Chinese Steelmakers Increasingly Use Yuan to Buy Iron Ore Abroad

In 2021, China’s iron ore imports declined 3.9% from the previous year to 1.12 billion tons, accounting for 70% of total global iron ore trade.

Chinese steel mills have become a major force in promoting the internationalization of the yuan by increasingly using the currency to settle iron ore deals with global suppliers.

Baoshan Iron & Steel Co. Ltd. (600019.SH), the listed arm of China’s largest steelmaker, recently told investors that about 6% of the company’s 2021 iron ore purchases abroad were settled in yuan. The company aims to expand that to 10% in 2022.

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