SMM News: at the Qingdao Port Iron Ore Business Promotion Conference held on May 30, Qingdao Port (601298.SH) revealed that the annual ore throughput of Qingdao Port has climbed from more than 2 million tons in 1978 to hundreds of millions of tons at present. For every 9 tons of ore imported in the country, 1 ton comes ashore from the port of Qingdao.
As the world's largest steel producer and consumer of iron ore, China imports more than 70 per cent of the world's seaborne trade in iron ore.
Qingdao Port Chairman Li Fengli told Interface News that Qingdao Port provides services to more than 150 steel mills and traders across the country.
Qingdao port iron ore business is mainly concentrated in Qingdao port Qianwan port area and Dongjiakou port area, is one of the four domestic ports that can call Brazil Vale 400000 ton super mining ships, the number of 400000 tons of mining ships accounted for nearly 40% of the country. The port can provide "end-to-end" whole process service, including cargo receiving and unloading, warehousing, transportation, bonded, mixed matching, screening, futures delivery and so on.
Thanks to this, Qingdao Port is accelerating its transformation from a port of destination to a hub port and from a logistics port to a trade port.
Shagang, headquartered in Zhangjiagang, accounted for 20 per cent of the group's business last year.
According to Chen Shaohui, executive vice president of Shagang Group, in 2006, Shagang Group began to establish cooperation with Qingdao Port to load and unload ore in Qingdao Port, some of which were transferred to Haili Wharf of Shagang Group in Zhangjiagang. Some are transported to Henan Anyang Company by sea and railway, and others to Dongte Group in Northeast China.
"like the run relay, every port is an important part of the global supply chain system." Li Fengli said that Qingdao Port, as a distribution hub, where iron ore can be connected by sea to ports such as the Yangtze River Basin through small tonnage ships. Dongjiakou Port area also has a complete port railway system, which can connect inland steel mills and ports through trains.
In addition to domestic ports, the iron ore distribution business at Qingdao Port is also aimed at neighboring countries such as Japan and South Korea.
On March 27 this year, Qingdao Port and Japan's Itochu Commercial Co., Ltd. signed a strategic cooperation agreement, which is intended to open up a new channel for the international transfer of iron ore between Japan and South Korea in Qingdao Port. The move is also seen as an important symbol for Qingdao Port to accelerate its transformation to an ore hub port and build an international shipping center in Northeast Asia.
An important background of the Qingdao Port Iron Ore Business Promotion Conference is that international iron ore prices have soared to their highest level in nearly five years due to the decline in foreign iron ore supply and other reasons.
As of May 28, the Platts iron ore index was $106.1 a tonne, the highest since May 2014.
How to reduce the logistics cost of iron ore has become the focus of attention of the major steel mills.
Jingdang, manager of ore scrap business at the Raw Materials Purchasing Center of Angang Co., Ltd. (000898.HK), said at the meeting, "the price of iron ore has exceeded US $100 per ton from US $70 last year, and steel prices have been falling. Reducing costs has become the most important consideration for steel mills. "
At this promotion meeting, Qingdao Port "timely" launched a series of preferential programs.
The interface news reporter noted that according to the principle of "volume and price mutual insurance, incremental discount," Qingdao Port has abolished the weighing fee for cars entering the port, and the shipment volume of steel mills in 2019 exceeded the incremental portion of 2018. According to the standard of 2 yuan / ton to give profit to the customer, the basic volume of the new customer is 500000 tons. In addition, in line with the principle that the greater the volume of business, the longer the free stacking period of goods, the maximum free stacking period of goods can be extended to 360 days.
In order to improve the logistics efficiency, Qingdao Port has put forward some performance promises, such as the non-lag period of ship receiving and unloading, the train loading rate of more than 100%, and the vehicle arrival and delivery to ensure 1.5 hours out of port and so on.
In order to meet the needs of customers, Qingdao Port has also launched a port storage cargo pledge financing service, ore customs clearance, can be pledged to Qingdao Port Financial Holdings Limited to apply for short-term liquidity.
At the promotion meeting, Qingdao Port joined forces with the railway and signed 10 strategic cooperation agreements with 12 partners, including steel mills, traders, ports and shipping companies, including Jinzhou Port, Jiangyin Port and Shanghai Changhang International Shipping Industry.