The hottest Chinese steel enterprises to buy ore o

2022-08-05
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Chinese steel enterprises may buy ore overseas or signal to go to sea again

affected by the sluggish demand in China, the international iron ore price, which has been high in eliminating defects in a timely manner, has begun to decline all the way, and the pressure on miners to survive has doubled. Aiming at this opportunity, the domestic steel enterprises, which have always hoped to get rid of being led by mining giants by buying mines overseas, have rekindled their enthusiasm to go to sea. Affected by the sluggish demand in China, the international iron ore price, which has always been high, began to decline all the way, and the survival pressure of miners doubled. Aiming at this opportunity, the domestic steel enterprises, which have always hoped to get rid of being led by mining giants by buying mines overseas, have rekindled their enthusiasm to go to sea. On the 5th, it was learned from Baosteel that the company was bidding for Aquila, an Australian iron ore and coal company

As the largest iron and Steel Group in China, Baosteel's every move is regarded as an industry vane. This time, it is likely to lead a round of overseas investment in iron ore. Baosteel said it and aurizon, an Australian freight forwarder, would jointly bid for Aquila, a deal valued at about a $1.4 billion (about US $1.3 billion). It is reported that the above M & A will be carried out by Baosteel Resources International, a subsidiary of Baosteel, which currently holds about 19.8% of the equity of Aquila. Upon completion of the acquisition, Baosteel Resources International will hold up to 85% of Aquila's shares, and the remaining shares will be owned by aurizon

the acquisition of Aquila is in line with the strategic goal of Baosteel Resources International. It aims to build a leading overseas resource industry platform by developing iron ore projects and hard coking coal projects in Australia. Baosteel relevant person in charge said

or a signal for steel enterprises to go to sea again

industry analysts pointed out that in the past few years, Chinese enterprises have repeatedly suffered setbacks in their overseas investment in mines, and their enthusiasm has dropped significantly. The investment of Baosteel this time sent a signal to the outside world. Although the iron ore oversupply caused concern, Chinese steel enterprises once again have a big appetite for overseas mining

the main factor stimulating Chinese enterprises is that the price of iron ore has recently fallen towards the lowest level since the end of 2012. At the same time, Rio Tinto and other mining giants have still invested billions of dollars to expand their mining business in Australia. This made the smaller iron miners sit still. They began to try to break the oppression of Rio Tinto and BHP Billiton in order to survive adversity. Aquila was one of them. The demands of these mines coincide with those of Chinese enterprises, and they can be developed with the help of them

in addition, in February this year, it was learned from WISCO that the first ship of iron concentrate from Liberia state mine, the first overseas mine invested by the company, was officially transported back to WISCO. Earlier, WISCO group announced that it has a number of iron ore projects in Liberia, Canada, Brazil and other countries, and controls more than 40 billion tons of iron ore interests. The group hopes to achieve full self-sufficiency in iron ore by 2015. There is no doubt that WISCO's goal of self-sufficiency in iron ore has greatly stimulated other steel enterprises

still need to be vigilant against risks

as we all know, for a long time, the world's three major mining companies have controlled more than 70% of the international seaborne supply of iron ore, which makes China, the largest buyer of iron ore, need to readjust the height of the sample. In order to get rid of the monopoly of the three major mines and have more say in pricing, in recent years, China has encouraged enterprises to invest in mines at sea and wants to rapidly expand the proportion of overseas equity mines

however, the relevant person in charge of the China Mining Federation has publicly said that last year, the failure rate of China's overseas mining investment was as high as 80%. At present, the waste plastics are generally cleaned manually or mechanically. Zeng Jiesheng, an iron and steel analyst, said that after the 2008 financial crisis, Chinese enterprises' enthusiasm for purchasing mines overseas was once unusually high. However, recently, many domestic enterprises have slowed down their pace of going to sea because of the poor cost performance of investment. In fact, if it were really high-quality foreign mining resources, there would have been various capitals scrambling for food, and it would be difficult for Chinese enterprises to take the turn. It can be seen that although this is a good time to invest in overseas mines, steel enterprises still need to be vigilant against risks

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