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ITC shares and Luoyishan realize the first RMB letter of credit for cross-border settlement of iron ore transactions
Sep 25,2020 10:23CST
Source:International Trade Co., Ltd.
The content below was translated by Tencent automatically for reference.

SMM Network: September 23, Xiamen International Trade Group Co., Ltd. (hereinafter referred to as "ITC shares") through Xiamen Bank of China opened a letter of credit in RMB to Australia's Royishan Iron Mine Holdings Co., Ltd. (hereinafter referred to as "Royshan"), to achieve the first cross-border settlement of iron ore transactions using RMB letters of credit, with a settlement amount of about 150 million yuan.

This is the first order for a domestic iron ore trader and the first transaction for Luoyishan to accept cross-border settlement of RMB letters of credit, marking a new milestone in the cooperative relationship between Royishan and ITC, bringing more possibilities and convenience for both sides to deepen business expansion and exchange rate choice.

Relevant people commented that under the severe and complex international economic and financial situation, cross-border settlement through RMB letters of credit can reduce exchange links, save costs, and help enterprises avoid the risk of exchange rate fluctuations. This transaction symbolizes the cross-border settlement of iron ore RMB to a new level, is of great significance to the business development of China's iron ore trade, and is a powerful practice for the continuous acceleration of the internationalization process of RMB and the continuous improvement of its international status.

As a "rising star" of the international iron ore industry, Luoyishan is one of the five iron ore giants in the world. In 2014, ITC signed a long-term iron ore procurement agreement with Luoyishan, totaling 10 billion yuan. During the 2018 Expo, the two sides signed a memorandum of understanding on long-term cooperation. Over the years, the two sides have continuously expanded the areas of cooperation, deepened the level of cooperation, and maintained a positive growth trend in the scale of business.

As a senior domestic iron ore trading service provider, ITC takes "continuously creating new value" as its responsibility, from the procurement and supply of raw materials such as iron ore, coal and coke, to the domestic trade and export of all kinds of processed steel varieties. it has long been committed to the global layout and integration and extension of the ferrous metal vertical industrial chain. Iron ore alone, the contract size is expected to be nearly 100 million tons in 2020, the scale of operation has steadily ranked among the top three domestic traders for many years. After decades of meticulous work, ITC has established a long-term and stable strategic partnership with the world's mainstream mines and a large number of medium and large steel mills, which has been widely recognized by the upper and lower reaches of the industrial chain.

The new breakthrough in cooperation with Mount Roy will promote the competitiveness of ITC shares in the ferrous metal industry chain to a higher level. The person in charge of ITC said that ITC will continue to carry out the corporate mission of "continuously creating new value", actively promote RMB cross-border settlement business, and contribute international trade strength to the internationalization of RMB.

RMB settlement
ITC shares

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