Long term contract by MOL for iron ore to China
Recent market reports reveal that Mitsui O.S.K. Lines (MOL) and Maanshan Iron&Steel Co., Ltd. signed a 10 year contract for transportation of iron ore. According to the contract which will be effective as of January 1, 2005, almost 500'000 tons of iron ore will be shipped annually. Loading port will be Tubarao or Ponta da Madeira in Brazil, while discharging ports are agreed as Shanghai/Qingdao ports. Being one of China's major iron and steel producers, iron ore imports of Maanshan from Brazil, Australia and other countries total almost 6 million tons per year. In line with its aim to cover the needs of many steel companies worldwide, MOL will not spare any support for supplying feedstock to the booming iron and steel industry in China. Last year, MOL signed similar long term contracts with Baosteel Group Corp. back in November and with Baoshan Iron and Steel in December and thus it will ship almost 10 million tons of iron ore annually in 15 years starting from April this year.