Baowu Steel and Vale signed strategic partnership agreement

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Baowu Steel Group, China’s largest steel producer, has signed a series of strategic agreements with Vale, the Brazilian miner, to explore partnerships in several areas.

Under the agreements, the two companies will cooperate in steelmaking, base metals, technology research and development, as well as logistics and supply chain to effectively improve the shipment of iron ore. Baowu and Vale also agreed to look into potential joint venture opportunities.

Baowu’s full range of steel products will provide strong support for Vale’s business development around the world and Baowu will share its logistics resources to help its partner to expand in China quickly and cost-effectively.

In the past few years, Vale signed a series of COA deals with major Chinese and South Korean shipping companies, leading to a slew of very large ore carriers (valemaxes) being ordered at shipyards in the 2 countries.