bookkeeping, data tampering, and traceability have entered the sight of enterprise technology developers.
"Everyone who has worked in industry knows that if there is no technical means such as blockchain, there is one more level in the industrial chain, and the information flow will be doubled, and the difficulty of collaboration between different enterprise entities will increase." China Baowu related The person in charge said that this will eventually lead to double the financing cost and difficulty of SMEs with relatively poor credit qualification on the industrial chain.
When large overseas companies are eager to try to issue their own digital currencies, China Baowu, a leading Chinese steel company, cooperates with the Central Bank Digital Currency Research Institute and the Shanghai Municipal Commission of Economy and Information Technology to take the lead in promoting the integration of blockchain technology and the physical industry for SME service.
In July 2018, the “Shanghai Commodity Blockchain Supply Chain Financial Application Demonstration Project” was established. Three months later, a digital asset certificate product named “Tongbao” was born on the Shanghai Commodity Blockchain Platform.
"Tongbao" is not a digital currency, but a digital certificate that circulates in a specific physical industry with credit as its core. Tightly tied to the real industry means that it is difficult to become the "hype target" of the outside world, and it will not have an impact and impact on the financial system.
After breaking away from the virtual and integrating into the entity, people found that the blockchain technology really reduced the risk. With the commodity blockchain platform and digital certificates, the credit points on the steel industry chain were linked into a chain and a network, and began to form a An ecosystem based on credit.
Within the ecosystem, leading companies in the steel industry can easily share and transfer their credit resources to small and medium-sized private enterprises in the industrial chain. By relying on the credit endorsement from the blockchain, small enterprises can enjoy the credit ratings of large enterprises like Baosteel Low-cost financing.
After a year of stable operation, Ouye Yunshang found that after the integration of blockchain technology and physical industry, the chain is becoming longer and longer. SMEs in the steel industry chain not only feel that financing is easier, but also through the commodity area The blockchain platform and related blockchain technologies link procurement, logistics, processing, insurance and other business scenarios.
In terms of blockchain, the Australian mining giant is also not a "conservative".
As early as 2016, the company had announced that it would apply blockchain technology to track its supply chain.
At the time, BHP Billiton technical expert Taylor Smith said that from geologists to shipping companies, BHP Billiton had to deal with suppliers in almost every business segment of the mining industry. Share data, and track data for every link.
Mining companies headquartered in the United Kingdom and Australia are distributed around the world. Because of this, Smith expects that its internal entities can use blockchain technology in a variety of ways to achieve more powerful data sharing.
It can be seen that the blockchain application scenarios envisaged by BHP Billiton are quite similar in concept to the practical exploration of China Baowu Group. This time the two have finally come together in RMB iron ore transactions and blockchain applications. It can be described as a matter of course.
Time is changing, things are right and wrong. Today's Baowu is no longer Baosteel who was at the negotiating table of the iron ore "Long Association" in the past. In the end, it was the RMB.
https://news.sina.com.cn/c/zj/2020-0...k1229471.shtml