On August 1, a ship loaded with iron ore left Australia and sailed for Bayuquan Port, Northeast China. The iron ore from Rio Tinto Group, one of the major iron ore manufacturers in the world, was imported by Ansteel Group International Trade Corporation Ltd. (hereinafter referred to as Ansteel International), a wholly-owned subsidiary under Ansteel Group. This is the first time to issue RMB L/C to carry out cross-border settlement under long-term agreement on importing iron ore, with the total amount of about 100 million yuan.
Rio Tinto Group is a long-term partner of Ansteel Group. Every year Ansteel purchases millions of tons of high-quality iron ore products from Rio Tinto Group. Under the great support of Rio Tinto Iron Ore and Angang Steel Co., Ltd., Ansteel International fulfilled RMB cross-border settlement for Ansteel Group’s first order of iron ore in a short time.
According to the steel industrial insiders, implementing RMB cross-border settlement for importing iron ore can effectively avoid the risks caused by exchange rate fluctuation for domestic buyers and explore more choices for overseas mining enterprises to carry out its business in China and future development. The Ansteel International completion of RMB cross-border settlement for the first order with Rio Tinto Group marked that Ansteel Group had realized a new breakthrough in RMB cross-border settlement with the world major mining company in terms of importing and purchasing bulk crude and fuel materials. It is also a milestone event for Ansteel Group to highlight responsibility of a central enterprise and promote RMB internationalization.
It’s said that after completing the first order of RMB cross-border settlement, Ansteel International will sum up experience, actively explore new digitalization technology application such as block chain and cloud transaction, further expand RMB cross-border settlement and cooperation areas so as to improve the efficiency of supply chain transaction and reduce transaction cost for Ansteel’s high-quality development.