China Baowu, World’s Top 3 Iron Ore Enterprises Complete Yuan Settlements

Baoshan Iron & Steel Co., Ltd. (Baosteel Co., Ltd.), a subsidiary of China Baowu Steel Group Corporation Limited (China Baowu), and Australia-based Rio Tinto Group recently completed the first cross-border yuan trade settlement through blockchain technology.

The order is valued at about 100 million yuan ($14.07 million).

China Baowu had already transacted yuan trade settlement of iron ore deals with Brazil-based Vale and Australia-based Broken Hill Proprietary Billiton Ltd this January and April.

Those two orders were respectively valued at about 330 million yuan and nearly 100 million yuan.

The settlements are proof that China Baowu has established trade with the world's top three iron ore enterprises through cross-border yuan settlement. It is also the first iron and steel enterprise to promote yuan-based iron ore import transactions in China.

More iron ore import deals will be done with yuan directly in the future, according to the company.

In addition, the company highly values adoption of such digitalized new technologies as blockchain in trade and business. It has sought cooperation with its suppliers on using new technology to improve business efficiency and create new modes since 2019.

The yuan settlement deal between Baosteel Co., Ltd. and Rio Tinto Group was the first time the blockchain technology had been used for cross-border settlement, which laid a solid foundation for its future application.

Meanwhile, Baosteel Co., Ltd. is also working on wider application of cloud technology to promote its development with suppliers including Broken Hill Proprietary Billiton Ltd.

(Executive editor: Wang Ruoting)