In July 2017, iron ore miners Gibson Hill Company announced the lifting of the Iron Hill (Iron Hill) mine acquisition agreement, the solution is a party in Hebei, China, a business.

Gibson Hill said the reason for the relocation was that the company failed to comply with the basic terms of the acquisition agreement, that is, the purchase of the mine’s first year of iron ore planned production of 1 /

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First, the signing of the agreement

The acquisition agreement was first signed in November last year. On December 23, 2016, the Mountgibson Iron Mine Company of Australia announced that it had entered into a company with Scit Trading Co., Ltd. (hereinafter referred to as “Scit Trade”), a subsidiary of Head & Shoulders International Enterprise Limited (“Chief International”) Iron ore purchase agreement. Under the agreement, the scit trade will purchase 25 percent of the available capacity for the first year of the iron hill in Gibson Hill.

Gibson Hill said the pricing reference to the Platts index, in accordance with the premium and impurity to do the corresponding increase and decrease, and scit trade in the 12-month contract agreement expires after 12 months.

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The agreement is also the third sales agreement signed by Gibson Hill for the Tieshan project, which now sells 70% of its first annual production.

At that time, Gibson Hill hoped that the development of Tieshan mine would begin as soon as possible so that the sales of the Tieshan mine began in the first half of 2017 when the standard hematite stock was produced.

Gibson Hill Chief Executive Officer has said: “This agreement further emphasizes the good relationship between the mountain Gibson and Shougang, Shougang has been our company ‘s strong and reliable shareholders and customers.

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Second, the background of Gibson Hill

The database shows that Gibson Mountain Iron and Steel 1996 in Western Australia Perth was formally established in 2001 listed on the Australian Exchange. China Shougang Group holds 14.20% of the shares of the company.

Shougang Holdings (Hong Kong) Limited holds 47.78% of the shares of Chief International, while Shougang Holdings is fully controlled by Shougang Group. Shougang is one of the largest state-owned steel producers in China and has become the second largest shareholder of Gibson Hill since 2009 through indirect shareholding.

The company has two iron ore projects in Western Australia and the Kimberley area of ​​Western Australia, and the company also has a hematite project in the Gibson Hill area of ​​southeastern Geraldton. The three projects are: Tallering Peak project in Western Australia, iron ore project in Kulan Island and three mines in Izannin Mountain.

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The exploration resources of Istan Xinshan Iron Mine are 1.668 billion tons. The long-term reserves are over 5 billion tons, the average grade of ore is 39.4%, and the grade of iron ore after ore dressing can reach 68.5%. The iron mine was originally the first project of Chongqing Iron and Steel (Zinc Steel) and Asian steel cooperation. But this was called “the most cost-effective, the acquisition of the best quality resources,” but because of the $ 3 billion mining gap is difficult to solve, and ultimately can only choose to sell shares.

According to Gibson Hill official website, the company has a recoverable reserves of 52 million tons, the annual output of 3 million tons. 2011 total assets of 1.56 billion Australian dollars, the income of 670 million Australian dollars, the profit of 350 million Australian dollars.

Third, Tieshan mine profile

Tieshan Mine is located in the western Midwest, only three kilometers from its existing extension hill mine.

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On December 9, 2016, Gibson Hill announced that the Western Australian Ministry of Environment had approved the Tieshan project and said the company expects to begin its work in the first half of 2017.

In the third quarter of 2016, Istan Tan Shan sales of only 71.1 million tons. As an alternative to Istan, the total cash cost of Tieshan is expected to be consistent with that of Izannin Hill.

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Tieshan’s presumption and inferred iron ore resources for the 8.8 million tons level, grade 58.3%.

Based on the current development schedule, Gibson Hill expects the project to contribute between 400,000 and 500,000 tonnes of iron ore in 2016 and 2017 and is expected to be sold at the end of 2018, when all product sales are expected to 5.5 million tons – 600 million tons.

Fourth, the Chinese enterprises repeatedly lost letter

And this termination is not the first time Gibson Hill on the Chinese enterprises default, before Rizhao Iron and Steel had the enterprise to court!

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August 2010, Gibson Hill Rizhao Steel on the grounds of breach of contract to the Japanese claim 114 million US dollars. In October 2011, the two companies announced a settlement and a long-term relationship.

A year later the situation reversed, the steel will Gibson Hill to the arbitration tribunal.

According to Rizhao Iron and Steel, Rizhao Iron and Steel and Gibson Hill in 2011 after the signing of iron ore import contracts signed, but Gibson Hill has not yet fulfilled one of the “garbage ore” contract, after the invalid is forced to bring arbitration, the subject amount of 700 Ten thousand U.S. dollars.

Finally, have to say that Chinese enterprises to do their own at the same time, we must establish their own signs in the international, can not be foreign enterprises pit cheat!

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First, the price trend

The average price of maleic anhydride as of the end of this week was 9285 yuan / ton (both tax), down -0.11%.

Second, the market analysis

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Products: into July, maleic anhydride factory new single cargo is poor, turnover has slowed down, local high prices have loosened, but the cash flow less restrictive decline is not obvious, but the July is still lack of maleic anhydride market downturn risk.

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Industrial chain: demand point of view, although in June and July, maleic anhydride market downturn is not light situation, but the resin factory operating rate remained at 40% near the operation, with the resin raw materials, maleic anhydride, styrene successive , So that the downstream production costs of the resin plant highlights the pressure, lower profit margins, but also suppress the current downstream of the new single market will, high turnover continue to pressure. Supply point of view, at present, benzene supply point of view short-term incremental slow, but the butane method point of view, with the east side of the supply side of the supplement, the market supply pressure will continue to ease, or give the price certain operational resistance.

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Third, the market outlook forecast

Chen Lin said: At present, the lack of domestic maleic anhydride market just need to stimulate the next, the sale of fear to continue to stalemate, because the downstream price floating limited, terminal environmental protection and other factors constraining the downstream high-priced resin procurement capacity, so in July Point of view, maleic anhydride downstream pressure will gradually warming, the market deposit line space.

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Titanium dioxide market supply continued to lead to 2017 since the European market prices continued to rise, and is expected to continue to the third quarter, which will lead to paint and other downstream industries profitability problem becomes more obvious.

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According to the European market, some procurement and sales information that, due to continued tight supply, the third quarter, titanium dioxide prices are generally expected to rise, the negotiations are very small.

Titanium dioxide prices continue to rise for a variety of reasons, including the European and global titanium dioxide industry, the merger and reorganization, as well as the past few years the manufacturer strict inventory control, as well as Huntsman Finnish titanium dioxide plant earlier in 2017 occurred Fire and so on.

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Is expected in the third quarter, the price of titanium dioxide agreement is likely to rise in the current price of 180 to 350 euros / ton.

Although the price increase in the third quarter contract price, but according to the supply, suppliers and product level differences, the expected price increase is generally about 250 euros / ton, up to 300 euros / ton.

In the third quarter, according to the different product grades, the contract price for standard titanium dioxide products for paint and paint production is about 2500 to 3000 euros / ton (FD, free delivery price).

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Paint and other areas of the downstream buyers said that in view of raw material prices rose sharply, especially titanium dioxide prices rose sharply, and continued to rise for more than 1 year, their profit margins are declining, this is trying to transfer pressure to the downstream areas.

But these users also said that the downstream market competition is very intense.

“The profitability of the firm is quite tough and we can not digest it through sales growth, so the profitability of the firm is under extreme pressure,” a buyer said.

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This relentless upstream cost pressure is causing buyers in areas such as coatings to seriously consider lowering their titanium dioxide usage or seeking other alternative possibilities if possible.

However, these buyers also acknowledged that although the use of other white filler to reduce the consumption of titanium dioxide, but with the same performance requirements of titanium dioxide alternatives is difficult to find.

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Overall, the demand for the European titanium dioxide market is still healthy, there is no obvious signs of slowing consumption, for some downstream buyers to take hoard goods measures, but in some cases artificially created the illusion of demand expansion.

According to some three quarters of the goods have been booked an empty supplier said that the supply of the European market is still tight, delivery time is short 4 to 6 weeks, long 2 to 3 months, depending on the product grade. Another buyer said that every month they are trying to confirm to meet their order quantity.

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There is also a trader that some participants in the downstream paint and coatings industry have been forced to cut their production due to the supply of titanium dioxide, but this view is not directly or widely confirmed in the market.

Due to tight supply in the European market, some players are seeking supply from Asia, as supply in Asia has improved, although prices have increased in recent months.

However, this view is not agreed by all, some European dealers said they think from the price point of view or based on the application of process quality differences in the consideration of the Asian titanium dioxide imports to Europe is not attractive.

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According to the data show that the European second quarter titanium dioxide contract price of about 2.34 ~ 2.55 US dollars / kg.

Titanium Dioxide is a white powder pigment used in the fields of paints, coatings, plastics, paper, ink, fiber, food and cosmetics.

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July 6-7, by the China Chemical (601117) and the physical power industry association sponsored the “first lithium titanate battery industry chain symposium” opened in Wuxi, Jiangsu. According to the China Securities News, the total from the Chinese Academy of Sciences, Fudan University, Tianjin University, China Academy of Electric Power and other colleges and universities and scientific research institutions of experts and scholars, as well as Yinlong new energy, micro-macro power lithium batteries such as lithium enterprises in charge of a total of 300 I attended the seminar, seminars on the lithium titanate battery industry chain, material performance, system performance and market applications and other professional areas to explore and exchange.

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June 2, the Ministry of Industry issued a “new energy vehicles to promote the use of recommended models directory” (the first batch of 2017), a total of 87 brands 309 models selected, compared with the third batch of 634 and the fourth batch of 453 models The number of passenger cars 29, accounting for 9.39%, passenger cars 189, accounting for 61.17%, 91 special vehicles, accounting for 29.44%. According to the technical route points, the fifth batch of new energy car directory contains a total of 264 pure electric vehicles, 42 hybrid models and 3 fuel cell models.

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In all models, 87 models using three yuan lithium battery, are passenger cars and special vehicles; 162 models using lithium iron phosphate batteries, which use the bus has 145; 35 models using lithium manganese oxide battery, which The application of the bus has 29; another 12 models using lithium titanate batteries, are bus. Can be seen that the current use of more safety and stability of the lithium iron phosphate battery, passenger cars use more energy density is relatively high three yuan lithium battery. At the same time, according to statistics, 270 models using permanent magnet synchronous motor, accounting for 87.38%, only a few models using AC induction motor.

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Zheshang Securities pointed out that this batch of models in the 12 models of passenger cars using lithium titanate batteries, accounting for 6.35% of the crowded passenger car models; and the third and fourth batch of promotional catalog, respectively, 19 and 6 bus models The use of lithium titanate batteries, respectively, when the batch directory bus models of 4.19% and 2.24%, showing the application of lithium titanate batteries in the bus has increased the proportion. Compared with the current widely used lithium iron phosphate battery, three yuan lithium battery, lithium titanate battery in the cycle life and fast charge performance advantages, the application of the appropriate scene (such as fixed line bus), you can properly avoid energy Low density of the shortcomings. Lithium titanate batteries are expected in the application of new energy vehicles will gradually expand.

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According to Huai Xin information reported that in recent years, Zhuhai Yinlong, Xingneng Group and other lithium titanate battery manufacturers intensive expansion of high-end demand for titanium dioxide surge, causing titanium dioxide enterprises attention. Cobalt prices for the past six months due to the new energy vehicles ternary materials and sought after speculation by the capital, and with more and more industrial capital overweight lithium titanate batteries, high-end demand for titanium dioxide began to increase rapidly, is expected to reshape the development trend of titanium dioxide industry

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The National Development and Reform Commission and the Ministry of Commerce have jointly issued the Catalog of Foreign Investment Industries (Revised 2017) (hereinafter referred to as the “Catalog”). Compared with the “Foreign Investment Industry Guidance Catalog (Revised 2015)”, it has been adjusted in terms of improving the level of service, manufacturing and mining. Among them, the mining industry focused on the abolition of unconventional oil and gas, precious metals, lithium and other areas of access restrictions.

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“Catalog” to further reduce the restrictive measures of foreign investment, retain 63 (including restrictions on the entry 35, prohibit the entry 28), than the 2015 version of the “Catalog” 93 restrictive measures (including the incentive to have more than the requirements of the entry 19 Article 38 of the Restricted Article, Article 36 of the Prohibited Entries) has been reduced by 30. Mining industry, the abolition of the oil shale, oil sands, shale gas and other unconventional oil and gas exploration and development, precious metals (gold, silver, platinum group) exploration, mining, lithium mining, mineral processing, molybdenum, tin ), Antimony (including antimony oxide and antimony sulfide) and other rare metals smelting and other areas of foreign capital restrictions.

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Another major change in the “Catalog” amendment was the adjustment of the structure and the explicit management of foreign investment access (negative list of foreign investment access). In accordance with the requirements of the reform of the negative list model, the 2017 edition of the “Catalog” will be part of the original encouragement of the shares than the required items, as well as restrictions, prohibited class integration as a negative list of foreign investment access, as a foreign investment before the entry of national treatment Negative inventory management model of the basic basis. In addition to negative lists, in principle, no restrictive measures for foreign capital entry, foreign investment projects and enterprises to implement the record management.

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“Catalog” is an important industrial policy to guide foreign investment in China. Encourage foreign investment projects can enjoy preferential policies such as duty-free of imported equipment. Preferential supply of land to the encouraged foreign investment industrial projects for intensive land use can be carried out at a rate of not less than 70% of the national minimum price for industrial land transfer in determining the land transfer reserve price. Encouraged projects in the western region can enjoy preferential policies for corporate income tax in the western development.

“Catalog” will be released after about 30 days of the transition period, July 28, 2017 from the official implementation. After the approval or filing of foreign investment projects in accordance with the 2017 edition of the “Catalog” implementation, before the approval or filing of foreign investment projects in accordance with the 2015 edition of “directory” implementation

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