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HBIS and Vale Agree for Yuan Denominated Iron Ore Deal

Steel News - Published on Thu, 23 Jan 2020

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Reuters reported that China’s second-biggest steelmaker HBIS Group said that its trading arm had secured two letters of credit to purchase iron ore from Brazil’s Vale in a CNY 200 million (USD 29 million) contract denominated in the Chinese currency. One of the letters of credit was from Hong Kong and the other from mainland China

China is the world’s biggest iron ore consumer and has been trying to increase its influence over pricing of the steelmaking raw material, for which contracts are usually in dollars. Vale signed its first deal to sell iron ore in yuan last November - a spot transaction to supply China’s Yongfeng Group using the Dalian Commodity Exchange iron ore price.

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Posted By : Rabi Wangkhem on Thu, 23 Jan 2020
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