Valin anxious to buy Brazilian iron ore in the hands of major steel companies do not "cold"

The company, which lost nearly 2 billion of its losses last year, officially held the Hong Kong Qiao Group in mid-January, gaining a 15-year framework agreement on iron ore supply and marketing.　　And quite some people feel strange is, also suffer from iron ore of domestic other steel enterprise to Qiao Group not cold. "In cooperation with Qiao Group to buy ore, we have to consider a lot of problems, the grade of ore, the size of the mine should be taken into account."　　"Joint Business Network Steel Group director Hu Zhengwu said. The loss accelerated the signing of Hualing January 17, Qiao Group announced that the company will be from the production date of the Brazilian Sam iron ore, Valin Steel Group or hualing Iron and steel group subsidiaries or their designated receiving units to provide a balanced supply of not more than 10 million tons of iron ball Parin, the period of 15 years from the commencement of production.　　And this iron ore price, will be on the basis of market price to give hualing steel certain preferential. It is understood that this is the first time since the Qiao Group to acquire the Brazilian Sam company last year, with domestic steel companies signed a long-term iron ore agreement.　　However, the cooperation of iron ore prices will be lower than market prices, so many people in the industry are suspicious. "In the early days, miners sought downstream customers in the industrial chain and established long-term strategic relationships," he said. So it's definitely going to be a little bit lower in the upfront price. In the past, the three mines were just working with Chinese steel companies.　　Mazhongpu, a visiting professor of China Entrepreneur Association, told Huaxia Times. "The first time the Hualing Steel Group signed a long-term contract with the Qiao Group for 15 years was related to the huge losses in the group last year."　　One industry insider said.　　According to China's Joint business Network analyst Meng, last year, Hualing Steel group lost nearly 2 billion, because its holding subsidiary Hunan Iron and Steel Co., Ltd. in recent years failed to properly deal with overseas iron ore suppliers and the long association supply relationship and failed to grasp the timing of iron ore purchase. A person close to the Hualing Steel group said: "This time to reach an agreement with the Qiao Group, there are also hualing iron and steel group wants to quickly resolve its iron ore procurement problems."　　"The Giants are watching. According to the reporter understands, Qiao Group buys the Brazilian Sam Company, has repeatedly contacted with the domestic major steel enterprise, hoped can reach the supply agreement, and invites it to the Brazilian field investigation, including Baosteel, Wisco, Angang and so on.　　After a field visit, the other steel companies have not given any information on such "concessions" and why other steel companies have been so slow in their actions.　　Lange Steel Network information shows that Qiao Group has with the Shanghai Baosteel Group's Baosteel Resources Co., Ltd. signed an agreement to jointly develop the Brazilian SAM Iron Ore Project 94 part of the prospecting rights, Baosteel's resource delegation has also travelled to Brazil for field visits.　　In addition, Qiao Group and Shandong Iron and Steel Group to develop joint development of the Brazilian Sam iron ore project. A person close to Baosteel said to reporters: "At present Baosteel resources have been basically locked, has been signed with the three major mines for 5 years or 10 years of iron oreSupply agreements. So it is not too short of ore, which is one reason why Baosteel is slow to move. On the other hand, it is also related to its size, now Qiao group to buy the mine is still in the exploration period, the size of the mine is not clear data, so Baosteel will not be too hasty. "Angang own mine accounted for more than 60% of its total, from the overall also do not lack of ore." "Hu Zhengwu said," with the Qiao group to buy ore, to consider a lot of problems, the grade of ore, the size of the mine should be taken into account, in the accurate data, many steel companies in the wait-and-see state, is also reasonable. "Help push domestic enterprises overseas prospecting because the international iron ore market is in short supply, so that iron ore prices have been high."　　According to the industry, the impact of international steel prices is not only the rise of international iron ore prices, international inflation will have a certain impact, global inflation, to catch up with the appreciation of the currencies of various countries, steel prices will rise, until today all countries have been rising steel prices.　　Faced with such a grim situation, the State is also constantly introducing regulatory policies to reduce the volume of steel exports to control the situation. "Just controlling exports is not enough," says Mazhongpu. In view of the current situation, the stability of international steel prices, will not stabilize the price of iron ore, and to solve this problem, we must go out to mining to build steel mills to meet the needs of local economic development, both stable international steel prices, but also meet the growth of international steel demand. In this way, the international layout of Chinese steel enterprises has been solved.　　"Qiao Group since the Brazilian mine, issued a number of invitations, only to be able to find the downstream buyers as soon as possible, until today, although the results are very little, but also indirectly promote the domestic enterprises to find ore overseas momentum." "It may not be a good thing for Chinese capital companies to go out to mining plants to meet the needs of the Chinese iron ore market," he said. "Mazhongpu said.