-
-
-
-
Honor
-
-
-
-
-
Contact
-
China's coal exports open a new era of RMB settlement
Release time:
2018-02-26
Author:
Source:
On July 2, China Coal Group and relevant South Korea trading companies formally signed a memorandum on the conversion of Haohua anthracite settlement currency from US dollars to RMB. The signing of the memorandum marks the official opening of the era of replacing the US dollar with RMB as the international settlement currency in the field of coal export trade in China. China Coal Group Haohua Anthracite Export South Korea Posco Iron is its largest annual export trade order. The total value of coal transactions in the third quarter involved in the memorandum is about 0.104 billion yuan. The signing and implementation of the memorandum will reduce the loss of exchange and international remittance between buyers and sellers, as well as shorten the settlement cycle, making future contract pricing simpler and closer to China.
On July 2, China Coal Group and relevant South Korea trading companies formally signed a memorandum on the conversion of Haohua anthracite settlement currency from US dollars to RMB. The signing of the memorandum marks the official opening of the era of replacing the US dollar with RMB as the international settlement currency in the field of coal export trade in China.
China Coal Group Haohua Anthracite Export South Korea Posco Iron is its largest annual export trade order. The total value of coal transactions in the third quarter involved in the memorandum is about 0.104 billion yuan.
The signing and implementation of the memorandum will reduce the loss of exchange and international remittance between buyers and sellers, and shorten the settlement cycle, making future contract pricing simpler and closer to China's domestic market.
Haohua Energy's annual report shows that the company's main customer, South Korea Posco, sold 0.418 billion yuan in 2014, accounting for 6.1 per cent of its total operating income.
Haohua Energy was established by Beijing Beijing Coal Group in conjunction with China Coal Energy, Capital Iron and Steel Corporation, Minmetals Development Co., Ltd. and Coal Scientific Research Institute. Beijing Coal Group holds 91.54 and China Coal Energy holds 2.73.%.
The company's anthracite coal is mainly used in the metallurgical industry, and is mainly sold to North China, Northeast China and East China. Key customers include Hebei Iron and Steel Co., Ltd.; anthracite coal is mainly exported to Japan and South Korea, and major foreign customers include New Japan Steel Co., Ltd. And South Korea POSCO Iron Group Corporation, etc.
Because the quality of the anthracite coal it produces meets the needs of large domestic and foreign steel companies, the main customers have a certain degree of dependence on its anthracite products, and the company has a certain bargaining power.
On June 1, China and South Korea formally signed the Free Trade Agreement between the Government of the Republic of the People's Republic of China and the Government of the Republic of Korea, which will enter into force at the end of 2015 or early 2016. The scope of the agreement covers 17 areas of trade in goods, trade in services, investment and rules. In terms of tariff concessions, after the conclusion of the China-South Korea FTA, after a transitional period of up to 20 years, China's zero-tariff products will reach 91% of the tax purpose and 85% of the import volume, while South Korea's zero-tariff products will reach 92% of the tax purpose and 91% of the import volume.
After the signing of the China-Korea Free Trade Agreement, China Coal Group signed a memorandum of understanding on the settlement of anthracite exports in RMB with relevant South Korea companies, which can reduce the dependence of my country's coal export business settlement on the U.S. dollar and promote the development of RMB settlement in the field of international bulk trade.
Key words:
Previous Page
