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Australian miner Fortescue wins HBIS iron ore tender in yuan

Published 10/08/2020, 08:46 pm
Updated 10/08/2020, 08:48 pm
© Reuters.
FMG
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BEIJING, Aug 10 (Reuters) - Australian miner Fortescue Metals Group FMG.AX won a tender to supply HBIS Group Co Ltd with an iron ore spot cargo that will be paid for in yuan, the Chinese steelmaker said on Monday.

HBIS unit Hebei Iron & Steel International Holding notified Fortescue, the world's fourth-largest iron ore miner, by email that its offer for 30,000 tonnes of super special fines had been accepted, HBIS said in a statement, without putting a value on the deal.

It marked the first time an overseas miner had won a portside tender in yuan in China, bucking the trend of U.S. dollar-denominated transactions.

China has been trying to gain influence over pricing of iron ore. Its top steel producers have completed several iron ore purchases denominated in yuan this year. transaction "opened up a new channel for steel mills to lower purchasing costs," HBIS, China's second-biggest steelmaker, said in the statement.

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