China Minmetals to launch an ore trading center

0 Comment(s)Print E-mail, November 8, 2017
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On Nov 3, China Minmetals, together with Port of Caofeidian, HBIS Group, Shougang Group and COSCO Shipping, signed a cooperation agreement in Beijing, to launch Caofeidian International Ore Trading Center. The center is expected to be eco-friendly, highly efficient and fully functional.

At the signing ceremony, Guo Wenqing, President and Deputy Party Secretary of China Minmetals, said that the center could fully use the state-owned capital while making the central enterprises more dynamic, influential and risk resistant. As a result, the project will gradually change the way Chinese steel enterprises import and trade ore, promoting their green construction and internal cohesion. Moreover, it’s likely to change the competitive landscape of the international ore market, and push it ahead for stable and reasonable growth.

With a transaction volume of 100 million metric tons each year, the center will customize its service based on different requirements and characteristics. It will also create big data to oversee all the procedures for better port management. Meanwhile, the project will solve the environmental challenges faced by steel enterprises, thus promoting the transformation of China’s steel industry.

Analysts pointed out that China Minmetals has an edge in establishing the ore trading center. “As one of the oldest trading companies in the country, China Minmetals stands out with its rich experience, strong logistics capability and stable distribution channels. In addition, its subsidiary Metallurgical Corporation of China has been taking lead in metallurgical construction, with 90% of domestic market share. So it is quite familiar with China’s steel enterprises and their needs.”

Port of Caofeidian is chosen as the site due to its superior location. As part of the Belt and Road Initiative, the port can offer quality service in logistics and warehousing. Other partners will also contribute their expertise in production and shipping, to build a full-chain mineral trading center.

Caofeidian International Ore Trading Center will greatly improve the environment of Beijing-Tianjin-Hebei Region. China Minmetals explains that a closed, smart and green center will consume less material, making it an ideal choice for both living and working. In line with national regulations, the center’s planning and design will also guarantee sustainable growth of the region.

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