Sinosteel ships own Ozzie ore back to China-Shanghai International Maritime Information and Literature website

Sinosteel ships own Ozzie ore back to China
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PostTime:2010-07-30 08:00:03.0 View:31
Shipping players are watching with interest after Beijing-controlled Sinosteel Corp made a landmark shipment of its own Australian iron ore to China on a foreign vessel. The state-owned company arranged to move an ore cargo at Koolanooka in Western Australia using Pacific King's 71,300-dwt Hai Long (built 1997). Sinosteel is being closely monitored by charterers who see the company-China's largest iron-ore importer-as one of shipping's biggest customers. It imported 45 million tonnes (MT) of iron ore last year but aims to increase this to 80 MT in the next three to five years. The voyage of the Hai Long with its 60,000-tonne cargo was the first involving foreign iron ore 100% owned by a Chinese company. Sinosteel owns reserves at Koolanooka through subsidiary Sinosteel Midwest Corp. The site is expected to produce about two MT of ore per year for about five years. However, 15 MT per year will be produced over the next 15 years from its much bigger Australian mine at Weld Range. The Hai Long charter suggests that the transport of Chinese-owned iron ore to China may be more of an open market than previously thought. One Shanghai-based broker said: "It was previously thought that the transport of Sinosteel?s iron ore from Australia would not be available to many brokers. "Sinosteel has been quite open in the past. But it was feared that things might change with their owned minerals." Enquires made by TradeWinds suggest that the shipment was arranged by a Beijing-based broker. It was, however, unavailable for comment, as were Sinosteel Midwest and Sinosteel China.
Source:Tradewinds Author:By Neil Connor Shanghai