Baosteel signs shipping deal

Baosteel signs shipping deal

Baoshan Iron and Steel (Baosteel), China’s largest steel maker, has contracted China Shipping Development to ship iron ore to feed its growing steel output, the shipping company says.

China Shipping Development will ship 6 million tonnes a year of iron ore along the coast of China for three years starting in April 2007.

It will ship ore from Australian ports to Chinese ports for 15 years starting from 2010, it said in an exchange statement.

Baoshan Iron and Steel is expected to produce about 6 per cent more crude steel, or around 22 million tonnes, in 2007 than in 2006 as it ramps up output to feed China’s robust economy. Its parent, Baosteel Group, expects to double crude steel production to 50 million tonnes a year by 2012.

Chinese mills are seeking term shipping deals to help avoid volatile spot shipping rates, which make it difficult to predict and manage costs.

Source: AAP

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