SteelOrbis Shanghai
Chinese steelmaker Shougang has inked a long-term contract of affreightment for imported iron ore with China Shipping Group in Beijing. This is the second time for the two groups to cooperate, following their signing of a charter agreement for a 230,000-mt freighter in October 2006. According to the new contract, China Shipping Group will provide two 300,000-mt and one 230,000-mt freighters for the transportation of imported iron ore for Shougang Group in the long term. With the new arrangement, contracts for freighters between the two parties have reached a total dead weight tonnage of 1.06 million mt.
Shougang Group chairman Mr. Zhu Jimin said that Shougang plans to move its production base to the Caofeidian area during the 11th five-year plan period. By the end of this period, Shougang's steel output will reach 20 million mt while its imported volume of iron ore will exceed 30 million mt. Through the latest long-term contract of affreightment, the transportation costs for imported iron ore can be hedged, which is also beneficial for both parties' mutual development.