Baosteel conducts first yuan deal with Rio Tinto

Steel giant has now signed major local-currency transactions with all world’s majors 

by Nadeem Xu
Baosteel conducts first yuan deal with Rio Tinto

(ATF) Baoshan Iron & Steel, known as Baosteel, on Tuesday said it has recently made its first yuan-denominated iron-ore purchase worth more than 100 million yuan ($14.1m) with Australian mining giant Rio Tinto.

The subsidiary of China Baowu Steel Group said the cross-border yuan settlement was supported by blockchain technology.

With the latest transaction, the Chinese steel giant has realised cross-border yuan settlements in the iron ore-trade with all of the world's three largest iron ore producers.

Baosteel concluded its first cross-border yuan settlement with Brazil's Vale in January and with Australia's BHP in April.

With increasingly improved transaction procedures, Baosteel's yuan cross-border settlement of imported iron ore has begun to transition from trial deals to a certain amount of settlements on a regular basis.