A Chinese metal company has emerged behind an increasing newcastlemax order at Shanghai Waigaoqiao Shipbuilding (SWS) that is currently worth $212m.
The state-controlled company, Citic Metal, is a well-known and active charterer. But the order, done with ICBC Leasing as financial owner, will put the state-owned metals and ore trader in control of its own fleet of large bulkers for the first time.
An earlier version of the order and with no sign of Citic Metal's involvement, was announced in December at the time of the merger of China's two large state-owned yard groups. At the time, ICBC Leasing was said to have signed up for two vessels on unknown terms, with options for two more ships.
But TradeWinds now understands that all four 210,000-dwt ships are firm and that the order was finalised at a price of $53m per ship, including scrubbers. Delivery is set for 2021.
Chinese finance sources said the ships are being ordered on the basis of eight-year bareboat charters to Citic Metal at a bargain rate.
An official of ICBC Leasing confirmed this week that the order for four ships has been firmed up with open-loop scrubbers but declined to comment on the price tag or the charter terms.
Officials of Citic Metal could not be contacted immediately.
With four newcastlemaxes on bareboat hire, charterer Citic Metal becomes more visible as a shipping player in its own right.
Global mining and trading
Citic Metal has mining interests in Brazil and Africa and trading activities, but is not to be confused with sister company Citic Mining International, which is already well established as a shipowner. Citic Mining's fleet of 12 purpose-built 115,000-dwt baby capesizes serve its own Sino Iron project at Cape Preston in the Pilbara region of Western Australia.
Both Citic Metal and Citic Mining are wholly owned by the huge Beijing-based Citic Group, China's flagship investment company.
The original announcement of ICBC Leasing's order for two firm newcastlemaxes and two options at SWS was part of a $4bn cornucopia of newbuildings revealed in celebration of the long-awaited tie-up of China State Shipbuilding Group and the former China Shipbuilding Industry Corp.
Much of the bounty went to SWS, China's prime builder of capesize and newcastlemax bulkers. VesselsValue lists about 28 capesizes and newcastlemaxes under construction there for owners including Maran Dry Management, Polaris Shipping, Eastern Pacific Shipping, Sinokor, Shandong Shipping and Foremost Maritime. The figure does not include Citic Metal or ICBC Leasing vessels.
