Affected by the new round of epidemic and changes in the international situation, the current downward pressure on the economy has increased, and efforts to stabilize the macro-economic market have become the focus of policy. Since the beginning of this year, the international commodity prices have fluctuated at a high level, the prices of energy and mineral products have soared rapidly, the supply of important raw materials has tightened, and some key core parts are out of stock and out of supply, which has formed tightening constraints and negative impact on the industrial chain supply chain. Ensuring the supply and price stability of China’s bulk commodities has become an important means to stabilize economic development.
Recently, Minmetals Development Co.Ltd(600058) jointly with the China Federation of logistics and procurement, carried out the research on the development model of the modern international circulation system of bulk commodities of central enterprises, which pointed out that as the world’s largest resource importer, China’s international status of trade circulation industry does not match the market scale, its ability to obtain international resources is not strong, the international competitiveness of shipping industry is weak, and there are “weaknesses” in the international supply chain system. We should vigorously promote the reform of the international circulation system of bulk commodities, comprehensively implement the five strategies of controlling resources, increasing scale, building channels, adjusting performance and creating carriers, and help China maintain the supply and price of bulk commodities by forming systematic capabilities.
stabilize the chain, strengthen the supply chain and seek new breakthroughs in high-quality development
Minmetals Development Co.Ltd(600058) as a listed company of China Minmetals Group Co., Ltd., which is mainly engaged in black commodity trade and circulation business, it is mainly engaged in resource trade, metal trade and supply chain service. The company is entrusted to manage a number of overseas companies, covering Asia, Europe, the United States, Africa, Oceania and other countries and regions. It has formed a marketing network with integrated and global operation at home and abroad, has strong industrial chain integration service ability, can provide comprehensive and diversified services for upstream and downstream customers, and has comprehensive advantages in resource acquisition, marketing network, industrial layout, risk management, brand and professional talents.
In the face of the ups and downs of the commodity market, Minmetals Development Co.Ltd(600058) closely focuses on the main business line of “strengthening the foundation, strengthening the foundation and driving innovation”, accurately grasp the opportunities, fully study and judge when going up, and expand the business scale in time; In case of decline, we should make steady response and shift gears flexibly to effectively resolve market risks. The company’s operating revenue in 2021 was 87.507 billion yuan, and the net profit attributable to shareholders of listed companies was 479 million yuan. The performance indicators increased significantly for two consecutive years, reaching a new high in recent ten years. On this basis, the company made a good start in the first quarter of 2022, laying a good foundation for achieving the annual goal of 2022.
In recent years, Minmetals Development Co.Ltd(600058) Poly has built its business capacity, strengthened resource acquisition in the upstream and improved integrated services in the downstream. The annual report shows that in 2021, the company’s iron ore business signed a long-term agreement with overseas mines of 5 million tons, and the long-term agreement volume of Mines reached a new high in recent years; The manganese ore business has signed a long-term agreement of nearly 500000 tons, including an index pricing long-term agreement of nearly 200000 tons with the world’s leading manganese ore suppliers; The sales volume of iron ore was about 27.51 million tons, which was basically the same year-on-year; The coal sales volume was about 4.91 million tons, a year-on-year increase of 17.6%; The sales volume of coke is about 1.05 million tons and that of chromium ore is about 1.5 million tons, with a year-on-year increase.
The company’s steel business innovates the trade mode, stabilizes the procurement cost of downstream customers through hedging and other tools, and provides long-term market risk management solutions for end customers. On the basis of long-term price locking business, promote new business models such as long-term price protection and long-term difference adjustment, help customers reduce procurement costs, stabilize the impact of large market fluctuations on production and operation, vigorously develop manufacturing terminal and import and export business, improve the quality of steel mine linkage, mine iron linkage, integrated distribution and value-added services, and achieve 6.37 million tons of steel terminal distribution and 10.81 million tons of steel operation in the whole year.
bravely guarantee the important task of stabilizing prices and actively practice the “digital Minmetals” strategy
As a state-controlled listed company, Minmetals Development Co.Ltd(600058) while achieving the best performance in the past decade, it has not forgotten its original intention, actively responded to the call of the state to ensure supply and price stability, fulfilled the mission of central enterprises, took practical actions to ensure the stable supply of ferrous metal raw materials and national key engineering materials, and promoted the healthy development of the industrial chain.
The company’s iron ore business gives full play to the advantages of resource acquisition channels. On the basis of expanding the business scale of long-term cooperation with major mines, the company actively uses derivatives hedging tools to stabilize the risk of price fluctuation and provide stable resource supply for downstream iron and steel enterprises; Continuously tap overseas low-grade iron ore resources, carry out washing and processing by using the technical advantages of major shareholders and brother units, and increase the supply of iron for the country; Coal commodities vigorously expand access to overseas resources. China minerals, a subsidiary, took the initiative to provide imported metallurgical coal to coastal power plants to ensure energy supply, which was named and praised by national ministries and commissions; Manganese chromium ore seizes the low position of the market to obtain resources and steadily distribute, so as to ensure the raw material supply of Chinese alloy enterprises. Longteng Digital Technology Co., Ltd. completed the bidding task of four batches of copper resources (110000 tons) and zinc resources (180000 tons) of the State Reserve Bureau with high efficiency and high quality, made contributions to regulating the market rhythm and enhancing the utility of reserves, won high praise from the national development and Reform Commission and the State Reserve Bureau, and was praised in a circular.
While expanding and strengthening the main business of trade logistics, the company continues to accelerate the pace of digital transformation and accelerate the construction of longtengyunchuang industrial Internet platform project. With the vision of building an Internet Ecosystem of all factor bulk commodity industry, the project aims to create platform, systematic and large-scale advantages, and continuously improve the company’s innovation and development ability and market core competitiveness; Relying on the five business segments of Longteng yuncang, Longteng yunshang, Longteng intermodal transportation, Longteng commerce and Longteng technology, the platform promotes the coordinated development of supply chain businesses such as warehousing, processing, logistics, bidding and insurance brokerage, and is committed to providing customers with one-stop, all-round and comprehensive services integrating exhibition and trading, warehousing and processing, multimodal transportation, supply chain services and information technology. In the first quarter of 2022, the company’s logistics park business achieved a throughput of about 1.98 million tons, a year-on-year increase of 13%, and a processing capacity of about 260000 tons, a year-on-year increase of 11%; The total amount of logistics services completed by logistics business is 28.28 million tons; The entrusted amount of bidding business was 7.025 billion yuan, a year-on-year increase of 69%, and the bidding amount was 6.332 billion yuan, a year-on-year increase of 71%; Insurance brokerage business achieved an operating income of 11.79 million yuan, an increase of 40% year-on-year. In the future, the company will firmly grasp the new driving force of digital transformation, strive to build a modern and digital circulation system connecting raw materials, metals and supply chain services, and constantly explore a new situation of development.
In 2022, under the guidance of the policies of “moderately ahead of schedule infrastructure investment” and “accelerating expenditure progress”, infrastructure construction, as a means of counter cyclical regulation, will play a greater role in the “steady progress” of the economy in the new year. In addition, the “policy based on the city” under the main tone of “no speculation in housing and housing” will also help boost the real estate industry generally restrained last year. Superimposed with the expected loose monetary liquidity factors, the downstream demand of the steel industry is likely to be released in 2022.
Minmetals Development Co.Ltd(600058) said that it would fully grasp the industry opportunities, actively strengthen market research and judgment, flexibly adjust business strategies, and steadily improve business efficiency and quality. Looking forward to the future, the company will continue to anchor the strategic positioning of “maintainer of safe and controllable supply chain, creator of service value of industrial chain, organizer of bulk commodity industry ecology and leader of modern circulation service system”, strive to build a globally competitive supplier of metal minerals and comprehensive industrial service provider, accelerate the construction of modern circulation system, make Minmetals contribution to maintaining the supply and price of bulk commodities and highlight the responsibility of development.
