China Merchants Steam Navigation was founded or agreement with the Vale in Chinese

Photo: Oriental IC

Chinese shipping giant China Merchants Steam Navigation (601872. SH) was established very large ore carriers, China Shipping Co (hereinafter referred to as Chinese mines), and the world's leading iron ore provider CVRD to jointly promote their shipping plans.

China's shipping giant posted above on the evening of September 1, with registered capital of 10 million dollars.

China Merchants Steam Navigation on May 20, the deepening strategic cooperation framework agreement signed with Vale, at its fourth session was adopted by the 14th meeting of the Board of Directors relating to Brazil's Vale acquired four 400,000 tons used VLOC Bill, and at the end of July, said, intends to purchase from the Vale into 4 large ore carriers.

VLOC (Very Large Ore Carrier) is a large ore carriers, which transport iron ore, coal, steel, fertilizers and other bulk cargo, tonnage at 200,000 tons.

Shipping experts said Chen Yi to journalists of an interface and Super ore in China is in line with the implementation of the Vale shipping plans.

In September 2014 after XI Jinping, China's President visit to Latin America, Beijing has 400,000-ton class Valemax calling at Chinese ports ban eased, Vale and COSCO Group, China Merchants group signed a cooperation agreement, the two Chinese companies sold 4 Valemax, rented by the Vale, and in parallel to these two enterprises 10 Valemax order respectively, provided by the Bank Finance and credit support.

China Merchants Steam Navigation view, strengthen the cooperation in the field of iron ore and Vale, and is conducive to the future development of the company, in line with the interests of the company and the shareholders.

Cosco COSCO Group listed shipping platform (601919. SH), China shipping group, Sino-CSC, China Merchants group four shipping Central, 80% of the Chinese shipping market share, China Cosco about 1/3 of a share.

Three ships planned cooperation with the Vale. Other than the merchant ships on May 4 this year, China's two shipping giants, owned by COSCO Group and China shipping development (600026. SH) in Singapore established the China mining transport Ltd, specialize in maritime transport of iron ore and related dry bulk business, in fact, perform subject of cooperation agreements with Vale for Cosco.

Ore shipped to the Vale, China bought $ 445 million worth of 4 after Valemax will be named "far sea" "vision of the sea" "distant seas" and "far from seawater". "Distant seas" during its maiden voyage July 4 landing of Qingdao port.

"This is Vale's price strategy of balancing. "Chen Yi on the interface, said Vale will not choose a single owner for 400,000 tons of shipping cooperation, China will selectively reflecting their own advantages. "Vale price balance is needed, if you select a China shipowners ' cooperative, tariffs may be leading. So, I've found a (merchant ship), avoiding price fluctuations, not in its own interests when a freight, another can to balance. "

Vale in 2006 for the first time exposed "Super ships" plan, spending huge sums to a 400,000-ton ore carrier Valemax. This mega-ship, not only those unable to cross the Suez Canal, you need to round the Cape of 200,000-ton ships to reduce 35% emissions, shipping costs are substantially reduced 25%-30%.

On September 27, 2014, China Merchants Steam Navigation packages are shipped agreement with Vale, in addition to the purchase of Vale 4 400,000 ton-class large ore carriers, a merchant ship's wholly-owned subsidiary Hong Kong Ming wah shipping to new build 10 large ore carriers, and 10 ships into affreightment signed 25-year iron ore and Vale.

"Ming wah shipping is a shell company, its little ship. "Chen Yi said China Merchants steam navigation will be re-established Chinese mine, become the subject of Vale, the implementation agreements.

Analysis of Chen Yi, Cosco, the two shipping Giants sea in for the 400,000 tons ship, is also under pressure from sluggish shipping situation.

"In the context of overall excess capacity, for the 400,000 tons ship means phasing out domestic major Straits of 160,000 tons of bulk carriers. "Chen Yi says such ships were the main transport of iron ore, China 70%-80% Straits of 160,000 tons of dry bulk ships, bulk carriers, the rest of the more than 200,000-ton class.

"China Merchants steam navigation operation of a single, mainly by tanker, Vale saw it is due to the strength of its capital in China other than CNOOC and Cosco, find out more capital owners. "Chen Yi said.

Merchant ship bulk business advantage is small, its 400,000-ton tanker is an advantage.

In August 2014, merchant shipping and Sinotrans long endurance at a cost of $ 1.1 billion, based on 51:49 shares in Singapore set up the China energy transportation limited (China VLCC), the joint venture of supertanker capacity among the world's top three.

Under merchant shipping notice, first half of the year, China Merchants steam navigation to achieve net profit of 558 million Yuan, an increase of 120%.

With 400,000 tons after a ship transporting iron ore, China United Steel analyst for journalists on the interface is called Vale iron ore quantity and there will not be shipped to China rise. China Merchants Steam Navigation was founded or agreement with the Vale in Chinese mine big boat

"Vale of ship transport in order to reduce shipping costs. "To say, 400,000 tons of shipping transportation iron ore accounts for Vale of 1/10 of iron ore for export.

In 2014, Vale's iron ore shipments more than 330 million tons, production of 319 million tons. 2013, Vale sold 150 million tonnes of iron ore, Vale is committed to 5 years later, in 2018, iron ore exports to China achieved double.

Brazil mining industry trade organization Sinferbase said recently, in July this year, Vale and its subsidiaries export volume rose 14.3% from front 22.75 million tonnes a year to 26.02 million tons.

Brazil national geography and statistics (IBGE) data show that 2014 Brazil exports accounted for 22.3% of the total exports of mineral products, and iron ore exports to China accounted for 32.8% of the total export volume of iron ore.

With port and ship need reduced cost and energy-saving emissions, shipped mine ship, and port large has into trend, again plus iron ore price compared two years Qian, plunged 70% and appeared supply excess of situation, more conducive to China mills and imports, China Ministry and national NDRC Yu this year July 2 let go, in Dalian Hong Kong, and Tangshan Hong Kong, and Qingdao Hong Kong, and Ningbo-Zhoushan Hong Kong 4 a port 5 a port, layout 7 a berth received by 400,000 tons ore ship.

"In the context of overall excess capacity, for the 400,000 tons ship, will be gradually eliminated 160,000 tons of domestic mainstream channel-type bulk carriers. This type of ship is the main transport iron ore, China 70%-80% Straits of 160,000 tons of dry bulk ships, bulk carriers, some 200,000 tons. "Chen Yi said the China-Brazil routes will be to ship 400,000 tons of iron ore transport, Strait of 160,000 tons of bulk carrier is bound to falter.